doublegunshop.com - home Forums General Discussion DoubleGun BBS @ doublegunshop.com Sell a Gun And Your get a 1099!

As part on the new health care bill for Jan 2012: On page 737 it states that if we( applies to all) purchase goods or services from businesses, individuals, etc, and that amount is over $600 in a calender year, that you get a 1099 and the purchaser must report this to the government. Before we only had to do this with unincorperated firms, individuals who have a business and that are not incorporated. They are trying to push that up to $5000, but that has not gone through yet. They are also wanting to repeal this (Republicans)

This will be law!

Regards

John Boyd
Quality Arms

IF you do not mo

The "Gun Show Loophole" as presented by McCain and others has nothing to do with the illegal sale of guns. The real loophole is a financial one. The vast majority of gun sales at shows are for cash and therefore untracable and unreported today. The Government(s) whose need for money is insatiable would like to close this loophole and reap the tax rewards. The item buried in the Obamacare bill is an attempt to close this loophole.
Jim

I can see the Jack Booted Thugs prowling the yard sales and swap meets now, taking pix and passing out 1099's. I can bet the scene at the Indian casinos will be very similar with a JBT beside every slot and game table.
What is this world coming to???

Dr.WtS

Only businesses, not all of us, are required to report purchases of $600 or more. Sales between individuals who are not in the business are not required to be reported on form 1099.

german democratic republic under the sword & shield of the stasi.

Yep, it was buried in the health care bill. Business must start their record keeping January 1, 1012 with the 1099Misc's to be issued by January 31, 2013 for the first year.

Any BUSINESS making a payment to another business or an individual must issue a 1099Misc if the cummulative amount paid for the year is $600 or more. Previously 1099Misc's were only issued to report payments for services; beginning in 2012 it includes all purchases except those made to governments or by credit card. Credit cards will be exempt because beginning in 2011 the credit card processor must report the amount remitted to a business on a 1099 and if the business making the payment reported it there would be a double reporting of the same payment.

I'm a CPA and the American Institute of CPA's, along with many other organizations and the IRS's own Taxpayer Advocate are calling for the repeal of this monstrosity.

If you hold an FFL you are a business.
Jim

If you hold an FFL and sell guns, are you not already supposedly paying the excise tax on firearms to the feds? Buyer pays you, you keep records, the (hidden, as far as the buyer is concerned) 10 or 11% goes to Uncle Sam. Or am I misunderstanding that?

Larry, the excise tax is paid by the manufacturer not the FFL dealer selling the firearm.

The principal taxes the various government entities are concerned with here are income tax(federal and perhaps state) and sales tax(state and perhaps local municipalities. I got into it with my State taxing office that wanted me to collect and pay sales tax even though I only do 1 or 2 shows a year and just sell items out of my own personal collection.
They finally backed off on this.
Jim