Not quite. The meme is referencing a new law that targets platforms when the money is sent as a payment. So, for example, if you Venmo your roommate 2k over a year for utilities, your roommate is fine unless you mark it as for a vendor (there’s a little toggle whose exact text I forget). This meme is making that joke.
That’s strange that they allow the sender to do that. The way it was when it first started is that everyone got the 1099-k over the $600, even for personal business.
I sell a lot on ebay so I have to deal with this, but I usually have expenses like shipping to deduct. It’s a pain because I also sell personal items, so as long as I can show my basis in the item I can deduct it. This becomes difficult in certain situations. I bought factory alloy wheels for my car and sold the steel wheels for around $50/ea plus shipping. What is my basis in the wheels? It’s part of my car technically, but what percentage of the purchase price of the vehicle was wheels? I just didn’t bother trying to deduct that.
I do a lot of con/fair/vendor stuff and support. I have heard (but never done because that’s illegal) that among friends it’s very common to not check that flag to save those friends some headache. It’s also a really good way to get scammed if you do it for strangers on the internet.
I suspect that platforms push it down to the users to reduce their compliance burden. Why make life better for your end users by spending some money when you can just make life more complicated for small businesses by having them own everything even the things they don’t know about?
Yeah, but it’s not income if it’s a gift.
Not quite. The meme is referencing a new law that targets platforms when the money is sent as a payment. So, for example, if you Venmo your roommate 2k over a year for utilities, your roommate is fine unless you mark it as for a vendor (there’s a little toggle whose exact text I forget). This meme is making that joke.
That’s strange that they allow the sender to do that. The way it was when it first started is that everyone got the 1099-k over the $600, even for personal business.
I sell a lot on ebay so I have to deal with this, but I usually have expenses like shipping to deduct. It’s a pain because I also sell personal items, so as long as I can show my basis in the item I can deduct it. This becomes difficult in certain situations. I bought factory alloy wheels for my car and sold the steel wheels for around $50/ea plus shipping. What is my basis in the wheels? It’s part of my car technically, but what percentage of the purchase price of the vehicle was wheels? I just didn’t bother trying to deduct that.
I do a lot of con/fair/vendor stuff and support. I have heard (but never done because that’s illegal) that among friends it’s very common to not check that flag to save those friends some headache. It’s also a really good way to get scammed if you do it for strangers on the internet.
I suspect that platforms push it down to the users to reduce their compliance burden. Why make life better for your end users by spending some money when you can just make life more complicated for small businesses by having them own everything even the things they don’t know about?
There’s so many accounting rules it’s too difficult to know what’s what.