Facebook collecting Tax data?

shelby27604

shelby27604

Well-Known Member
Joined
Jun 6, 2013
Location
Efland NC
Like many of you, my facebook access is actually stolen from my wife.....BUT, while browsing marketplace this AM, a pop-up alerted me to the fact that facebook will begin collecting TAX information!

Who isn't excited about the company that scrapes all of your personal data also having your personal tax information! Get ready for the IRS to come looking for their due from personal items you sell on the MP.

I wonder if Craigslist will be compelled to do the same or if facebook is just gearing up for new regulations.

Maybe this will bring craigslist back from the brink of extinction.
 
shelby27604 said:
Get ready for the IRS to come looking for their due from personal items you sell on the MP.
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All online platforms are going to require this. New Biden IRS regulations require IRS notification for aggregate sales over $600.
 
I dont understand the hysteria here.
Selling personal items isnt income, no matter how many you sell. Unless you sell for more than you paid.


Do I have to report personal items that I sold?​

Updated 1 week ago
Only if you sold it for more than what you originally paid.
Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report. There's also no loss. The IRS won't let you deduct losses on personal items.
Here's an example: you purchased a vintage nut grinder for $5 in 1972 and recently sold it on eBay for $75. You'd have to report the $70 profit as an investment sale.
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Ron said:
I dont understand the hysteria here.
Selling personal items isnt income, no matter how many you sell. Unless you sell for more than you paid.
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Who decides if I have sold it for more than I paid? If I buy a CJ for $3k today, put tons under it and swap in an LS motor and sell it for $10k in a month/year/decade how does the IRS view that sale?

As a private sale, do I get to subtract my labor costs? If it is deemed taxable income, can my poor financial decisions also be a deduction in the event I lose money?

I typically drive beaters, spend tons of man hours making them presentable and 100% functional. 6-18months later I get bored (or distracted by the next shiney vehicle) and sell it. Often for "more than I paid"......but am I making profit....
Not really. I would bet uncle Sam would require every receipt for every part I replaced to justify not taxing the sale.
 
"Tax the rich" ....right? They're always the ones buying/selling on marketplace. Oh wait.
 
Ron said:
I dont understand the hysteria here.
Selling personal items isnt income, no matter how many you sell. Unless you sell for more than you paid.
Click to expand...

The hysteria is caused by the new regulations requiring IRS notification. You're going to get a 1099 from FB/CL/Ebay/etc.
 
Same with PayPal. If money is sent as friends and family it doesn't count towards the $600 total, so I have already started only accepting money as F&F. If they don't want to pay F&F I don't care enough to sell whatever it is they want.
 
shawn said:
All online platforms are going to require this. New Biden IRS regulations require IRS notification for aggregate sales over $600.
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this. It isn't Favebook's fault, its a new regulation.

Also - it only applies if you use them for the actual sales portion (e.g. checkout).
 
shelby27604 said:
Who decides if I have sold it for more than I paid? If I buy a CJ for $3k today, put tons under it and swap in an LS motor and sell it for $10k in a month/year/decade how does the IRS view that sale?

As a private sale, do I get to subtract my labor costs? If it is deemed taxable income, can my poor financial decisions also be a deduction in the event I lose money?

I typically drive beaters, spend tons of man hours making them presentable and 100% functional. 6-18months later I get bored (or distracted by the next shiney vehicle) and sell it. Often for "more than I paid"......but am I making profit....
Not really. I would bet uncle Sam would require every receipt for every part I replaced to justify not taxing the sale.
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You aren't required to keep receipts just proof of cost. A credit card or bank statement will do that.
If you organize as a business then yes you can write off losses and bad decisions and labor. If you choose not to organize then no.
At that point it sort of becomes the Fuller conversation again.

shawn said:
The hysteria is caused by the new regulations requiring IRS notification. You're going to get a 1099 from FB/CL/Ebay/etc.
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Right. a 1099-MISC. Ive gotten one nearly every year for the past ~10. You offset that income with bonafide expenses. Its not that hard, even turbo tax will do it for you.

Tacoma747 said:
Same with PayPal. If money is sent as friends and family it doesn't count towards the $600 total, so I have already started only accepting money as F&F. If they don't want to pay F&F I don't care enough to sell whatever it is they want.
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This is one of those situations where when the .gov gets their ish together you will be worse off because you "outsmarted" the decision. If its a gift, then by legal definition you cant offset any portion with expenses and the whole sum will be taxable as a capitol gain. If you had been doing it as a sale then you can offset against your cost basis.
 
Ahem.... And it's not just because I'm an a-hole.
Screenshot_20211228-101539~2.png
 
Also remember, hobby income is taxable only if it exceeds hobby expenses.
Which I'm pretty sure is none of us.
 
RatLabGuy said:
Also remember, hobby income is taxable only if it exceeds hobby expenses.
Which I'm pretty sure is none of us.
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Who actually sets the price value of that?
 
shelby27604 said:
The beauty of the government is that they make 100% of the rules....which makes this an easy question to answer!

Who doesn't love tracking expenses for your hobby!
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Smells like socialism. 🤢
 
RatLabGuy said:
this. It isn't Favebook's fault, its a new regulation.

Also - it only applies if you use them for the actual sales portion (e.g. checkout).
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I would argue if Facebook didn't fight it, then they are just as much to blame. Very few companies have the ability to sway public and governmental opinions like the social media succubus that is "Meta"
 
How would the Feds know how much I paid for a used something a year ago that I then sold on FB? I paid cash for said item.

FB is just a listing service. I meet up with the seller and pay cash. The feds/FB have no idea how much the item actually sold for.

eBay is different.
 
I would imagine it will be similar to how they assign a value to the vehicle I buy for their property tax value. The purchase price is irrelevant....if you have ever written off donations to goodwill, you are well aware that the government has teams of people dedicated to telling you what your items are worth.
 
shelby27604 said:
I would argue if Facebook didn't fight it, then they are just as much to blame. Very few companies have the ability to sway public and governmental opinions like the social media succubus that is "Meta"
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What would they fight? Its a law.
You can't expect one company has a duty to follow laws and another to not just bc they are big and powerful. Thatst he opposite of what we want... right?
 
benXJ said:
FB is just a listing service. I meet up with the seller and pay cash. The feds/FB have no idea how much the item actually sold for.

eBay is different.
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Eggs zachary.
It only applies if you are using their Checkout service. E.g. selling directly through them.
 
RatLabGuy said:
What would they fight? Its a law.
You can't expect one company has a duty to follow laws and another to not just bc they are big and powerful. Thatst he opposite of what we want... right?
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In this day and age every single major corporation has no concerns about fighting for anything that will undermine their corporate earnings. The majority of them have no concerns about backing a public policy if they believe it will advance their image to the end consumer.

The Zuk spends days on end Infront of Congress defending the deplorable things that company does in the name of capitalism.....I guess this one just bothers me more than most.

I get the death and taxes idiom.....but for a county that declared taxing tea as the last straw.....we seem to be making a lot of bad decisions lately.
 
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