|
|
Post by EmRR on Jan 9, 2022 9:02:30 GMT -6
I had some cash economy today…..but it’s all $100’s, which you can’t do anything with and banks track when you deposit, so, still not underground. FWIW. You're in NC too aren't you? I just used a $100 bill at Printworks Bistro no problem. Save those and go out for a nice dinner  Man I haven’t seen anyone willing to take a 100 in years. |
|
|
|
Post by Tbone81 on Jan 9, 2022 11:17:29 GMT -6
Maybe it’s because I’ve always been in big cities but I’ve never had trouble spending a $100 bill. And if banks track deposits of $100 bills that’s news to me, as far as I know they only track deposits over $10k, with some discretion over deposits they deem suspicious.
|
|
ericn
Temp
Balance Engineer
Posts: 15,951 
Member is Online
|
Post by ericn on Jan 9, 2022 15:05:14 GMT -6
Exactly. If you plan to move it regularly, you have to maintain accounting. You'd show that you are being taxed on the profit. If you are just making sure you haven't lost money, I don't think you'd pay anything. That’s a nightmare. The guys who sell small business accounting software are going to clean up. What this really forces the guy with a side hustle to do is keep track of his books. Now the funny thing is most guys I know across many industries is that they did better on taxes because they started paying attention. Now having got burned early in my gear pimp days by vendors who liked to do gear based compensation, sorry I don’t have a lot of sympathy ( how about when the manufacturer rasises the MSRP 3 month later putting you over your carefully crafted $599.99 limit ) I think about 1/4-1/3 of my income was all on 1099’s. What this might do though is make the local cash economy more attractive, cash is still untraceable so by used by local? |
|
|
|
Post by mike on Jan 9, 2022 16:38:46 GMT -6
What this might do though is make the local cash economy more attractive, cash is still untraceable so by used by local?
Agreed. I'm sure the Reverb's etc of the world are doing everything they can to get the govt. to raise the $600 limit, as the rule change has to drive a good number of sellers back to FB, Craigslist etc for local cash sales thereby reducing Reverb's gross by the end of the year significantly I'd think.
|
|
|
|
Post by sirthought on Jan 12, 2022 12:46:47 GMT -6
I've got a scan app on my phone that will scan a receipt and I can send it anywhere for archive and make it OC searchable. Very handy for record keeping.
|
|
|
|
Post by jacobamerritt on Jan 12, 2022 14:06:20 GMT -6
A question I have is- How does Venmo know if the 600 payment I got is a friend paying me back for hotel rooms, or a band paying me for a session?
|
|
ericn
Temp
Balance Engineer
Posts: 15,951
Member is Online
|
Post by ericn on Jan 12, 2022 15:20:33 GMT -6
A question I have is- How does Venmo know if the 600 payment I got is a friend paying me back for hotel rooms, or a band paying me for a session? Most likely you get a 1099 on all of them. |
|
|
|
Post by Chad on Jan 12, 2022 15:26:51 GMT -6
A question I have is- How does Venmo know if the 600 payment I got is a friend paying me back for hotel rooms, or a band paying me for a session? Most likely you get a 1099 on all of them. I believe you're right ericn – this is exactly what will happen. Then, it's up to us to show a paper trail with our accountants. Just more of a hassle which is why I entered that video into this thread days ago – to help bring awareness. Chad |
|
cj
Full Member
Posts: 31
|
Post by cj on Jan 12, 2022 16:30:34 GMT -6
A question I have is- How does Venmo know if the 600 payment I got is a friend paying me back for hotel rooms, or a band paying me for a session?
The only way that Venmo can tell is by the way the "Paying for a good or service" toggle is set on the sender's screen. If they set the toggle to Yes, then the amount will show up on your 1099K. If it is set to No, then it is considered a friends and family payment and won't show up on your 1099K.
|
|
ericn
Temp
Balance Engineer
Posts: 15,951
Member is Online
|
Post by ericn on Jan 12, 2022 16:40:42 GMT -6
A question I have is- How does Venmo know if the 600 payment I got is a friend paying me back for hotel rooms, or a band paying me for a session?
The only way that Venmo can tell is by the way the "Paying for a good or service" toggle is set on the sender's screen. If they set the toggle to Yes, then the amount will show up on your 1099K. If it is set to No, then it is considered a friends and family payment and won't show up on your 1099K.
In theory you would probably be correct, but here is the thing, they don’t trust us to report transactions so the government is going to have them issue 1099’s do you really think they trust us not to toggle a simple switch that says this really isn’t a taxable transaction without proof? |
|
|
|
Post by gravesnumber9 on Jan 12, 2022 17:02:34 GMT -6
The only way that Venmo can tell is by the way the "Paying for a good or service" toggle is set on the sender's screen. If they set the toggle to Yes, then the amount will show up on your 1099K. If it is set to No, then it is considered a friends and family payment and won't show up on your 1099K.
In theory you would probably be correct, but here is the thing, they don’t trust us to report transactions so the government is going to have them issue 1099’s do you really think they trust us not to toggle a simple switch that says this really isn’t a taxable transaction without proof? Awww cmon man. I’m good for it. I’ll toggle it, I swear I will!! Haha |
|
cj
Full Member
Posts: 31
|
Post by cj on Jan 12, 2022 17:05:24 GMT -6
The only way that Venmo can tell is by the way the "Paying for a good or service" toggle is set on the sender's screen. If they set the toggle to Yes, then the amount will show up on your 1099K. If it is set to No, then it is considered a friends and family payment and won't show up on your 1099K.
In theory you would probably be correct, but here is the thing, they don’t trust us to report transactions so the government is going to have them issue 1099’s do you really think they trust us not to toggle a simple switch that says this really isn’t a taxable transaction without proof? I should have mentioned that my previous answer comes directly from Venmo. So that is how they're doing it at the moment.
But I certainly understand your concern. I would keep good records of any and all transactions just in case I had to defend myself in an audit. In the end, this is going to be a record keeping nightmare for the average Joe. I wouldn't be surprised if Congress changes their mind in a few years and moves the amount back to $20,000 or something more reasonable.
|
|
|
|
Post by Bat Lanyard on Jan 12, 2022 20:55:10 GMT -6
I wouldn't be surprised if Congress changes their mind in a few years and moves the amount back to $20,000 or something more reasonable.
It wasn't Congress as a whole that stuffed this into a bloated spending bill and passed it. Tell us about some gear, cj and how you're making music these days? |
|
|
|
Post by the other mark williams on Jan 12, 2022 22:54:29 GMT -6
I wouldn't be surprised if Congress changes their mind in a few years and moves the amount back to $20,000 or something more reasonable.
It wasn't Congress as a whole that stuffed this into a bloated spending bill and passed it. Tell us about some gear, cj and how you're making music these days? The previous administration wanted this change, as well, so this isn’t purely a D vs. R thing. |
|
cj
Full Member
Posts: 31
|
Post by cj on Jan 12, 2022 22:59:01 GMT -6
I wouldn't be surprised if Congress changes their mind in a few years and moves the amount back to $20,000 or something more reasonable.
It wasn't Congress as a whole that stuffed this into a bloated spending bill and passed it. Tell us about some gear, cj and how you're making music these days? Thanks @batlanyardbat . I'm a long time reader of this forum and I have truly learned a lot from all the great conversations and people! I really do like the community here. However, I'm relatively new to audio recording and just trying to learn all that I can. I have a few pieces of gear that I use to record musicians in the family. Due to my day job, I felt this was the first conversation that I could meaningful contribute to. But now that I'm registered, I'll try to participate more often in other gear oriented threads too. Thanks. |
|
|
|
Post by the other mark williams on Jan 12, 2022 23:06:17 GMT -6
I hate to say this, but honestly the most shocking thing to me in this whole thread is finding out how many folks here weren’t tracking and reporting this stuff already. I realize I may be an outlier because my late father was a CPA for 40 yrs, but seriously, we’ve always been required to report gear sales income as income on our Schedule Cs on our tax returns. Yes, keeping up with this stuff is a major headache, but legally speaking, it’s always been required. It’s why I’m usually stressed out for a couple weeks in late March and/or early April every year, getting all the ducks in a row.
Just wait ‘til you guys encounter self-employment tax.
|
|
|
|
Post by jacobamerritt on Jan 12, 2022 23:47:02 GMT -6
The IRS ended 2021 with a 25% reduction in staff - AND 25 MILLION tax returns that still havent been processed! And now they're going to make tax filings even more complicated to sift through and review? Seems like a fool's errand.
|
|
|
|
Post by svart on Jan 14, 2022 12:42:24 GMT -6
I just find it funny that the same folks who got us 30 Trillion in debt, can't/won't balance a budget, and have all become millionaires in office somehow want to keep tabs on my bank account to make sure I'm not cheating them.
|
|
ericn
Temp
Balance Engineer
Posts: 15,951
Member is Online
|
Post by ericn on Jan 14, 2022 13:05:44 GMT -6
I just find it funny that the same folks who got us 30 Trillion in debt, can't/won't balance a budget, and have all become millionaires in office somehow want to keep tabs on my bank account to make sure I'm not cheating them. How do you think thy became millionaires? |
|
|
|
Post by Chad on Jan 14, 2022 14:16:04 GMT -6
I hate to say this, but honestly the most shocking thing to me in this whole thread is finding out how many folks here weren’t tracking and reporting this stuff already. I realize I may be an outlier because my late father was a CPA for 40 yrs, but seriously, we’ve always been required to report gear sales income as income on our Schedule Cs on our tax returns. Yes, keeping up with this stuff is a major headache, but legally speaking, it’s always been required. It’s why I’m usually stressed out for a couple weeks in late March and/or early April every year, getting all the ducks in a row. Just wait ‘til you guys encounter self-employment tax. I get what you’re saying, Mark. :-) Being self employed since 1996, I always do as you’ve stated with my books. My point is when these tools are used for family & friends and the extra work we must do by “explaining” 1099’s that should have been avoided otherwise. Because of this... My solution is to completely avoid these tools other than using them for business. I don’t want any 1099’s on money transfers that should not have been flagged as business to begin with. For personal transfers with family, it’s back to cash & paper checks for me. |
|
|
|
Post by the other mark williams on Jan 14, 2022 14:36:37 GMT -6
I hate to say this, but honestly the most shocking thing to me in this whole thread is finding out how many folks here weren’t tracking and reporting this stuff already. I realize I may be an outlier because my late father was a CPA for 40 yrs, but seriously, we’ve always been required to report gear sales income as income on our Schedule Cs on our tax returns. Yes, keeping up with this stuff is a major headache, but legally speaking, it’s always been required. It’s why I’m usually stressed out for a couple weeks in late March and/or early April every year, getting all the ducks in a row. Just wait ‘til you guys encounter self-employment tax. I get what you’re saying, Mark. :-) Being self employed since 1996, I always do as you’ve stated. My point is when these tools are used for family & friends and the extra work we must do by “explaining” 1099’s that should have been avoided otherwise. Because of this... I plan to completely avoid these tools other than using them for business. I don’t want any 1099’s on money transfers that should not have been flagged as business to begin with. Sure, understood, Chad. If cj is correct, then Venmo (and likely PayPal, as they're essentially the same company) are handling this by only issuing a 1099 for sales transactions that were tagged as being for a good or service. So as long as you tag transactions as being "friends and family," it shouldn't trigger a 1099. That's the appropriate way to tag transactions, anyway, and it's the appropriate way to account for all this. |
|
|
|
Post by EmRR on Jan 25, 2022 22:46:35 GMT -6
|
|
