new 1099-K rules

[swarmee]

Originally Posted by BobC

Bottom line is, you're probably better off reporting the 1099-K activity as you want it treated on your tax return up front, rather than ignoring the 1099-K and maybe having to spend even more time, effort, and money straightening things out withe IRS (and possibly others) later on.

Based on the post you responded to, I think bnorth was questioning whether or not to take deductions on the $2000 (in your example) or just pay the full tax owed on it. He wasn't talking about not claiming it at all.

Edit: thought it was originally posted by someone else.

[Gorditadogg]

Originally Posted by swarmee

Based on the post you responded to, I think Peter was questioning whether or not to take deductions on the $2000 (in your example) or just pay the full tax owed on it. He wasn't talking about not claiming it at all.

That's how I read it too. Still, a lot of good information in BobC's post.

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[BobC]

Originally Posted by Gorditadogg

That's how I read it too. Still, a lot of good information in BobC's post.

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Not sure either, see post #30.

[BobC]

Originally Posted by swarmee

Based on the post you responded to, I think bnorth was questioning whether or not to take deductions on the $2000 (in your example) or just pay the full tax owed on it. He wasn't talking about not claiming it at all.

Edit: thought it was originally posted by someone else.

Wasn't exactly sure what he meant either, as he mentioned just paying the tax, or getting an accountant to help. I thought he may have been referring back to what Bill/birdman42 had said earlier about the IRS sending a letter and tax bill to people who wouldn't properly be reporting their 1099-K info on their returns, and just paying that IRS tax bill as opposed to hiring an accountant/tax preparer to prepare and file their return correctly to begin with.

Even if my interpretation of his question was wrong, my post is still relevant to show people they are probably better off getting an accountant/tax preparer to help them properly file if they can't do so themselves. At least for the first year they get a 1099-K.