Happy New Year: $600 Federal Threshold for 1099 Reporting

First off, it's not hard if you buy a handful of coins a year but what if you literally buy thousands, and many of them in bulk? I collect coins for fun, and fun for me isn't getting home with my coins, opening up a spreadsheet, and spending the next 20 hours on data entry. And even if a person wanted to start now, they can't do anything about all the coins they bought before they realized this was going to be an issue. It's one thing if you're a professional dealer, but if you're just a collector who started buying coins just to collect and later decided to sell off some that you didn't want you can't be expected to have kept track of all of this. I realize some people seem to enjoy keeping these kind of detailed records but I can't think of a better way to ruin a hobby for me.

 

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Not sure what was so difficult to understand with my question? I've got 100's of coins from the days of my youth back in the 60's through 70's. I didn't save or possibly receive receipts back then.

I've been saving receipts for decades also. That still doesn't change the fact that I don't have receipts for a lot of my coins that predate the days of saving receipts.

 

Call me crazy, but ... I take it a step further by assigning the cost based on face value. For hypothetical example, assume I bought a proof set that had a cent, nickel, dime, quarter, half and dollar, for $6. Rather than assign $1 to each coin, I would divide the $6 total (600¢) paid by the face value total of $1.91 (191¢), resulting in an average cost of about 3.2¢ cents per 1¢ face value. This way the penny cost is 3¢, nickel cost is $16¢, dime cost is 32¢, quarter cost is 80¢, half cost is $1.60 and dollar cost is $3.20. I know this adds up to 11¢ over the $6, so then I usually take off a few cents from the higher value coins to make it add up to the original $6 total.

 

They really think every dime is theirs to do what they please with. In return we get??? I forget...

 

Good Lord. Gobbledygobbledness, that states nothing not already known by any person that has filled out a tax return.

As to the trust of and knowledge of accountants, the average accountant, and CPA, can not decipher the strict requirement's of the present IRS Ruling, never mind the intent of the changes by Congress that will take effect on 1 Jan. 2022.

Example of a conundrum concerning your commentary: the transfer of generational wealth by gifting, when it includes collectables, and how loss/profit is applied, and the physical possession issues. another conundrum: PMs, and base values vs. sale value and whether of not same has to be reported per the 1 Jan.2022 changes, and how PM is treated as a generational wealth transfer exchange, and whether or not it is held on a Schedule A and/or K Trust and whether or not it is considered an asset and/or applicable by SS recipients with no other source of income.

I....and just about any living breathing soul required to file a tax return.... could give so many other examples of what is and is not a required reporting system that would be triggered by 1 January 2022 changes that renders your statements as to what will and won't occur, that you maybe should consider rephrasing your statement to "I am not sure and I don't really get it".

I do know I have never in all my years had an accountant or CPA identify me or anyone else as "ya", in a discussion.

I am old. My mind wanders. But, I know stuff. Don't hit me.

 

Says alot about what part of the country ya are from.

 

Thank God.....

 

I think the same when I here "yous guys" or "ehh"

 

A horse is a horse of course unless your Mr. Fed.

 

That is clever. Good job.

 

Me and you are in the same boat.

 

Gifts ? Are kids supposed to pay taxes on birthday presents, Bar Mitzvah gifts, weddings, etc. ?

This is insanity.

 

Not happy about it. - Edited -

 

this "change" affects cash moving apps and websites like ebay and amazon and others, where people sell things and don't report income, or provide services and get venmo'd or squared or whatever the payment and don't report their side business income.

Plain and simple. this is exactly what it's for, catching the people that aren't paying their income tax and leaving a digital trail of it to follow.

estate tax and inheritance tax, I don't know about every local jurisdiction, but federally, it's assets topping $11.4 million ($22.8 million for a couple) and it's probably higher for this year. the top rate is 40%, the average rate people pay is 17% and it only matters if the inheritance or estate tops the cut off which is above $10 million for an individual.

Now if you get money, it's income, even if it's a gift, a lottery or gambling win, you benefited financially from the money, it's "unearned income" and it's supposed to be reported. the casino has to report wins over $1199 federally, so you must put that in your taxes, but you are SUPPOSED to report even smaller gains, and cancel those against losses, like you would with a reported gambling win of unearned income, you can claim losses against wins.
the annual exclusion for gift tax is $15,000 for 2021 and $16,000 for 2022, you are still supposed to report this income, even if tax isn't owed on it and it's under the threshhold, if you are doing your taxes correctly.

I don't understand it all, I'm not an accountant, but I have a good grasp on what is or isn't happening, and yes, if you want a country and the country to not own enterprises in order to generate revenue and kick crumbs down to the people, then there has to be an income tax to fund the government and all services, buses, trains, planes, roads, bridges, parks, water, electricity, dams, phones, mail, parks, police, fire, hospitals, schools, military, ect ect. ect. it's got to be paid for some way or none of it exists, so either it's paid through taxes, or the government owns everything and breaks everyone off a piece for their labor.

 

I'm libertarian and any comment I make regarding what I think about all this is likely to get me in trouble.

What I will say is that there's always been SOME for of this that people have either largely ignored or been ignorant too. I think the most likely outcome is that they're going after the people who are side hustling and not reporting it.

JMHO without getting political about it, lol

 

The Federal government. It’s bankrupt and desperate.

 

You are a little off concerning a gift. This may explain it better.
https://www.thebalance.com/how-is-the-gift-tax-calculated-3505674