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PostPosted: Thu Jun 24, 2021 3:30 pm    Post subject: Reply with quote

I don't recall much talk about sales tax in the forum other than we don't like them. Technically for a 1099 if you pay someone $600+ you have to send them a 1099 and then something changed last year that I didn't pick up on when I went to make out my cleaning lady's 1099 MISC. It has changed to a different form called an NEC I think it was, which of course, I didn't have as I had requested 1099 to be sent to me. So I was late filling it out and my son had to BUY the forms at Staples and the only package that they had left cost $50!!! I've go to be sure I don't run into that this year. For years I had a cheap subscription to Money magazine so I could keep up with tax law changes that as a landlord, business owner, hiring private help etc. that I had to keep up with. Early in the pandemic I think it was they folded except for online which I don't do. I lost two magazines last year, the other being Vogue patterns. Anyhow, with not getting the magazine anymore, I lost my best source for me, to keep up with new stuff, like the NEC. Now I am going to be normal people as we sold the rental property, one of the businesses is dead, and this one is closing.

Amazon sent me two different 1099 with wrong amounts on them so I ignored them and went by my numbers. I am going to write Amazon a letter about it when I have time. But I didn't get a 1099 from PP although I am sure that I had at least 200 sales here, but they were split between PP and Stripe pretty evenly. I will not miss most of this let me tell you.

A couple of years ago, I noticed that one of our tax registrations had the wrong address on it. So I notified PA with the right one. They chewed me out on paper and told me that I couldn't collect PA sales tax anymore which would have effectively put us out of business as my husband has been self-employed since sometime in his 20s plus this business. So I ignored them and send the appropriate sales tax in when it is due and you know what? NO ONE has written to us and said that we aren't supposed to be collecting sales tax so why are you doing it? They just take the money every year, and they never did update our paper that we have to have although the info on their website is correct which is how we pay the taxes.

You would think that if a person discovers that an error has been made that they don't throw out the baby with the bath water. We had been regularly paying the taxes before and since. It is crazy.

BTW White Pickets. How long have you been selling here? I noticed that your store hasn't been updated since Dec 2019 and this was your first post. If you are a newbie, welcome. Sorry I couldn't really help with the tax question.

As to selling your own property as if it was a yard sale, you shouldn't really be paying income (not sales) tax on it as your Cost of Goods sold would generally be higher than what you sold them for unless something increased in value. Somethings like books that you buy at full price at the book store and then sell online to someone else and it can be resold several more times until dumped at the local FOL sales and then eventually the thrift store and then picked up and resold again. That book, assuming it always lands in a state that charges sales tax on books, the state(s) will have collected many multiple sales tax on it and will continue to until someday it becomes a valuable book and is sold for way more than the original prices and the sales tax then is through the roof.
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PostPosted: Mon Jan 10, 2022 7:02 am    Post subject: Reply with quote

Beginning with tax year 2022, the number-of-transactions threshold (200) is eliminated entirely and the $20,000 gross-payments threshold is reduced to $600 for third party network transactions. The rules for payment card transactions remain unchanged. You should receive a 1099-K from all PSEs that process credit card, debit card, or prepaid credit card payments on your behalf and from any PSE that processes more than $600 in third party network transactions.
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