tax time again

[37chief]

I have a couple mowers one for sure that will never cut another blade of grass. When I scrap it, along with a tractor I will never use. When I take it to the scrap yard they take all my information. Does the scrap yard report the money they pay me for my scrap, to the IRS? I will not get what I paid for the mower, and tractor when I purchased it? This looks like it could turn into another paper mess . Stan


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[Steve in VA]

I have a couple mowers one for sure that will never cut another blade of grass. When I scrap it, along with a tractor I will never use. When I take it to the scrap yard they take all my information. Does the scrap yard report the money they pay me for my scrap, to the IRS? I will not get what I paid for the mower, and tractor when I purchased it? This looks like it could turn into another paper mess . Stan


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I don't believe the scraper reports the sale to the IRS. Around here, the scraper wants driver's license and such on the off chance that the item was stolen.

 

[J Hamilton]

I don't believe the scraper reports the sale to the IRS. Around here, the scraper wants driver's license and such on the off chance that the item was stolen.

That's the same way her in Illinois as well.

 

[valleview]

Ask them what they are required to do.

 

[ss55]

I have a couple mowers one for sure that will never cut another blade of grass. When I scrap it, along with a tractor I will never use. When I take it to the scrap yard they take all my information. Does the scrap yard report the money they pay me for my scrap, to the IRS? I will not get what I paid for the mower, and tractor when I purchased it? This looks like it could turn into another paper mess . Stan


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Most large equipment purchases are depreciated rather than expensed. Talk to your tax accountant.

 

[J Wendt]

Its copper thefts and catalytic coverts that they are really after.

 

[Tramway Guy]

I have a couple mowers one for sure that will never cut another blade of grass. When I scrap it, along with a tractor I will never use. When I take it to the scrap yard they take all my information. Does the scrap yard report the money they pay me for my scrap, to the IRS? I will not get what I paid for the mower, and tractor when I purchased it? This looks like it could turn into another paper mess . Stan


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If you don’t get a 1099 from them; they didn’t report it. And I presume you didn’t give them a W-9 form, either.

 

[Stan Coryell]

I have a couple mowers one for sure that will never cut another blade of grass. When I scrap it, along with a tractor I will never use. When I take it to the scrap yard they take all my information. Does the scrap yard report the money they pay me for my scrap, to the IRS? I will not get what I paid for the mower, and tractor when I purchased it? This looks like it could turn into another paper mess . Stan


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I believe, here in New Jersey/ Pennsylvania, that if you get a total payout throughout the year of a certain sum you will get a 1099 from that scrap dealer. I don't know this to be fact. I also agree with the comments regarding theft.

 

[NoDakInMN]

I agree they need an ID in case something shows up to be stolen. As for income tax, selling something that you bought with money you already paid income tax on cannot be taxed again unless it appreciates in value, then you would owe a capital gain., but I doubt if that applies if you are selling it for scrap. Now, people who make a living dealing in scrap is different, but that is also a reason for requesting an ID because the person checking you out has no idea who is doing for a living and who is not, so they get the info from everyone.

 

[used red MN]

I agree with Stan C. likely there is a trigger amount over a years time that requires them to provide you a 1099. What is the form of payment? If it’s cash you can probably pretend it never happened, unless the 1099 shows up. If it is a check or other traceable money transfer, it depends on who does your taxes and what disclosure you give them about your bank accounts. During an IRS audit it could come into question if it is not paid in cash and not reported.

 

[MarkB_MI]

As others have said, it's nothing to worry about. Many states now require identification to cut down on rampant metal theft. And it's working.

If they really intend to report the transaction to the IRS, they would most likely give you an IRS W-9 form, which requests you to provide your taxpayer ID (SSN or Employer ID). And it's likely your sale is well under the reporting requirement, even if they were inclined to report it.

Just because you sell something doesn't mean you had income from the sale. Obviously you paid a lot more for your mower and tractor than you're selling them for, so the sale actually constitutes a loss. The only way the IRS would be interested is if you originally deducted those purchases as business expenses or if you claimed depreciation on them. Don't sweat it.

 

[John T]

I have sold items for years to scrap yards etc etc and NEVER had any tax ramifications. Many items I sold were at a LOSS and I never tried to take that deduction on my taxes. ITS UP TO YOU BUT I WOULD NOT WORRY ABOUT IT I have more important things to fret over lol.

John T NOT a CPA or a Tax Attorney see what they have to offer in addition to any lay opinions posted here...

 

[Al nickel]

In Canada they would say , "don"t sweat the small stuff "

 

[Keith Williams]

I agree they need an ID in case something shows up to be stolen. As for income tax, selling something that you bought with money you already paid income tax on cannot be taxed again unless it appreciates in value, then you would owe a capital gain., but I doubt if that applies if you are selling it for scrap. Now, people who make a living dealing in scrap is different, but that is also a reason for requesting an ID because the person checking you out has no idea who is doing for a living and who is not, so they get the info from everyone.

The amount you receive from the scrap dealer is completely taxable as a capital gain IF you have depreciated the asset to zero value.
Keith

 

[russ1]

Since most of them pay in cash there is requirement that it be reported by them I think.

 

[Factotum]

 

[Ted in NE-OH]

I have a couple mowers one for sure that will never cut another blade of grass. When I scrap it, along with a tractor I will never use. When I take it to the scrap yard they take all my information. Does the scrap yard report the money they pay me for my scrap, to the IRS? I will not get what I paid for the mower, and tractor when I purchased it? This looks like it could turn into another paper mess . Stan


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No they do not report it. It is only to prevent them from buying stolen items.

 

[37chief]

View attachment 3540

I hear you. I still haven't had to diagram a seantce

View attachment 3540

I hear you. Same with me time spent trying figure out how to diagram a sentence, time could have been better spent on me. I couldn't do it anyway. Stan