[meteorite-list] 1099s coming?

From: Yinan Wang <veomega_at_meteoritecentral.com>
Date: Sat, 15 Jan 2011 11:43:15 -0600
Message-ID: <AANLkTikQc4-E7fM-Y7r-cgMUZCyMmEwo=p5DUKfJ+t2K_at_mail.gmail.com>

The new 1099 rules are not set to start until 2012 and before that the
IRS still needs to issue its proposed regulations and hold public
hearings.

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/

So I agree with Susan; don't panic until we know what the rules are.

Another interesting rule change which does go into effect this year is
the 1099-K (which was part of the 2008 stimulus). Which affects
merchants using paypal if they have more than $20000 in payment AND
have more than 200 transactions in a year.

http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2010/9/1283997077.html

- YvW

On Sat, Jan 15, 2011 at 6:52 AM, batkol <batkol at sbcglobal.net> wrote:
> 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 12:43:15 PM PST