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In case you don't know what this is about, there's a long comprehensive breakdown by clear value tax:
this has been delayed for a while, but it looks like it's going into play this coming tax season.
some of the business savvy folks, they already worked around this, but if you're clueless still:
if you sell old stuff, or do side gigs for money, and make more than $600 and get paid through Venmo/Cash App/Paypal........ six hunned ffs, you're going to get a tax bill. Like any business dealing, you can claim expenses, but that turns everyone dealing with this small amount to know how to deal with business taxes.
Lets say you sell old furniture on offer up, plan to move to a new place, if you received those payments as "Good and Services", and that totals over $600 (previously 20K), you're going to need to pay for those taxes. If you can find the receipts for your old furniture, you can counter those taxes by filing them as a loss...... all good and dandy, but good luck finding the receipts of 10 year old furniture, and the fact that you have to claim business expenses at all....... that means your expense of filing for said taxes just went up.
the idea behind the tax is that it helps prevent fraud....
as if hiding $600 is some major fraud that should be looked at.
this has been delayed for a while, but it looks like it's going into play this coming tax season.
some of the business savvy folks, they already worked around this, but if you're clueless still:
if you sell old stuff, or do side gigs for money, and make more than $600 and get paid through Venmo/Cash App/Paypal........ six hunned ffs, you're going to get a tax bill. Like any business dealing, you can claim expenses, but that turns everyone dealing with this small amount to know how to deal with business taxes.
Lets say you sell old furniture on offer up, plan to move to a new place, if you received those payments as "Good and Services", and that totals over $600 (previously 20K), you're going to need to pay for those taxes. If you can find the receipts for your old furniture, you can counter those taxes by filing them as a loss...... all good and dandy, but good luck finding the receipts of 10 year old furniture, and the fact that you have to claim business expenses at all....... that means your expense of filing for said taxes just went up.
the idea behind the tax is that it helps prevent fraud....
as if hiding $600 is some major fraud that should be looked at.
