GS & IRS $600 rule

[Suppressed Poet]

What annoys me in this is how to explain to IRS that the magic horn I sold in GS4 wasn't profit because I acquired it by trading some magic shoes for it a year earlier. Do you think the auditor will understand?

The IRS doesn’t really care where the income came from, including illegal activity, as long as you report it on a 1040.

[Teveriel]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?

[Lavastene]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?

Correct.

Now, all the tickets I sold on Stubhub are a different matter.

[Teveriel]

Correct.

Now, all the tickets I sold on Stubhub are a different matter.

Big oof.

[Methais]

It does seem rather petty, especially considering that short of large somes of money, collecting is going to be a money losing proposition. On the other hand, the IRS has always assumed that your money coming in is income. What I don't understand is, why bother? Next thing you know they'll be after the kids who shovel my sidewalk for 25 bucks.

You mean they haven't already shut them down for not having a driveway shoveling permit?

[Tgo01]

From irs.gov on the topic: "Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable."

Isn't it standard practice here for buyers to mark our payments as gifts/F&F? Assuming your buyers are doing that, I think you're good, yeah?

Who knows? Something tells me if it were that simple to avoid this rule then everyone would do it.

[Tgo01]

What annoys me in this is how to explain to the IRS that the magic horn I sold in GS4 wasn't profit because I acquired it with silvers a year earlier. How would I even prove that it isn't income now. Do you think the auditor will understand?

And that's part of this issue for this community in particular. If someone receives 20k from people during DR, but they spent 17k on the SimuCoins, then they really only earned 3k in profit, but the IRS is going to see 20k and will expect that to show up on their tax return as income unless the person can prove it wasn't all income. This is such a clusterfuck.

[Silvanostar]

guess we're going back to money orders

[Rolis]

This tax policy going into effect for 2023? Or retro active to 2022?

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[Rolis]

This tax policy going into effect for 2023? Or retro active to 2022?

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Oh, ignore. Video title says 2022.. I think I found my answer

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