tommy p Posted March 11, 2021 Share Posted March 11, 2021 I had never seen, much less received, this form before but PayPal sent me one for my sales on eBay during 2020. It seems like they think I have a "business" which I don't, but I know it will be reported to the IRS too so I am researching now to find how to report this on my tax return. It sucks that in addition to eBay fees, PayPal fees, and shipping costs now the amount received from selling my own personal stuff will be taxed as income too. If anyone knows how this is handled on the federal tax return, please post. Link to comment Share on other sites More sharing options...
Steve Haynie Posted March 11, 2021 Share Posted March 11, 2021 Do you do your own taxes, or do you pay someone to do them? If you were selling as a business you have to show your sales. That should be offset by what you paid for merchandise. For personal stuff? You might have to dig out a receipt from 12 years ago to prove you paid more for your new gear that you sold at a loss. Swear that you bought everything at a yard sale or in a parking lot. Let the IRS prove otherwise. Link to comment Share on other sites More sharing options...
DaveL Posted March 11, 2021 Share Posted March 11, 2021 1 hour ago, Steve Haynie said: For personal stuff? You might have to dig out a receipt from 12 years ago to prove you paid more for your new gear that you sold at a loss. Swear that you bought everything at a yard sale or in a parking lot. Let the IRS prove otherwise. One tip I got from my accountant. Buy a little receipt pad for items where a traditional receipt is not available... Link to comment Share on other sites More sharing options...
Dutchman Posted March 11, 2021 Share Posted March 11, 2021 I thought you didn't get 1099'd till after 20k? I stopped selling at 18.5k on Reverb, no 1099 so far! I agree getting taxed for selling some personal items is not a business. I used to flip on ebay and Reverb. Did ok, usually broke even but got to test stuff. Now guaranteed loss on everything with state sales tax and other increases. So now I really gotta want it b4 pulling the trigger! Link to comment Share on other sites More sharing options...
django49 Posted March 11, 2021 Share Posted March 11, 2021 Selling for more than you paid for it? Is that really a thing? FWIW, I have an insurance policy ("Personal Articles") that covers my gear. They require documentation, including my cost. If push came to shove, I guess I could make a pretty good case. Link to comment Share on other sites More sharing options...
tommy p Posted March 11, 2021 Author Share Posted March 11, 2021 38 minutes ago, Dutchman said: I thought you didn't get 1099'd till after 20k? I stopped selling at 18.5k on Reverb, no 1099 so far! I agree getting taxed for selling some personal items is not a business. I used to flip on ebay and Reverb. Did ok, usually broke even but got to test stuff. Now guaranteed loss on everything with state sales tax and other increases. So now I really gotta want it b4 pulling the trigger! According to the information included with the 1099K itself, the conditions that require it to be issued are over $20k in sales (nope), over 200 transactions (nope), or accepting credit cards as payment (this must be the problem). Evidently if a person pays PayPal with a credit card and then PayPal pays you, that counts as you getting paid with a credit card which of course is BS. I consulted with a friend who is a recently retired 40-year IRS employee and he gave me a way to handle it, but he couldn't guarantee I wouldn't be asked about it later. I'm going to try it but it sure does sour selling using PayPal even more. eBay no longer uses PayPal to process payments, but Reverb does. I would imagine that PayPal will start issuing 1099K's for any sales regardless of the site, or even if you are accepting PayPal for local sales through Craig's List or FB Marketplace or something. Link to comment Share on other sites More sharing options...
Dutchman Posted March 11, 2021 Share Posted March 11, 2021 So Paypal friends and family is still the way to get paid? Every transaction I've done on this board has been a f&f transaction! Link to comment Share on other sites More sharing options...
DaveL Posted March 11, 2021 Share Posted March 11, 2021 1 hour ago, tommy p said: According to the information included with the 1099K itself, the conditions that require it to be issued are over $20k in sales (nope), over 200 transactions (nope), or accepting credit cards as payment (this must be the problem). Evidently if a person pays PayPal with a credit card and then PayPal pays you, that counts as you getting paid with a credit card which of course is BS. I consulted with a friend who is a recently retired 40-year IRS employee and he gave me a way to handle it, but he couldn't guarantee I wouldn't be asked about it later. I'm going to try it but it sure does sour selling using PayPal even more. eBay no longer uses PayPal to process payments, but Reverb does. I would imagine that PayPal will start issuing 1099K's for any sales regardless of the site, or even if you are accepting PayPal for local sales through Craig's List or FB Marketplace or something. It could be your state. My buddy lives in mass. Their state has a much lower threshold. $600. He hands is reciepts to his accountant and it’s usually not a problem. He did however cut his transactions way down. This may sound nuts but I would not be surprised if at some point in the future there is something like a 1% internet transaction fee. Link to comment Share on other sites More sharing options...
django49 Posted March 11, 2021 Share Posted March 11, 2021 Transaction fees? No kidding. Once they get their teeth into a new tax resource, it is hard to go back. If/when they are able to stamp out cash and put most everything into a form of transaction that can be traced electronically, watch out. Banks are already (in many cases) charging for the privilege of them holding your cash balances. Link to comment Share on other sites More sharing options...
Ting Ho Dung Posted March 11, 2021 Share Posted March 11, 2021 I've never been 1099d from PP (jinx). I was told it was 20k in sales or more AND 200 transactions to be 1099d. Not one or the other. For example, if you make $30k and only have 4 PP transactions you would not be 1099d. I don't bring in anywhere near $20k with PP nor do I have anywhere near 200 transactions. Someone correct me if I'm wrong, but my understanding has always been that 1099s aren't like W-2s and aren't as likely to show up on the IRS radar if they are not reported. Not implying anything here at all. As a side note, anytime you sell anything, say in a yard sale, you are supposed to collect state taxes and report the sale as income to the IRS which is bullshit as it seems to me to be more than double taxing. You paid taxes on your income that you used to purchase said items in your yard sale. You paid state sales taxes on said items in your yard sale when you purchased them. You don't use said items in your yard sale anymore. So you sell said items for pennies on the dollar (in general) in your yard sale. That is not income or profit. All that being said, Taxation is theft! Link to comment Share on other sites More sharing options...
Devnor Posted March 11, 2021 Share Posted March 11, 2021 The change is part of the covid relief bill. If you won in November, here's what that kind of winning looks like. Link to comment Share on other sites More sharing options...
Ting Ho Dung Posted March 11, 2021 Share Posted March 11, 2021 48 minutes ago, Devnor said: The change is part of the covid relief bill. If you won in November, here's what that kind of winning looks like. Oooohh,,,,,,,,,,,,,Shit! I've never been in before the lock but here I am, swingin' dick! Link to comment Share on other sites More sharing options...
cynic Posted March 11, 2021 Share Posted March 11, 2021 1 hour ago, Devnor said: The change is part of the covid relief bill. FTR, the 1099-K third-party reporting requirement was signed into law in 2008. 4 hours ago, DaveL said: It could be your state. This is exactly why. Some US States require merchant reporting at a lower threshold: Vermont, Massachusetts, Virginia, Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions; Illinois: $1,000 USD in gross payment volume of goods or services in a single calendar year with at least 4 payment transactions processed. Link to comment Share on other sites More sharing options...
Ting Ho Dung Posted March 11, 2021 Share Posted March 11, 2021 22 minutes ago, cynic said: FTR, the 1099-K third-party reporting requirement was signed into law in 2008. This is exactly why. Some US States require merchant reporting at a lower threshold: Vermont, Massachusetts, Virginia, Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions; Illinois: $1,000 USD in gross payment volume of goods or services in a single calendar year with at least 4 payment transactions processed. You can lie about your address. Link to comment Share on other sites More sharing options...
Dutchman Posted March 11, 2021 Share Posted March 11, 2021 Boy I'm going to have to cut way down on my shit's and giggles let's try it buying as most of it goes right back out! Link to comment Share on other sites More sharing options...
gtrdaddy Posted March 12, 2021 Share Posted March 12, 2021 4 hours ago, Devnor said: The change is part of the covid relief bill. If you won in November, here's what that kind of winning looks like. I won a lotto scratch off in November, but I never got a 1099k. Link to comment Share on other sites More sharing options...
crunchee Posted March 12, 2021 Share Posted March 12, 2021 Keeping cash in a mattress and sleeping on it is starting to look better and better. One of these days, I wanna be able to win the lottery, so that if any 'investment wankers' and other greedy-ass bastids come crawling out from under a rock, to try to get their hands on my money either before or after taxes, I can tell 'em to get bent. At least for awhile. I wouldn't care if the government got most of the money anyway, as long as the Wall Street 'suits' didn't get to play with any of it. Link to comment Share on other sites More sharing options...
crunchee Posted March 12, 2021 Share Posted March 12, 2021 3 hours ago, Ting Ho Dung said: You can lie about your address. I think I'm gonna 'move' to 1060 W. Addison in Chicago, like the Blues Brothers did: https://www.choosechicago.com/listing/chicago-cubs/ Link to comment Share on other sites More sharing options...
DaveL Posted March 12, 2021 Share Posted March 12, 2021 I did a little digging and the COVID relief bill apparently says "The ammendment made by subsection "a" shall apply to returns for calender years beginning after December 31, 2021. I knew this was coming at some point, I had been working to dial down my buy it and try it shenanigans. This will help. Link to comment Share on other sites More sharing options...
cynic Posted March 12, 2021 Share Posted March 12, 2021 Similar to the third party reporting requirement being signed into law in 2008 but not becoming effective until 2012. Link to comment Share on other sites More sharing options...
gtrdaddy Posted March 12, 2021 Share Posted March 12, 2021 Craigslist + buried Mason jars... Link to comment Share on other sites More sharing options...
Dutchman Posted March 12, 2021 Share Posted March 12, 2021 I've had my son list stuff on his facdbook page, kind of a hassle but I've been surprised how well things have sold their. So for those w FB another option. Link to comment Share on other sites More sharing options...
gtrdaddy Posted March 12, 2021 Share Posted March 12, 2021 19 minutes ago, Dutchman said: I've had my son list stuff on his facdbook page, kind of a hassle but I've been surprised how well things have sold their. So for those w FB another option. I used to have a FB page. Too many things to do in life, it was way too much of a distraction. Holy hell. Link to comment Share on other sites More sharing options...
Dutchman Posted March 12, 2021 Share Posted March 12, 2021 5 minutes ago, gtrdaddy said: I used to have a FB page. Too many things to do in life, it was way too much of a distraction. Holy hell. I ditched mine years ago also. I decided a private life is much better! Link to comment Share on other sites More sharing options...
BubbaVO Posted March 12, 2021 Share Posted March 12, 2021 13 hours ago, crunchee said: Keeping cash in a mattress and sleeping on it is starting to look better and better. One of these days, I wanna be able to win the lottery, so that if any 'investment wankers' and other greedy-ass bastids come crawling out from under a rock, to try to get their hands on my money either before or after taxes, I can tell 'em to get bent. At least for awhile. I wouldn't care if the government got most of the money anyway, as long as the Wall Street 'suits' didn't get to play with any of it. You’re better off with Bitcoin or gold/silver if this keeps up. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.