Megastink Posted January 12, 2022 Posted January 12, 2022 Now that you have to report anything over $600, I was wondering if everyone is still accepting PayPal as payment? I usually sell a few grand worth of used tackle each year and I don’t want Uncle Sam looking over my shoulder. I’d like to hear from those that sell items consistently. Thanks!
Super User A-Jay Posted January 12, 2022 Super User Posted January 12, 2022 Yes ~ And although Tax Fraud may be what all the cool kids do, deliberately misrepresenting my actions to the Internal Revenue Service, doesn't sound like a good plan to me. YMMV A-Jay 9
Super User Deleted account Posted January 12, 2022 Super User Posted January 12, 2022 11 minutes ago, A-Jay said: Yes ~ And although Tax Fraud may be what all the cool kids do, deliberately misrepresenting my actions to the Internal Revenue Service, doesn't sound like a good plan to me. YMMV A-Jay X2, Honor, Courage, Commitment. 1
BayouSlide Posted January 12, 2022 Posted January 12, 2022 Don't forget, if you're taxed on sales, then you can also deduct your costs on your taxes, just like any other "business". Talk with your tax prep professional. 2
Super User ATA Posted January 12, 2022 Super User Posted January 12, 2022 I always use PayPal to receive and send, Even my eShop set on it, It is easier and safe and yes I pay my fees and taxes. They deserve it for the service and thats how I show my appreciation for their service. Just now, BayouSlide said: Don't forget, if you're taxed on sales, then you can also deduct your costs on your taxes, just like any other "business". Talk with your tax prep professional. Exactly 2
CountryboyinDC Posted January 13, 2022 Posted January 13, 2022 I think it's a little more nuanced that what others are stating here. If you have a transaction that exceeds $600 for goods or services, you are going to get a 1099-K, and will have to prove the transaction did not represent a taxable event. I will just say that in my experience, convincing the IRS of reducing what they have decided is a tax liability is darn near impossible, regardless of the facts of the matter. You pretty much have to hire a lawyer to get them to reconsider at all. So your used graph that you paid $3k for, and get a grand for it paid by Venmo, you're getting a 1099-K (as is the IRS), and you're going to have to prove it wasn't a taxable transaction. Supposedly they're not going to tax 'friends and family' transactions, but I'm not volunteering to collect for retirement gifts etc. until I see how the administration of this new law takes shape. 2
Super User clayton86 Posted January 13, 2022 Super User Posted January 13, 2022 I use PayPal to send my fiancé money when I’m at work or away. Fastest and easiest way I’ve found if she gets ahold of me needing money for what ever I just PayPal myself the funds with one card to myself and transfer it to a card she has. Since I’ve got two PayPal’s I just send it to myself.
Captain Phil Posted January 13, 2022 Posted January 13, 2022 If you are occasionally selling stuff to friends or family, you have nothing to worry about. If you are regularly selling stuff as a commercial business, you only pay tax on your profits and are allowed to deduct expenses against those profits. I doubt anyone is going to be audited for a $650 sale. What they are looking for are tax cheats who do big business on the Internet and do not report the income. 3
Super User Jigfishn10 Posted January 13, 2022 Super User Posted January 13, 2022 Is the tax money on a "few" grand really worth trying to hide? Not sure it's really worth the risk. I know what you're thinking; JF10 is super conservative. He won't even pull the tag off a mattress. ? 3
Super User Dwight Hottle Posted January 13, 2022 Super User Posted January 13, 2022 Sure what other option do you have? All fintech methods are going to fall under the same umbrella. The reason most guys use PayPal is because of the convenience & level of protection it offer them above accepting a credit card or check.
hokiehunter373 Posted January 13, 2022 Posted January 13, 2022 17 hours ago, CountryboyinDC said: I think it's a little more nuanced that what others are stating here. If you have a transaction that exceeds $600 for goods or services, you are going to get a 1099-K, and will have to prove the transaction did not represent a taxable event. I will just say that in my experience, convincing the IRS of reducing what they have decided is a tax liability is darn near impossible, regardless of the facts of the matter. You pretty much have to hire a lawyer to get them to reconsider at all. So your used graph that you paid $3k for, and get a grand for it paid by Venmo, you're getting a 1099-K (as is the IRS), and you're going to have to prove it wasn't a taxable transaction. Supposedly they're not going to tax 'friends and family' transactions, but I'm not volunteering to collect for retirement gifts etc. until I see how the administration of this new law takes shape. Just FYI, it's not based on any one transaction over $600, it's cumulative transactions that get to be more than $600. Doesn't matter if you sell one thing for $625 or 10 for a total of $625, you're going to receive the 1099-K 1
Super User Jig Man Posted January 13, 2022 Super User Posted January 13, 2022 I don’t know why you guys have your panties in a wad. Anyone who gets $600 or more from me gets a 1099. That’s how I do business. 2 1
Super User Tennessee Boy Posted January 13, 2022 Super User Posted January 13, 2022 18 minutes ago, Jig Man said: I don’t know why you guys have your panties in a wad. Anyone who gets $600 or more from me gets a 1099. That’s how I do business. Thanks for reminding me. I've got to send a 1099 to tacklewarehouse.com. 1
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