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Author Topic: Anyone receive an IRS 1099-K form from PayPal for selling your ham equipment?  (Read 1428 times)

K4PDM

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What's a tax advisor? TaxAct online charges me $4.95.
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KF5LJW

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This is funny. Have any of you heard of Cryptocurrency?  Impossible to trace.

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KN6SU

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Even if you did sell the radio for more than you paid for it, you can claim the profit as hobby income. You can write off all your hobby expenses that year against it. That argument might work well with the XYL as well. But honey, if I don't buy this new radio before Jan 1st then *we'll* have to pay income tax on the sale of the old radio. :-)

I don't know how the Feds distinguish "hobby income" from other self-employed income, but I do know that the states want to collect "sales tax," either from the seller or the buyer, and they are increasingly putting the burden on sellers to charge and collect that sales tax.

I'd advise folks who buy and sell stuff to get advise from an expert in federal and state tax liabilities. Many folk are languishing in federal and state prisons because they believed plausible sounding BS from snake-oil salesmen promoting ways to avoid paying taxes which won't stand up in Court, if it ever comes to that.
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AA4PB

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Bob  AA4PB
Garrisonville, VA

W6MK

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Hobby income & expenses.

Bob is absolutely on the ball about this. There are clearly distinctive features of businesses that are designed to produce profit and hobbies that may, on occasion, produce sales income.

The bottom line for businesses is that losses can be fully deductible. That would seem to be the major focus for persons actually in business (and doing all the financial things required for a business to succeed). Hobby losses can only be declared up to a limit.

The concern for people attempting to run a business is to make certain that they are keeping the financial records and doing the planning that any business requires. There is unlikely to be any
financial benefit for someone who tries to run a business as if it were a hobby.

If ham radio is a hobby, which for most of us it is, your income from sales of gear should not be a problem Federal tax-wise. State rules on sales and related taxes will vary, but I very much doubt that any state which collects hobby sales taxes will have the resources required to enforce such. It would cost an economically-stressed state a lot of money to try to collect hobby-related sales taxes.

Wealthy states with huge budgets don't enforce sales tax requirements. They get their income via significant, highly-productive, income tax legal machinery.
« Last Edit: March 19, 2021, 10:12:25 AM by W6MK »
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KA4ETV

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Oh boy I was wondering about this. Ive got a ton of studio equipment, ham radio equipment, etc. Was thinking about selling some of the inventory. Better stick to hand to had or ham fests. Im still spry enough to meet guys face to face. I refuse to pay taxes on personal private possession transactions. This is just more government overreach. Anyone that can justify this is not thinking clearly.
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WO7R

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Quote
This is funny. Have any of you heard of Cryptocurrency?  Impossible to trace

The money may be impossible to trace, but the transaction itself might not be.

If you are advising people not to report income, you're inviting them to be the next Al Capone.

Read up on how they nailed him before you advise people to try and hide economic activity.
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WO7R

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Anyone that can justify this is not thinking clearly.

Nice magical thinking you have going there.

The tax laws are a mess and they do things that defy your intuition or mine, but that doesn't exempt you from following them.

You probably won't get caught, and they probably will not prosecute you for small sums, but there's a lot of guys in jail that relied on probably.

As far as the Feds go, you'd almost certainly have to be making net money on the buying and selling -- that wouldn't apply to most of us.  Sales tax is another question and you'd have to know the local law to know what risks, if any, you are running.
« Last Edit: March 22, 2021, 07:29:08 PM by WO7R »
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KC8KTN

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Thanks Joey . I miss Donnie.
Nuff Said. Keeping it real. 73s
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K3UIM

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Thanks Joey . I miss Donnie.
Nuff Said. Keeping it real. 73s
???  ???  ???
Charlie
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Charlie. K3UIM
Where you are: I was!
Where I am: You will be!
So be nice to us old fogies!!

KA4ETV

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Quote
Anyone that can justify this is not thinking clearly.

Nice magical thinking you have going there.

The tax laws are a mess and they do things that defy your intuition or mine, but that doesn't exempt you from following them.

You probably won't get caught, and they probably will not prosecute you for small sums, but there's a lot of guys in jail that relied on probably.

As far as the Feds go, you'd almost certainly have to be making net money on the buying and selling -- that wouldn't apply to most of us.  Sales tax is another question and you'd have to know the local law to know what risks, if any, you are running.

You are truly hilarious. What a silly statement. Sales tax? Lord help us.
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KF5LJW

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The money may be impossible to trace, but the transaction itself might not be.
If you have cryptocurrency, you know how to make transactions impossible to trace.
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KC8KTN

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The crypto currency impossible to trace.
That is a FALSE STATEMENT.
cryptocurrency can be traced if it is online it can be traced.. Jeez
Wow know what your posting before you post it.
Nuff said.
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WB8PFZ

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Yes, got an email this morning. Not what I  was hoping to see when I opened my emails.:(
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WA2EIO

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This thread is 2 years old; this is old news and the limit now is $600.  It will not be implemented by the IRS until next year. (tax year 2023)   Keep careful records of your buy/sell transactions; write your federal representatives for a more reasonable limit.
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