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Lol "they" ? You mean the IRS ? Yeah, they are so easy to get ahold of and talk to. Also, it is uncanny how people are so nonchalant about being taxed on property that is theirs and has already had sales tax paid on it. Some items actually gain in value, and we should be taxed on that ? Do we get the taxes back we paid if the opposite happens and it loses value ?
The way I see it, is it's just another example of government over reach, they are bleeding money and need more ways to recoup it. Just as always, those that can end up footing the bill.
Laugh all you want. I've been audited and so have friends of mine. We've had things we didn't have receipts for and gave an explanation. It wasn't anything unreasonable and the IRS looks at thresholds of what's reasonable for income levels. I didn't have a problem, but keep the drama going if you want. The IRS barely has the agents to look at bigger items and that's been apparent for quite some time. Believe or not, they have bigger fish to fry then some of the posters on this forum.
The IRS barely has the agents to look at bigger items and that's been apparent for quite some time. Believe or not, they have bigger fish to fry then some of the posters on this forum.
That's why President Biden wants to hire 87.000 new IRS agents. Don't be naïve!
That's why President Biden wants to hire 87.000 new IRS agents. Don't be naïve!
And I say good luck with that. In the meantime, my statement stands. But I understand. A group of you have nothing better to do then say "Biden left the toilet seat up again". The bias gets old after awhile. If you're doing something illegal, then worry (even though it's pretty unlikely if it's small enough, anyone is going to waste their time with it).
Laugh all you want. I've been audited and so have friends of mine. We've had things we didn't have receipts for and gave an explanation. It wasn't anything unreasonable and the IRS looks at thresholds of what's reasonable for income levels. I didn't have a problem, but keep the drama going if you want. The IRS barely has the agents to look at bigger items and that's been apparent for quite some time. Believe or not, they have bigger fish to fry then some of the posters on this forum.
It isn't drama, it's a pain in the ass. I've had to deal with the IRS before, and the hours spent on the phone isn't all that fun. Sure, things worked out in the end, and once one actually can get ahold of someone to talk to, it isn't that bad. Getting to that part is frustrating though. I just guess some peoples time is more valuable than others.
Now back to the topic. I just have a problem having to pay a tax on an item , even if the rate has been reduced due to depreciation on something I've already paid taxes on. Yeah, I could be a little bitter after going through my tax paperwork last night and seeing I paid $40k in just Federal...isn't that enough ? Apparently not.
Let us know how that works out for you with the auditor
Shy of some dinner and birthday/Christmas gifts this year, I don't anticipate having anything they'd waste their time with that would be illegal. But sure, I'll be happy to report back to you.
You're wrong. If you remodel your 1995 living room and collect $2300 from ebay on all the knicknacks you sell that had originally cost you $4700, the IRS is getting a 1099 from ebay showing you took in $2300 in revenue and when you can't come up with the $4700 in receipts you are paying the full tax bill on that number
A lot of people also buy stuff at garage sales and especially estate sales, and resell them. They don't always get a reciept with their purchase. In that case, it may be impossible for them to deduct the expense.
By the time you factor in the shipping costs, the fees charged, the hassle of boxing and delivering everything, plus the expense of the shipping supplies... And there are difficult customers out there who will demand a refund for the most minute of imperfections... And there's probably more I'm forgetting...
Ya, it's going to be brutal for sellers unless they can mark up their prices significantly. Places like ebay have been virtually dead for years now compared to the good ol days. This is going to probably do some of these platforms in and relegate them to the dustbin of history, like MySpace, and where Facebook is also headed.
I think the tech sector as a whole is headed into some major turbulence and some of these tech giants will likely fall, or get gobbled up.
Tax avoidance is legal. Tax evasion is against the law. Nothing has changed and don't expect anyone to have any sympathy for you if you are the latter.
No one is going to be taxed for basic gifts below the threshold, dinners, money owed by friends, etc. All things you would use the friends and family designation on. In addition, not all apps are currently reporting (subject to change)
Splitting dinner with your friend, sending your roommate money for rent or gifting your cousin a round of birthday drinks? Don’t sweat it. “It’s not taxable,” Watson says.
Not to mention if you sold something and don't have a receipt, they will accept an explanation (which shouldn't be hard to look up an approximate market value for the good sold).
Much ado about nothing except for the tax evaders.
"Yes your honor, I wasn't evading taxes I was just trying to avoid them." - Al Capone.
The issue isn't the one-off dinner or repayment someone does. It is that it isn't just the single transaction, if the net over the year goes over $600 it is reported. Sure you can "say" that it is a gift or payment for a friend. And as long as the IRS doesn't question it and asks you to produce the friend you are fine.
And when I sell an item, I have yet to hear of the IRS accepting anyone's "explanation" when it comes to taxes. Perhaps the thousands of agents they are looking to hire are going to be part of the "Kindler and Gentler IRS".
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