[meteorite-list] 1099s coming?

From: batkol <batkol_at_meteoritecentral.com>
Date: Sat, 15 Jan 2011 06:52:14 -0600
Message-ID: <4D6333FEC7244D5D814EAD671472308E_at_batkolPC>

i believe the 1099 rule included in the new health care bill is already in
the process of being revised.

"Don't Panic!!!!"
          Douglas Adams "A Hitchhiker's Guide to the Galaxy"

enjoy the weekend. stay warm and take care
susan


----- Original Message -----
From: "Martin Altmann" <altmann at meteorite-martin.de>
To: <meteorite-list at meteoritecentral.com>
Sent: Saturday, January 15, 2011 6:12 AM
Subject: Re: [meteorite-list] 1099s coming?


Hi Richard,

so you'll get a positive input from me: World will keep spinning around.

Say I, from a country with a dues&tax yoke more than twice as heavy as in
USA
and with a Kafkaesque bureaucracy, the country with - lonely world record -
with more than 70,000 single and different tax regulations.

I don't know, in the countries I know there is a distinction between private
sales and commercial sales regarding taxation.
Hence between collectors sales and small (and normal) business sales.
With different exemption levels.

Little example, in Germany, there it is decisive for a sale reckoned among
business (meteorite "dealer") or private activity (meteorite "collector"):
The intention to make a profit, the frequency a seller sells items, the
time-span between a good was acquired and sold.
Hence, if you throw here and there a meteorite into ebay, then it's a
tax-free private sale, relatively independently from the result. As well if
you sell your whole collection at once, which you have built up over the
years or which you have found in your attic.
On the other hand, if you set up every two weeks a meteorite on ebay or if
you use the 1-AD-per-week-rule on the list; if you buy a meteorite on a show
or from a dealer, planning to slice it and to sell some of the slices (and
let it be only for refinance your collection) or if you buy a specimen to
resell it the same year,
then it is a business activity and the profit is added to your income, on
which you have to pay your common taxes.
(and if you have a turnover of more than 23.400$ meteorites sold per year,
you have to pay value-add-tax on your sales & if you have an annual profit
of >31.400$, you have to pay also business tax).

In Switzerland, I heard, it's easier, there you have simply a free allowance
of a certain height, wherein you can declare sales of collectibles. On
everything more, you have to pay tax.

How the regulations are and whether there are similar distinctions in USA -
I don't know them, but I'm curious.
Does anyone know them?

If yes, then I guess, that new regulation won't be that dramatic, but only a
little inconvenience for the private ebay seller, to print out another sheet
of paper, just like he prints the address label of the buyer.
The professional seller however, is already documenting each of his sales,
hence no change for him/her.

Phony 250,000$ meteorites, Linton, I guess, won't disappear. Such meteorites
become taxable only if they are really sold and not when they're offered.
And honestly, when such a lunar or Martian with alien blood cells found in
the backyard of the offerer ever was sold?

Well, and in the end, I think it would be somewhat unfair, if your hot dog
seller has to pay on each sold hot dog all the taxes, but a meteorite
collector, who sells meteorites for generating money and profit none,
wouldn't it?

Skol!
Martin



-----Urspr?ngliche Nachricht-----
Von: meteorite-list-bounces at meteoritecentral.com
[mailto:meteorite-list-bounces at meteoritecentral.com] Im Auftrag von Richard
Montgomery
Gesendet: Samstag, 15. Januar 2011 02:15
An: 'Meteorite-list List'
Betreff: [meteorite-list] 1099s coming?

Hello List...

Potential legislation mandating the issuance of 1099s to all documented
transactions, and obviously those tied with a digital/cyber signature, has
promted me to write this. I don't know the bill's name, but we've all heard

about it, and the implications. From what I understand, transactions
between any and all entities that exceed $600/year and/or each transaction
will mandate the generation of the issuance of a 1099 to all parties.

I woke up to this fact when I heard that eBay will potentially be issuing
mandated tax-consequence 1099s to all who participate at that level. I
can't imagine the nightmare logistics, but can certainly imagine the impact
of on-line transactions if this legislation is actually passed.

It stands to reason that all cyber transactions will be subject to this
imposition, including private trades and sales though this very List.

So, naturally, I'm putting the subject to us all to consider. I hope to get

some input, positive and/or negative, to whether my issues are valid. So,
please chime in. Fortunately, through this List I've made some contact with

people I trust, although haven't yet met.

Please advise...

-Richard Montgomery

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Received on Sat 15 Jan 2011 07:52:14 AM PST