Unless you are actually making a net profit on your bike and other sales paid via Paypal this will have no impact other than requiring a bit more carful record keeping. Even if you get a 1099 you can report a cost basis equal to the 1099 amount if you sold for less than what you originally bought the items for, so you will not pay any taxes. Of course you should retain some sort of record of original purchase price versus what you sold it for.
If someone is selling 10s of thousands of dollars of stuff through Paypal and claims a high cost basis they should be fully prepared to back it up. For most of us it is not a big deal -- the law regarding what is taxed has not changed, just the reporting -- designed to catch those who are actually engaged in a profit- making business but who might be evading taxes. Julian Westerhout Bloomington, IL On Friday, October 8, 2021 at 9:33:20 PM UTC-5 Erik wrote: > I'm pretty certain that this is a new requirement that takes effect on > January 1, 2022. It will result in PayPal, Venmo, etc. being required to > issue 1099-K forms to anyone who sells in excess of $600 per year. The old > threshold was $20,000 and 200 transactions. It's been lowered to $600 no > matter the number of transactions. PayPal is starting to inform customers > now it seems. > > > -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/fcb5184a-86b8-4410-a88a-71b464caef53n%40googlegroups.com.
