Mother effing MA!
Massachusetts
So if anyone here has sold items on Ebay last year you will notice the 1099-K form in the mail. What is this? Well MA passed a RETROACTIVE law in November that if you sell anything on Ebay throughout the year for a total of $600 or more you will have to claim it as INCOME. So if you sell your bow for $600 that you paid $1000 for at a LOSS you will have to cough up money to the state even though you already paid taxes on it and it is old. DO NOT sell anything on Ebay. Federal law requires you to claim taxes on 200 transactions or $20,000 but MA and VT are now $600. Thanks Republican governor Charlie Baker. Go on the internet and their are stories of people now having to pay $500 to accountants to take care of this new law. This was not announced to us and sneakily passed into law. So now I will be getting all the deductions I can, mileage to the post office, tape, boxes, shipping etc. Just be warned that Ebay will show your transactions EVEN though say someone returned your item. The fact that MA wants you to claim everything you sell is rediculous! To re-iterate this over $600 is EARNED INCOME not sales tax. Id rather throw my bow in the garbage then claim it as earned income!
And to clarify it is $600 or more over the course of the year not just one transaction $600 or more.
f@#king doush bags.....so now you have to save every receipt from when u buy to time u sell on eBay bull shit. some of the highest taxes in nthe nation and they keep wanting more......
jdr, the problem is that this will open us up to audits and fines because we will say screw you I'm not declaring used items as earned income. I'm not even sure your receipts will help you.
Archerytalk classy's ......here we come!!!
I went to do my taxes today online and Freetax USA does not have the 1099K on it to fill out so I am at a stand still. If I claim on a 1099 I am saying I'm a small business and therefore I may be fined for not paying quarterly taxes. I haven't been this pissed off doing my taxes since MA passed that law requiring everyone to have health insurance and I had no idea what ID number to plug in until the damn paper came in the mail weeks later. Ironically another Republican governors law. What use are they?
Okay, Massachusetts just blows chunks, and I will include that fake ass republican Charlie Baker in that group. Their thirst for tax dollars is ridiculous. Now, with that out of the way, I am fairly certain this only exists for people that are using ebay, paypal, etc. for online business.
https://ttlc.intuit.com/questions/4215106-live-in-massachusetts-received-a-1099-k-from-paypal-for-the-amount-of-627-00-massachusetts-changed-1099-k-reporting-to-anything-over-600-00-where-do-i-enter-it
For me, this is the point where I will respectfully draw the line in the sand and tell the State to fuck off (along with confiscation). If I get something like this in the mail, I am throwing it in the trash. This day was coming, for some of us sooner than others. But at some point you have to say, "enough is enough".
Spike, you can't win. How do they know you sold anything? Nope, he didn't buy it. F this state and the RINO Baker !
Peter, you are correct this is for online business but the problem is that their is no way to distinguish whether or not your sale was for profit so it affects everyone. If you have to fill out a 1099 it is for earned income which a used bow for sale is not. Had I known about this law their would have been nothing on Ebay. I'd rather have a yard sale for half the money then subject to this crap. For those of you who think I'm over reacting go ahead and put your stuff on Ebay and let me know how pissed you are next year when the form comes in. If you were used to not itemizing deductions and you now have to go through an accountant this new law will cost you hundreds more on top of the bogus income tax being paid. I think I'm going to change to a Democrat because at least I will expect to get screwed.
How about getting a 1099 because you've been selling stuff for a friend as a favor.... I called him and told him I will be calling him next week after my tax appt. Have a feeling I will be calling him to tell him that he can come get his stuff.
How about getting a 1099 because you've been selling stuff for a friend as a favor.... I called him and told him I will be calling him next week after my tax appt. Have a feeling I will be calling him to tell him that he can come get his stuff.
hmaxims, all I can say is try explaining that to MA Dept. of Revenue.
xi, Paypal sends the info to MA Dept. of Revenue so they do know. No way around it.
I got the 1099K from PayPal. I don’t run a business.
I sell some fishing stuff here and there. I can (and will prove) I took a loss an everything I sold. Add in PP fee, shipping, gas and I should be claiming a loss!
I don’t think this will be a big deal. Pretty easy to prove I made no profit. Buy a reel for $900 and sell for $600 after a year, even with depreciation I took a loss. I didn’t make any “income”.
GED, the problem is that with no warning most will not have any receipts to back it up. If you have not filled out any 1099's in your taxes then that is an extra fee from an accountant or on Turbo Tax just to prove you are good to go. Simply typing in this or that will not fly if they decide to audit you. I once ran a small business and did not pay quarterly taxes at first and without fail I got a fine from MA DOR. I also said screw them when I won $1,000 on a ticket as I could not find where I could claim my lottery losses on Turbo Tax and bam without fail a letter in the mail and a fine. MA can't catch welfare fraud but they sure are on top of the tax payers!
Just to clarify, Baker is no Republican. Pay no attention to that R behind his name.
I sold just over $2K in 2017. I already sent my forms for my accountant. Waiting on a call back. Not too worried.
This is a new MA reg. Our tax rate is like 5%. Fed is like 28% (depending on income) that would hurt.
Feds require PayPal to report at $20K and/or 200 transactions. I don’t make any money, and it is easy to track what I resold at a loss.
I sold 2 bows that were mine and one for a buddy on ebay. Got a 1099 for 1800 lol. Fk me
Spike, I'm speechless, again. Face to face for cash or USPS Money order so far so good.
Keep in mind guys that with all the dems in the state house if the governor, any governor vetoed any bill the dems will over ride the veto and pass the bill to law. Just watch all the vetoes turn to overrides at budget time. This law sucks but of your going to blame one, blame them all. Let's Go
Send lots of notes/phone calls to state legislators. 600 bucks as the filing point is nuts. I'm not a ebay person, but at that rate, it's just nuts.
The only positive is if you are used to itemizing and use turbotax or an accountant. If you do that, you are good to go - I guess - and could use it in your favor for state taxes I guess...
I'm going to look into this but like GED said I find it near impossible you can't deduct your cost on the item when you bought thereby nullifying all or a portion of the gain. Only issue is if they audited you you would need your receipts to back up your cost.
I just got a paypal 1099 as well... Grrrr... what a joke!
Ooooffaaaa!!! I can see ct polititians will be huddled in the corner schemeing and watching you guys..if their claiming youre a business after 600$ then write it off against the business providing they give you a tax id number..the accountant has to get creative...i once bought a new washer dryer i claimed.my accountant said i couldnt use it ,i told the irs it was for washing my work clothes..cant do that again..lol
I'd love to say I'm surprised about this, but this seems about par for the course in the great Commonwealth of Massachusetts.
The wife uses Turbo tax and it is simple math. File the form and be done with it. Your 1099 numbers will be justified on the form. Follow the directions and it is done. If you are audited you can show them the item and its store cost. I doubt they will audit you for a few transactions if you file the forms and the numbers match up. Don't file after they have the 1099 on file and they hunt you down. Even then it's not the end of the world but not the easy way either. A receipt is not the only form of validation .
Side note : I am told that Ma does not tax clothing... That prompted this thought ( not a suggestion, wink wink ). Selling one used T shirt at $700. Free compound Bow ( Name make and accessories ) included with T shirt purchase.
notme, I'm sure Malloy is sitting at his desk with a big bottle of Astroglide just waiting for the new bill to be plopped on his desk. Republican Romney increased the gun permits 400% and called it a fee not a tax and Republican Baker passed this and said it wasn't a new tax but a tax that should already have been paid. We also are the first state to ban bump stocks which you would figure a liberal Governor in NY, CT, or CA would have jumped on first. I can safely say I will never vote in MA again.
Here is another nifty tax trick that the State did in the past.
If you owned some wetlands and it is almost useless you still pay RE taxes. So the State decided to raise the tax owed , for example , from a few hundred bucks to a Thousand. Coastal folks went nuts.
All were told to file for an abatement... But you had to pay first . They had every intention to give it back but for those that didn't file for it I guess they just paid and paid. For those that did file : It took a year to get the over -payment back. No big loss for each person but calculate the gain on that money as it sat in an interest making account for the town to keep... Bastards. Expect this kind of thing from a Government mentality that thinks we serve them and not the other way around.
Think about which "Party" wants more control of your money . Somehow our ancestors lost their way ( maybe got a little too buzzed at the turn of the prior century ,when Coke hit the market and didn't stop till ... well didn't stop) but we have to find our way back. Smaller / Accountable Government and a Free Market .
Pi, nice try but it is earned income not sales tax. If I sold a shirt for $1000 then the $1000 is going to be taxed as earned income not sales tax. The point being missed here isn't the earned income for the most part as you can probably justify it with receipts the problem is that when you go to the accountant or do Turbo Tax yourself they charge you for the 1099 form. So it will tack on $35-$50 to your tax prep total. I don't care if it is $5 more as it shouldn't be a penny more due to selling old stuff for a loss and not a small business.
Your right Spike , Ill have to print up a paid $1200. for the T-shirt Receipt first .
Filing is a reality and a few dollars more on Turbo is not a great burden. It is the big money that is the burden and finally some relief is on the way . Most folks should not need an accountant .
I agree that this is a crappy burden on the average person selling a few things , especially for a loss . But in fairness I am not sure how the state could collect a tax on those businesses that have become on line stores , which set this thing in motion to begin with. In this new form of sales it is a problem with reporting and Taxing of them. Yes , there is probably a better solution but who has it ? Till then, spend another few bucks and get off the radar . Its the price of a large coffee... No big deal.
PS. I am told that "Yard sale" sites are not reported but expect that to end soon enough.
Go non profit status? Why not the church does it..
Church of 7 day Bow Hunters ... Religious freedom ! I have my rights to Hunt Sunday or I'm repressed ! Sell and trade my Hunting goods as Religious Relics ... We need a Minister . I Herby Ordain all of you as : "Ministers of the Hunting Church" Go forth and File not !
I think all you need are five members to form a church. I'm in. Pete
notme, I've decided to claim myself as a small business and will be deducting mileage, vehicle maint, cellphone, home office space, meals on the road, supplies, computer. What did I miss?
The big losers are gonna be eBay and PayPal, people will start asking for money orders and cut out the risk of paying this pathetic state anything. Our government is the largest and most successful organized crime group in the world. God bless America
Claim yourself as a large corporation and you can get yourself some corporate welfare while you're at it! The state wants to stick it to us, but is laying out tax breaks on a silver platter for Amazon.
Turbotax response to this issue is that you do not have to pay. Only if there was a profit. Selling an old bow at less than MSRP is an easy one even if you do not have original receipts. Tekoa
HFSC, that right there is funny :)
I like Spikes idea. I do view my time afield as spiritual development - it's during those times that I'm at church. Lets just make it formal and sell stuff online without taxing. I like it.
That said, this seems an easy fix. 600 bucks is insanely low. There are folks running stores out of the garage selling old stuff making a living - they should be paying income tax like the rest of us. But the number should be reasonable. 10K perhaps (I have lots of friends that sell a couple year old racing bike (road/mountain/cyclocross/tri/time trial) via Ebay, and in that scenario today, a single transaction could be 2-6K - and a solid loss if it was a top line set up (Wheels alone in that case could be 2-4K). I bet folks that sell car stuff or boat stuff etc can get prices like that pretty quick as well.
Makes me think that something like 10K seems reasonable. Most folks selling stuff they no longer need/want can avoid the 1099 in that case....
Then again, if it's more money grab than not... well, that's different.
What I read online today was that if you are not setup as a business you can regard the form and not claim the income. Its meant only for businesses that are selling.
Spike dude i think i see a bigger vehicle in your future, you know to cart around the deciples of this new found faith to the nudie bar for spiritual awakening..peterk is correct in the minimum number of parishiners, now go find a empty store front ...the holy crap will you look at the size of that rack congrigation sounds about right
https://youtu.be/gcLmQDr7GGw
When possible, deal in cash only. Eliminates the BS.
Spike,.. I used to do my own business outta my home,.. you can deduct whatever portion your office space is in the house on many things,.. say for example you have a spare bedroom and declare that as the "home office". Calculate the % of sqaure footage of your house,.. say for example the bedroom is 15% of house footprint. OK now you can deduct 15% of ALL house bills,.. electricity, water, house tax, mortgage, trash removal, plowing,.. you freaking name it. You can even do landscaping and do your own landscaping and the business can write off what you paid yourself,.. just keep it under 600 bucks,.. else you then have to declare that as income,..
You also never have to show a profit or anything,.. you literally could say I am a Deer Hunting guide in Ma. I had no customers this first year but tried,.. here are my deductions from my business,.. Next year put out 20 dollar add in the local paper. Claim your deductions,.. rinse and repeat. Anything you buy related to hunting write it off,..
While you are at it,.. start a second business outta your home,.. I never tried that but thought of it.
There is nothing illegal about this,..
Lastly,.. I do not even want to talk about Bump Stocks,.. had to take mine off and send it off to a friend in NH... sure was fun while i had it,..
BB, all very true and good points. Proline - that makes way more sense. I mean, if you dont even have a tax ID# can you fill out a 1099... In which case, where could folks look to verify and, some intern somewhere at MDOR needs to take writting 101 at the local community college so they can let folks know far more clearly than they have to this point. I mean, if a 1099 shows at your house, most of us are so conditioned to be complete scared crapless of MDOR/IRS that we spend to much time as it is trying to make sure we do everything exactly correct. As soon as that 1099 shows, any normal person is going to see it and initially freak and think "WTF, I have to get this figured out ASAP".
That said, proline, your post actually makes the most sense here.
I got curious (I'm not a seller, just curious) and this was interesting on the subject: https://ttlc.intuit.com/questions/4216898-confusion-about-1099-k-filing-with-ebay-at-a-loss
BB's right.i know a guy that had a 2600sq ft 2 family victorian that he took out a fha mortgage on his business..rehabed the 2nd floor himself down to new appliances..after the inspection he swapped 2nd fl appliances to 1st put in decent on 2nd and wrote the whole thing off..his unit he claimed 25% business and all he had was a pencil and calcultor..lol...he wrote off everything right down to fancy soft toilet paper..4yrs later he sold it at almost triple what he paid....man life was good then!!!
Anybody wanna pay this tax on some tea?
well i did my taxes already and did not clam it wife said i got something from ebay and i figured it was for the money i had returned to me for none shipment that suck now that i opened it to find out i sold 685 dollars worth of stuff this year cant remember that
Tax accountant responded in a favorable way “selling personal/non/buisness items (not including antiques and collectibles) is not a taxable event, unless you sell them at a profit”
But If you received an income that is reported don't ignore it. File the paperwork ( captain , amend your form and show the math if it is a loss or gain ) If You don't want to deal with it later then make the numbers work . Problem solved.
When you are setting up these accounts to sell on eBay, you providing your soc security number?
