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1099K PayPal/Venmo Tax Requirements 2022

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    1099K PayPal/Venmo Tax Requirements 2022

    How do you think people will handle this going forward for ‘22 while selling/buying things using p2p transactions services such as Paypal,Venmo,Cashapp,Zelle and many more?

    I am reading this right am I? It used to just be small businesses who had to file, sounds like it’s everyone now?


    Understand the current rules and what’s changing in relation to income transferred through P2P payment systems.

    #2
    Just pay cash

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      #3
      Interested to see how this develops. I’ve never worried about selling stuff online because the threshold has been $20K. Now it’s $600. I anticipate companies like PayPal will send a 1099K for all accounts with Goods and Services transactions over $600.

      My assumption is there will be a way to offset the payment amount by reporting the cost of goods sold. If I sell a $500 gun, maybe I paid $450 for it and made a little, or maybe $1000 new and took a loss, or bought it 30 years ago for $150 with value increase due to inflation not profit. Unfortunately, this kind of stuff will now be mixed up in my tax return, it seems. Dangerous territory for govt to step in with individuals and small time transactions.
      Last edited by Burwabit; 12-26-2021, 12:17 PM.

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        #4
        Originally posted by Burwabit View Post
        Interested to see how this develops. I’ve never worried about selling stuff online because the threshold has been $20K. Now it’s $600. I anticipate companies like PayPal will send a 1099K for all accounts with Goods and Services transactions over $600.

        My assumption is there will be a way to offset the payment amount by reporting the cost of goods sold. If I sell a $500 gun, maybe I paid $450 for it and made a little, or maybe $1000 new and took a loss, or bought it 30 years ago for $150. Unfortunately, this kind of stuff will now be mixed up in my tax return, it seems. Dangerous territory for govt to step in with individuals and small time transactions.

        Yeah that’s what my buddy who knows a lot about this was telling me. As long as you can prove you bought say a bow for $1200 and sold it for $1000 you actually file the loss. It’a not a “profit”.

        Supposedly it’s actually going to equate to one hell of a loss for the government just to catch a few small businesses who are skimming the system.

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          #5
          Originally posted by HarryHunter View Post
          Yeah that’s what my buddy who knows a lot about this was telling me. As long as you can prove you bought say a bow for $1200 and sold it for $1000 you actually file the loss. It’a not a “profit”.

          Supposedly it’s actually going to equate to one hell of a loss for the government just to catch a few small businesses who are skimming the system.
          The (one hell of a loss for the .gov) isn't what it's about. How many new IRS agents are in process of being hired?

          Sent from my SM-G991U using Tapatalk

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