Is the inflated Bike market finally crashing?

tonyride said:
My understanding is if you have the original sales receipt showing you didn't profit from the sale of the bike then you won't have to pay any taxes. The kicker is they're still figuring out the details of that. Yup, talk about a $h!t show. They roll out the law without figuring everything out first.
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Yep, that was exactly my concern. I have a metric ton of stuff that I purchased retail/used that right now I have no idea how to get rid of...
 
serviceguy said:
How is anybody dealing with the $600 rule on Paypal, Venmo etc. payments when selling their used bike? As much as I don't like the idea I may have to unload the inventory at some point...
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What @tonyride said - if you didn't "enhance" it, and you rode it, then there is no gain.

also, don't have people pay you via "product or service" just "friends and family" - they aren't reporting that.

This is to catch people who do ticket resale for profit, or have some sort of store, where they are selling
goods they made or enhanced (i purchased broken X and fixed it, then sold for profit)
 
The thing is, it's an accounting nightmare for a normal person.

Let's say you do buy a bike for $1k and then sell it for $700 through Paypal. You may not do friends/family because you're a stranger.

So then the government says you made $700, prove you didn't make money on it.

Now granted, I doubt there's much enforcement at the lower level. I'm sure I can do a couple transactions over $600 a year and the IRS won't care. But if I'm doing a ton of them it's clearly business transactions of some sort, or at least appears so.
 
Patrick said:
What @tonyride said - if you didn't "enhance" it, and you rode it, then there is no gain.

also, don't have people pay you via "product or service" just "friends and family" - they aren't reporting that.

This is to catch people who do ticket resale for profit, or have some sort of store, where they are selling
goods they made or enhanced (i purchased broken X and fixed it, then sold for profit)
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Supposedly the burden falls on you to prove that you did not buy to resell for a profit. A have a few turbos for my Eclipse that I purchased in various conditions (I have a new one, a rebuilt one etc.) at full retail price that I would not know how to justify if I were to sell them right now as I don't believe I have a receipt for them. The issue is that using any of those online payment methods widens greatly your potential market, and the risk of getting the shaft, hence the reluctance of buyers to pay in 'family and friends' mode...
 
serviceguy said:
Supposedly the burden falls on you to prove that you did not buy to resell for a profit. A have a few turbos for my Eclipse that I purchased in various conditions (I have a new one, a rebuilt one etc.) at full retail price that I would not know how to justify if I were to sell them right now as I don't believe I have a receipt for them. The issue is that using any of those online payment methods widens greatly your potential market, and the risk of getting the shaft, hence the reluctance of buyers to pay in 'family and friends' mode...
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Well they weren't free. And you can net purchases too. Bought wrong one, sold for loss.

I'd also say this is to catch service industry not claiming income.
 
PayPal froze my account until I agreed to the tax terms. I've bought and sold $$$$ of bike and automotive products this year. All goods and services. So you get the assurance your purchase is covered.

Never pay with friends and family
 
@jimvreeland this Hilltop email made me giggle. Don't you only carry Specialized bikes??
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did paypayl remove the friends and fam? I couldn't even find it sending money for a bar I just sent money for. But just added $1 for the fee for the dude.
I usually used Venmo now anyways.
 
THATmanMANNY said:
did paypayl remove the friends and fam? I couldn't even find it sending money for a bar I just sent money for. But just added $1 for the fee for the dude.
I usually used Venmo now anyways.
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Can't send it to anyone with a business account. So the option isn't there for them. That's possibly it?
 
I haven't sold anything for other than cash in person in a while. I have a pile of stuff I'd like to sell, but it's such a PITA these days I haven't bothered.

There needs to be more swap meets like the Spring and Fall events at Trexlertown. Cash only.
 
I've been preparing for the cash app fiasco all year. I created a Venmo business account in January. I'm not happy about the 3% processing fee. I know a lot of people who did not and just use their personal account for everything.

Where I'm completely stumped is with all the private transactions I've made. For example, I booked a house in VT and my buddies each sent me a few hundred dollars. There were actually a few trips so we're talking a couple thousand bucks. Then you have UBER, the bike part purchases, restaurant outings with friends and the occasional money transfers to family members. This must occur hundreds, if not thousands of times a day throughout the US. How the f&%$ is the IRS going to track and distinguish between all these transactions?
 
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