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mrbrklyn's Blog

02 Jan 2022

New Tax Laws track coin collectors closely

Credit Cards | mrbrklyn

Part of the American Rescue Plan Act of 2021 they changed IRS reporting rules for banks and Third Party Paying serivces like Paypall which if you recieve more than $600 in payment for goods or services per year will be reported by the IRS on an 1099-K form.
https://www.irs.gov/businesses/understanding-your-form-1099-k

A Form 1099-K includes the gross amount of all reportable payment transactions. You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions. A reportable payment transaction is defined as a payment card transaction or a third party network transaction.

  • Payment card transaction means any transaction in which a payment card, or any account number or other identifying data associated with a payment card, is accepted as payment.
  • Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.

The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.

NOTE: The minimum reporting thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third-party network; there is no threshold for payment card transactions.

Selling coins on ebay has come under much greater scrutiny.

Comments

Mike

Level 7

I have nothing to hide. Let them watch listen do what they want. I'm a simple old man. If big brother wants to know what I bought so what. Its legal. And we have to pay taxes . Sounds like another conspiracy theory. If you have nothing to hide you have nothing to worry about. When did this site become a political fouram?

AC coin$

Level 6

Nice to know . Thanks

AC coin$

Level 6

Nice to know . Thanks

Instead of Ebay, I go to a coin store.

CheerioCoins

Level 5

This is probably on of the main reasons why I don’t usually sell or buy on Ebay. Thanks for the heads up!

I. R. Bama

Level 5

Doesn't matter where you buy, my friend, the problem remains in the government interference in the lives of individuals bordering on the minutia

I. R. Bama

Level 5

All I have to say is our government is on a track to become totalitarian. I prefer cash transactions when possible. Really, it's not the business of the government to track what we buy and sell. Obviously, our government doesn't trust us. I mean really, tracking a paltry 600.00? The feeling is mutual. I don't trust the government either. You all shouldn't either. And, do pay attention to the brainiacs who come up with these dictums and then let that information guide your choices

thatcoinguy

Level 5

Thanks for spreading the word.

"SUN"

Level 6

Big brother is watching

user_94933

Level 3

I get taxed a lot for coins I buy

Golfer

Level 5

Selling coins on Ebay is not what is under scrutiny. IRS is after individuals, not after tax money. Just another way to attack certain individuals. So sad what is happening to this country.

Kepi

Level 6

I agree with you Golfer! Well said!

Mike

Level 7

The items I have bought on ebay shows the tax I pay. They take it out right away. My Pay pal statements reflect the same.. We're I live I have to pay tax. I'm not a seller. I understand. I was pointing out the buyers position

I. R. Bama

Level 5

Mike they are tracking what you spend too

mrbrklyn

Level 4

no - you miss understand. Your confusing buying and sales tax and SELLING and income tax

Long Beard

Level 5

I wonder how that works in states where bullion/coinage are exempt from state tax?

Longstrider

Level 6

Got to to get their "Fair Share!".

Long Beard

Level 5

Words from the "Because we're too lazy to work and you have all the money people. ". How about simple a flat tax?

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