Tom_in_CA
Elite Member
- Joined
- Dec 23, 2013
- Messages
- 20,842
Yup, I take a beating on taxes ....
I don't think that anyone in govt. would dispute your rationale. They're just human too. And they would probably be the first to agree that if a dude find $700 worth of gold, or sells DVDs he bought 8 yrs. ago, for $5 each on ebay, that ...... this is not a "business".
HOWEVER, the problem is that persons who are indeed making $$ (as a business of buy, sell, labor, etc....) will immediately jump on the bandwagon and say "It's just a hobby" or "I'm too insignificant, so why are you picking on me ?", etc....
For example, I own a street sweeper business. What's to stop me from saying that it's all for fun & games hobby, and shirk all taxes ? Do you see the "camel's nose in the tent" ? EVERYONE will jump on avoidances, if they can.
The $600 criteria for a 1099 is AGE-OLD. It's nothing new. It's just adapting to the digital age is all.
Technically, persons that made $$ at the flea market and yard sales selling flipped DVDs, or selling their own used furniture, etc.... were required to pay taxes (the honor system) on profits, even in the old days. And if you object and say : "By my expenses net a zero profit", fine then : You're welcome to do the long-form taxes, and start itemizing deduction write-offs.
In the old days of physical cash changing hands, it was easier for businesses to skirt their obligations. But now that everything's being done @ venmo, paypal, etc.... Uncle Sam is just trying to enter the 21st century.