This has been reversed at the last minute.
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- The IRS announced it won’t require platforms such as Paypal and Venmo to issue a tax when a user’s business transfers exceed $600.
- The pre-2022 threshold of 200-plus transactions worth an aggregate above $20,000 remains in place for now.
fuck yesssss
I’m at $19,323. Very good evening for me.
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Wait does this apply to reverb
Yes, will apply to any company that had to follow the new ruling. I see a sudden flood of used equipment going up for sale on Reverb soon hah.
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Basically yeah.
You have until end of day December 31st, to close those sales, otherwise it will be under whatever rules applied with the 2023 tax year. Right ?
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This is why I have a good CPA on retainer as the tax laws change and too much to know as a non accountant!
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Right. There seems to be a lot of push to increase the limit from $600 though.
Well that was left-field aggressive, i don’t get a choice or much of a say in any of that under our economic system.
Just a heads-up, I got all excited about not having to deal with this this year, but it turns out several big states still have the 600 dollar single transaction threshold… Including mine. You should get an email from reverb if you’re affected.
so some states are taking a cut of that income, but federal isn’t? weird. I thought it was only going to be taxed at the federal level anyway. I guess the good news (for now) is at least state level taxes are lower…?
only info I’ve found on it so far is that Vermont, Massachusetts, Virginia and Maryland are all functioning with the $600 threshold. but this stuff seems so fluid/unclear so maybe that’s not even correct…
Yep, it’s super confusing. I also took a loss on basically every sale I made so I need to figure out how to mark this entire thing as non-taxable income…
Here’s the full list of states(with their thresholds) that aren’t following the 20,000 threshold, from the reverb faq
- Alabama: $1,500
- Arkansas: $2,500
- California: $600
- District of Columbia: $600
- Illinois: $1,000 and 4 transactions
- Maryland: $600
- Massachusetts: $600
- Mississippi: $600
- Missouri: $600
- New Jersey: $1,000
- Vermont: $600
- Virginia: $600
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yeah the “super confusing” part of it is, I thought, why they were putting this on hold for a bit. i.e. to wait until better guidance was out there. so they know what to expect from you, and you know how to file.
so annoying. and honestly that’s the biggest thing it’ll likely be: annoying to track and file extra BS. how often do you profit from selling gear? and even if you do, it’s typically a small amount they won’t get much from anyway.
FFS. My state won’t keep the roads in good condition, but is happy to take my money even though the federal guidelines changed for 2022.