Income for a hobby is taxable. Hobby expenses and losses are no longer deductible (2018-2025). If you don't make a profit in at least 3 years out of 5, then the IRS considers it a hobby.
For online sales, is the sales tax rate that of the buyer's location or the seller's? In any case, if we buy things from eBay or antique malls with the intention to fix then resell, then sales tax is being collected twice. Perhaps we should apply for a sales tax exemption on items for resale.
Last post by poplar1 - December 06, 2022, 11:05:07 PM
The directions for connecting red and black ringer wires to L2 and L1, and the other two ringer wires to A and K, are correct for a C4A Western Electric ringer. They do *not* apply to WE Trimline ringers, WE Princess ringers, or AE ringers like the one shown in your phone.
Instead, you will only use 2 ringer wires. If they are on L1 and A, then run a jumper wire from L2 to K.
Greetings everyone. I'm new to the forum after googling help with trying to get my AE Payphone to ring. I found a thread here that mentioned connecting 2 leads from the ringer to L1 and L2, and the other two leads to A and K. When I do this, I get a busy signal when calling the line. The two blue wires from the board originally ran to L1 and A. No ringing, but I can dial out fine. No matter what orientation I place the two other leads all I get is a busy signal.
I did a few searches here and wasnt able to find anything directly related to my issue, however; it is late so it's very possible I missed it. Any help you all can offer would be greatly appreciated.
note - under the yellow tape on the ringer are two more terminals. Those are the ones I have tried hooking up to A and K with no luck. The two blue wires from the ringer are currently going to A and L1.
Last post by poplar1 - December 06, 2022, 10:35:56 PM
2 new updates added to seller page on eBay:
1) You can now go to the sold page, click on the order number, and if you have already purchased the eBay shipping label, it will show the net amount you received -- after deducting eBay fees, sales tax, and shipping cost for that *one* order.
2) Starting today, you can see total sales for all of 2022 and 2021. However, when you click on the underlined total for the year, the net sales vs. total sales are way off! Even if you had a zero basis (i.e., you obtained all the items for free), this grossly exaggerates the net amount.
Last post by TelePlay - December 06, 2022, 09:01:16 PM
For what it's worth (and for those who both understand and care about this very rigorous new law put into place by the current administration in one of the freebee money laws passed last year), this just showed up on my push notification site:
IRS Issues Another Tax Warning to Americans Who Made More Than $600 Online
Independent contractors who made money via online services will have their income reported to the Internal Revenue Service (IRS) starting in 2023, the agency said in a second warning issued Tuesday.
People who made money via eBay, Etsy, Poshmark, Uber, and other digital services will face the new scrutiny and rules. It applies to anyone who made more than $600 via those platforms or via Venmo, Cash App, Zelle, PayPal, or similar platforms in return for goods and services.
"This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A 'Get Ready' page outlines steps taxpayers can take now to make tax filing easier in 2023," the IRS said in a news release Tuesday.
It noted that before 2022, tax form 1099-K was "issued for third-party networks transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000." But the Biden administration-backed "American Rescue Plan Act of 2021 lowered the reporting threshold for third party networks that process payments for those doing business," according to the agency.
"Now a single transaction exceeding $600 can require the third party platform to issue a 1099-K. Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable," it said.
Business owners were already required to report such income to the IRS. The new rule under the American Rescue Plan, passed last year, means that the agency will be able to figure out what businesses earned via cash apps or other digital services—regardless of what is reported via 1099-K forms.
And the new rule only impacts payments received for goods and services. For example, those who use Venmo or PayPal to send a family member a gift, to pay a roommate's rent, or to pay back a friend will be excluded from the new IRS rules.
"This doesn't include things like paying your family or friends back using PayPal or Venmo for dinner, gifts, shared trips," PayPal said.
Digital services like PayPal and the others will be mandated to send users 1099-K forms if they met the $600 IRS threshold to report income.
"For the 2022 tax year, you should consider the amounts shown on your Form 1099-K when calculating gross receipts for your income tax return," PayPal also said on its website, adding that "the IRS will be able to cross-reference both our report and yours."
The full notification article has been attached as a PDF file.
Unless a person has kept the purchase receipt for EVERYTHING" they have ever purchased in their lives, selling any of these personal (and hobby) items will result in the full sale price (less shipping, fees and taxes) being considered profit (income).
They didn't put in a grandfather clause (exempting items purchased more than X years ago) so everything sold will need paper justification of cost to be subtracted from the sale price and if the justification is not there, it is 100% taxable, no cost of goods sold.
Of course, losses can be be subtracted from profits to end up with a net profit (or loss) for tax reporting purposes starting with 2022 filings in 2023.