Yep. They (IRS) apparently aren't taking into consideration that you likely paid for the item that you're selling. 100% of the sale price is not profit, once you deduct what you paid for the item that you're selling.
I received this link from PayPal about the IRS today.
- Thread starter jayman
- Start date
smiling_Hans
Well-known member
While true you can deduct business expense but you can’t deduct a pool cue. The only way you can deduct a pool cue, and if you choose to, then you are subject to self employment tax. Which is what PayPal already assumes you are.
Coos Cues
Coos Cues
remember this when they tell you they are going after millionaires and billionaires, remember they said "earnings" if you sell your item at a loss, as most do, then you should be able to DEDUCT your loss on your taxes, this is making EVERYONE who sells a few items a year into a business, it was never meant to be this way, Land of the free?
you mean like all the people here who broke the law coming here illegally right?
smiling_Hans
Well-known member
Again, you can only deduct business expense. A pool cue isn't one of them unless you have a cue business.
IRS doesn't want a guy to start a cue business to offset losses from his primary income -or- start a hobby business.
For example....I get W2 because I am a wage employee. I start a car racing business and sell racing parts and I also race cars. The losses from racing business can't offset my regular job.
You can possibly, if I remember the correct form number, 4989 I believe (not sure), you can itemize what you sold and hopefully not pay taxes on the money received (loss).
IRS doesn't want a guy to start a cue business to offset losses from his primary income -or- start a hobby business.
For example....I get W2 because I am a wage employee. I start a car racing business and sell racing parts and I also race cars. The losses from racing business can't offset my regular job.
You can possibly, if I remember the correct form number, 4989 I believe (not sure), you can itemize what you sold and hopefully not pay taxes on the money received (loss).
Coos Cues
Coos Cues
Which taxes are they paying?
Which taxes are they paying?
Income tax, Social Security, Medicare are all automatically deducted from paychecks
Next day "they don't have jobs" and be even more ridiculous, ignorance is somehow a protected right
Coos Cues
Coos Cues
Did we give them all green cards so they could get ss#s? It wouldn't surprise me if we did but I hadn't understood that. Thanks for the info.
Basically - the 'influencers' of the generation of people born after World War II decided that they didn't like the names that the Greatest Generation gave them: the me first generation, or "Me-Me's" for short... so they rebranded themselves as Baby Boomers. Unfortunately, they didn't change their behaviors, so the generations following them just kinda decided to give them what they want and refer to them as "Boomers" with a tone of derision instead of trying to rebrand them again.
The following is NOT TAX ADVICE. I only give tax advice to my tax clients. I am self employed.
I sell a few things online. I have since 1999. The threshhold for 2023 is $5000 (down from $20,000). I have alway kept a spreadsheet on my sales, cost of sales, selling commissions, and freight & postage, really just to know if I'm at least breaking even. Never sold a lot in a year.
With the $600 reporting threshhold in 2024, I am completing for 2023 an additional Schedule C for my "Online Sales Business." For the 2023 tax year I made a whopping $195.00 PROFIT, I wasn't close to the $5000 threshhold. I will file this every year now as a second business. Probably won't make money every year, but the losses will be on the Schedule-C. If everyone that receives a 1099 does this I expect there will more Schedule C's with losses than gains. Losses on additional Schedule Cs will reduce income tax. It will also reduce self employment tax.
Downside, there is a risk the IRS could deem it a "hobby" if too many years pass without a profit. "Hobby" losses are not deductible.
I'm also addng a third Schedule C for 2023 that will have a huge loss in year one, mainly due to equipment depreciation, large purchases of supplies and inventory. If you are a cash basis tax payer inventory can be expensed to cost of sales when purchased as opposed to when used, with certain limitations.
Just my ramblings. THIS IS NOT TAX ADVICE
I sell a few things online. I have since 1999. The threshhold for 2023 is $5000 (down from $20,000). I have alway kept a spreadsheet on my sales, cost of sales, selling commissions, and freight & postage, really just to know if I'm at least breaking even. Never sold a lot in a year.
With the $600 reporting threshhold in 2024, I am completing for 2023 an additional Schedule C for my "Online Sales Business." For the 2023 tax year I made a whopping $195.00 PROFIT, I wasn't close to the $5000 threshhold. I will file this every year now as a second business. Probably won't make money every year, but the losses will be on the Schedule-C. If everyone that receives a 1099 does this I expect there will more Schedule C's with losses than gains. Losses on additional Schedule Cs will reduce income tax. It will also reduce self employment tax.
Downside, there is a risk the IRS could deem it a "hobby" if too many years pass without a profit. "Hobby" losses are not deductible.
I'm also addng a third Schedule C for 2023 that will have a huge loss in year one, mainly due to equipment depreciation, large purchases of supplies and inventory. If you are a cash basis tax payer inventory can be expensed to cost of sales when purchased as opposed to when used, with certain limitations.
Just my ramblings. THIS IS NOT TAX ADVICE
My TAXES paid for the free hotels , free food, and cash they received when they "promised" to show up in court in 3 years or so.
It's legal to start another hobby I mean business under a different name every 5 years , if at first your business doesn't succeed try try again.
A pool cue isn't one of them unless you have a cue business.......Seybert's isn't a cue company but they sell cues, aren't they a business?
The IRS is the one making the calls......that is a BIG PROBLEM, an unelected Government Agency IS making the calls, 58,000 pages of tax code by unelected people in an unelected Government Agency TAKE and SPEND YOUR MONEY, our military veterans who served their country don't receive what people who broke laws to get into the country they served get, let freedom ring!!!!!!!!!!!!!!!
smiling_Hans
Well-known member
IRS wants your money. Can't take a loss on a personal property as its not deductible but you can be taxed on the gain of the personal property.
Always....I repeat always......vote with your wallet in mind. Don't worry about policies.
If you vote with your wallet in mind then go Republican. This is the common and obvious. If you like restrictions on businesses due to climate change, social issues, or anything of that matter then vote Democrat. Be warned the Democrat also view any business the same as any big corporation.
Always....I repeat always......vote with your wallet in mind. Don't worry about policies.
If you vote with your wallet in mind then go Republican. This is the common and obvious. If you like restrictions on businesses due to climate change, social issues, or anything of that matter then vote Democrat. Be warned the Democrat also view any business the same as any big corporation.
Maybe you have forgotten, it's MY GOVERNMENT, of the people, for the people, and by the people, I love and served my country in the military, and I will be damned if I sit by and say nothing while the freedoms I and many others are taken by the gubment, if you don't have the nads to fight for what's yours maybe you should look into Russia.
In every state in the US you only need 5 people or less to start a corporation.