Dr. Friday Radio Show – October 5, 2024

On this episode of the Dr. Friday Radio Show, Dr. Friday dives into key tax changes impacting small business owners, real estate transactions, disaster tax relief, and IRS updates. She also answers listener questions about capital gains, 1099 filings, and how to avoid tax penalties. Tune in to get practical tips for managing your taxes and staying compliant with the IRS.

Key Topics Covered:

• PayPal and Third-Party Payment Changes: Starting in 2024, businesses receiving over $5,000 via PayPal and similar platforms will receive a 1099-K.
• Capital Gains on Second Homes: How selling a second home differs from selling a primary residence, including tax implications and capital gain rates.
• Disaster Relief and Taxes: Tax relief for those affected by storms and terrorist attacks, including deadline extensions and loss claims.
• Inheritance Tax Update: What to expect in 2026 when the estate tax threshold is projected to lower.
• Tax Deadlines and Penalties: Importance of filing by October 15th for those with an extension, and understanding IRS penalties for late filing and payment.
• 1099 Requirements for Small Businesses: Clarification on when to issue 1099s and how to stay compliant with IRS rules.

Transcript

00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07-00:09 She’s the how-to girl. 00:09-00:10 It’s the Dr. Friday Show. 00:10-00:11 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:11-00:12 That’s 737-9986. 00:12-00:12 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:12-00:34 G’day, I’m Dr. Friday and the doctor is in the house. 00:34-00:45 You can join us live here in studio at 615-737-9986. 00:45-00:49 Phone lines will be open. 00:49-00:51 And then we’ll be able to get your calls. 00:51-01:03 We want to talk a little bit about a few things that have come down for all of you that may have those small businesses that you have been taking PayPal or some portion of merchant fees. 01:03-01:18 And I know that 2024 will be the first year that they will be sending those to you based on $5,000 instead of the, I think it was 200 transactions or 15 or 20,000. 01:18-01:20 So it was a big difference. 01:20-01:25 So that’s going to make a huge difference to have what you have going there. 01:25-01:40 So just make sure that you have that information because if you are running a business right now and you have the ability to do what you’re doing and before you really weren’t concerned. 01:40-01:45 So in 2023, the third party payment system was hired this year. 01:45-01:54 It’s going to be $5,000 in the phase out to implement the Washington follows feedback from taxpayers and tax professionals. 01:54-02:00 They’re basically claiming or saying that they won’t have quite so much. 02:00-02:03 They’re claiming that they’re not going to tie this directly into taxes. 02:03-02:11 They are saying that it is going to be, it was 20,200 now it’s $600 threshold enacted by the American act. 02:11-02:21 And that anything above that, theoretically you should be filing taxes, a 1099 K for any sale more than $600 of goods will be following on a 1099 K. 02:21-02:41 They’re saying the max, basically you have to be doing up to $5,000 threshold before the form will be coming out and that they will be working with taxpayers and other people to try to manage this carefully to help that the 1099 Ks are issued only to taxpayers who should be receiving them. 02:41-02:45 Well, we all know how well that works for the government. 02:45-03:01 So all I’m going to suggest is if you are a person that maybe has their own little shopping or maybe they even just do things on