Are sales/purchases of motos and accessories >$600 included?

[John Ranalletta]

IOW, I'm buying a RT from a member.  Am I required to issue a 1099 to him and to the IRS?

 

https://justthenews.com/politics-policy/irs-warns-taxpayers-new-600-threshold-reporting-third-party-payments?utm_source=sf&utm_medium=social&utm_campaign=twjs

[John Ranalletta]

Just got a note from my accountant to wit:

 

In the past 1099 requirements did not apply to individuals making payments for personal purposes.  I’m not aware that that has changed.  It would be a nightmare if it has.  I’ll double ck the latest instructions if they’re available and confirm for sure.
 

 

Stand by

[9Mary7]

[9Mary7]

Now that I've finished , I will say that cash remains the friendliest way to do business.

Still the King.

 

(for all y'all who wondered what those 87,000 new IRS jackboots were gonna do, I think John is onto it!)

 

[Skywagon]

I’ve posted before I have a relative who is IRS regional director. He said no. He said what they are trying to improve on which is the original intent of 1099 is on-line service business’s that pay no tax yet their sole source of income is payment for services from companies who take an expense for the service. One example he gave me was an airline who was paying several contractors, yet the contractors reported no income. 
 

When I first retired I was on two Boards and received compensation. I was sent a 1099 from both and filed on my taxes

[Joe Frickin' Friday]

On 11/26/2022 at 10:17 AM, John Ranalletta said:

IOW, I'm buying a RT from a member.  Am I required to issue a 1099 to him and to the IRS?

You’re buying used goods from a seller who paid for them with after-tax money.  AFAIK the seller doesn’t need to pay tax on the proceeds, although you’ll still need to pay sales tax when you register the bike in your name.

[Skywagon]

13 hours ago, FinleyBuchanan said:

if you're buying an RT from a seller for more than $600, you may need to issue a 1099 to both the seller and the IRS

Not correct

[Joe Frickin' Friday]

39 minutes ago, Joe Frickin' Friday said:

AFAIK the seller doesn’t need to pay tax on the proceeds,

 I’ll amend my answer to say that if the seller is engaging in a hobby or business in which he buys used bikes, patches them up and then sells them for a net profit, he’ll need to pay income tax on that profit - but AFAIK it’s his responsibility to document his income, not yours.  

[Skywagon]

36 minutes ago, Joe Frickin' Friday said:

I’ll amend my answer to say that if the seller is engaging in a hobby or business in which he buys used bikes, patches them up and then sells them for a net profit, he’ll need to pay income tax on that profit - but AFAIK it’s his responsibility to document his income, not yours.

 

Correct.