F&F and IRS income limits

[Quiet]

I generally consider them ill-informed of the consequences. Most of the time they do it because everyone else seems to be requesting funds that way.

Changes to taxation may have pushed even more people to request FF, but as I stated they are at a greater risk of their account and funds frozen, since this has not escaped PayPal's attention too. But everyone has a different risk assessment of any situation, this being no different.

Sorry, maybe we could ask your "friend who works for Paypal" about it.

The fact is, Paypal isn't the only game in town, so even if they were to freeze peoples' accounts, sales are still going to happen, and (to bring this back around to the facts) those payment methods won't have the "protection" that people are used to. Simple as that.

 

[stonproject]

I generally consider them ill-informed of the consequences. Most of the time they do it because everyone else seems to be requesting funds that way.

Changes to taxation may have pushed even more people to request FF, but as I stated they are at a greater risk of their account and funds frozen, since this has not escaped PayPal's attention too. But everyone has a different risk assessment of any situation, this being no different.

Never hold funds in your Paypal account for longer than it takes to press the "transfer" button

 

[Peter Hartwig]

Seems a bit of a shame that this abuse could result in PP canceling the F&F program. Many use and benefit from it, and it could be ruined by a bunch of guys and gals with too much disposable income buying over priced knives
While BF has no rule against the use of F&F, they hardly condone it's use.
Oh well- off my soap box for now.
Each can do what they wish, but hope they at least consider their action, rather than just following the herd

 

[nbp]

I appreciate your posts Peter. My views align with yours, and threads like this do help me see the folks I would like to or would not like to do business with in the future, even if they don't solve our IRS woes.

 

[choombak]

Oh, I wasn't arguing, I was simply telling you that you aren't going to get your way with your attempt at moralizing against people (like me) who don't care about your opinion.

Pointing out an obvious violation of a signed and legally binding contract is "moralizing"? I guess I learn new things every day!

Sorry, maybe we could ask your "friend who works for Paypal" about it.

The fact is, Paypal isn't the only game in town, so even if they were to freeze peoples' accounts, sales are still going to happen, and (to bring this back around to the facts) those payment methods won't have the "protection" that people are used to. Simple as that.

Exactly my point - there are viable alternatives that should be preferred to PayPal.

Our conversation has been polite so far, let's keep it that way. Thank you.

 

[Quiet]

Pointing out an obvious violation of a signed and legally binding contract is "moralizing"? I guess I learn new things every day!



Exactly my point - there are viable alternatives that should be preferred to PayPal.

Our conversation has been polite so far, let's keep it that way. Thank you.

An obvious violation that A. would be very difficult to prove (which is why they have only gone after the most egregious offenders). And let's not pretend the tone concerning "Well, you should ALWAYS use PPG&S!!" doesn't get super sanctimoneous around here, let's not insult each other's intelligence. If I had a dollar every time someone with a low post count who's only here to participate in the Exchange posted "When I see PPFF, I'm OUTTA there, because there's no way I'M getting scammed!", I'd have enough to pay full price at a dealer, if you take my meaning.

In any case, I don't think we're changing anyone's minds here. PPFF is a viable alternative for the time being in avoiding excessive taxation of our hobby from a heavy-handed Government, and until that changes, it's what most people will use.

Good day.

 

[King of the Cheese]

I used to be a huge backer for g&s only, but with these IRS changes, I’m forced to use f&f. I will not be paying extra taxes just to give a buyer peace of mind, the 3% fee was “tax” enough. G&S was a dream, and a good one while it lasted. Now it’s time to wake up, and understand that it’s time to conduct a risk assessment based on things like feedback ratings, etc.

What people decide to do is up to them, I won’t judge people based on whether they eagerly fork out extra cash to the IRS or not. Just don’t be demanding I do it. People can skip buying from me over it, but there will always be someone next in line. The market decides.

 

[Blues]

I used to be a huge backer for g&s only, but with these IRS changes, I’m forced to use f&f. I will not be paying extra taxes just to give a buyer peace of mind, the 3% fee was “tax” enough. G&S was a dream, and a good one while it lasted. Now it’s time to wake up, and understand that it’s time to conduct a risk assessment based on things like feedback ratings, etc.

What people decide to do is up to them, I won’t judge people based on whether they eagerly fork out extra cash to the IRS or not. Just don’t be demanding I do it. People can skip buying from me over it, but there will always be someone next in line. The market decides.

That party is going to come to an end one way or another...either via the IRS waking up and actually going after those who misreport, or via PayPal cracking down on those who skirt their terms of service.

There is no free lunch.

(Personally, I plan on selling infrequently to those who know me well enough that they will trust me with a check, money order or some other method which is not forcing me to pay tax on items I sell below what I paid for them...or just give 'em away and cut my purgatory time down a couple thousand years.)

 

[King of the Cheese]

That party is going to come to an end one way or another...either via the IRS waking up and actually going after those who misreport, or via PayPal cracking down on those who skirt their terms of service.

There is no free lunch.

(Personally, I plan on selling infrequently to those who know me well enough that they will trust me with a check, money order or some other method which is not forcing me to pay tax on items I sell below what I paid for them...or just give 'em away and cut my purgatory time down a couple thousand years.)

Yep, as technology evolves and regulation catches up, they’ll find more people to harass over it to get their tax money. I have already dropped off selling significantly. I fully expect one day down the road that if bank statements don’t exactly match w-2s and 1099s, that I’ll have a swinging light bulb above my head in a darkened, cigarette smoke filled room as a couple IRS agents with rolled up sleeves yell questions at me about where that $200 money order or PayPal transfer came from.

 

[Blues]

Yep, as technology evolves and regulation catches up, they’ll find more people to harass over it to get their tax money. I have already dropped off selling significantly. I fully expect one day down the road that if bank statements don’t exactly match w-2s and 1099s, that I’ll have a swinging light bulb above my head in a darkened, cigarette smoke filled room as a couple IRS agents with rolled up sleeves yell questions at me about where that $200 money order or PayPal transfer came from.

I wanna be there for that...

 

[Blues]

Better call Saul...

 

[Peter Hartwig]

Yep, as technology evolves and regulation catches up, they’ll find more people to harass over it to get their tax money. I have already dropped off selling significantly. I fully expect one day down the road that if bank statements don’t exactly match w-2s and 1099s, that I’ll have a swinging light bulb above my head in a darkened, cigarette smoke filled room as a couple IRS agents with rolled up sleeves yell questions at me about where that $200 money order or PayPal transfer came from.

That is where government cryptocurrency comes in.

 

[HappyDaddy]

What everyone is complaining about is that the IRS is making it more difficult to cheat on your taxes. None of this has changed anyone's tax obligations. Income has always been income and selling stuff at a profit is income.

 

[rhino]

We've hashed over

What everyone is complaining about is that the IRS is making it more difficult to cheat on your taxes. None of this has changed anyone's tax obligations. Income has always been income and selling stuff at a profit is income.

I don't think so. The real problem is that most of us didn't keep receipts for everything we bought (knife or otherwise), so even if it were reasonable to force us to prove what we paid for items sold, in many cases it's impossible.

I'm in need of downsizing a lifetime's worth of possessions, but if I sell them online, I'm going to be forced to pay taxes on things purchased with income that was already taxed at least once. It's wrong to put that burden us.

 

[toker]

I don't think so. The real problem is that most of us didn't keep receipts for everything we bought (knife or otherwise), so even if it were reasonable to force us to prove what we paid for items sold, in many cases it's impossible.

I'm in need of downsizing a lifetime's worth of possessions, but if I sell them online, I'm going to be forced to pay taxes on things purchased with income that was already taxed at least once. It's wrong to put that burden us.

This definitely affects people in your situation disproportionally. I'm not as worried since I probably have all of my receipts online. If I were in your situation, I wouldn't sell anything online.

 

[King of the Cheese]

This definitely affects people in your situation disproportionally. I'm not as worried since I probably have all of my receipts online. If I were in your situation, I wouldn't sell anything online.

Or just do whatever your anxiety for audit risk can handle.

Plenty of money laundering operations they need to be looking at before anyone selling a knife or two. If they really want to devote the resources to people like the members here, I question their prirorities.

 

[madcap_magician]

Or just do whatever your anxiety for audit risk can handle.

Plenty of money laundering operations they need to be looking at before anyone selling a knife or two. If they really want to devote the resources to people like the members here, I question their prirorities.

Something about the actions of the federal government that makes you think their priorities are straight?

 

[Vince000]

Yep, as technology evolves and regulation catches up, they’ll find more people to harass over it to get their tax money. I have already dropped off selling significantly. I fully expect one day down the road that if bank statements don’t exactly match w-2s and 1099s, that I’ll have a swinging light bulb above my head in a darkened, cigarette smoke filled room as a couple IRS agents with rolled up sleeves yell questions at me about where that $200 money order or PayPal transfer came from.

That's exactly why Democrats a few months ago were trying to pass a bill that would have forced all banks to report all transactions per account totaling $10k or more every year, which includes both deposits and withdrawals i.e. affecting virtually the entire population (e.g. you earn $5k and you spend $5k, then you meet the threshold). The intent was to "scare" people into "tax compliance" under the threat that big brother is watching you.

 

[badcow47]

If you sell something for same as purchased, you pay NO income tax (as long as you document paid vs sold amount on your taxes). If you sell for less than paid, you could claim the loss or the opposite if a profit was made.

Nothing has really changed tax wise, except this administration is choosing to have banks now report your incoming bank transactions that are less than the previous $10k threshold amount individual transactions to $600 for all yearly transactions. Government intervention into personal lives at the cost of the individual tax payer (bank expenses related to this reporting providing additional financial burden on the working man).

RE: "I won't do F&F! So now what?"
Plan on saving purchase and sales records to itemize on your tax docents (or expect to pay income tax on ALL sales). Remember situation when selecting what you vote for in future.

I would agree, but that threshold is ridiculous.
Some of the knife purchases are years old .
The cost accounting will be a bit tricky. They are focusing their efforts on the wrong segment of their tax base.

 

[King of the Cheese]

They don’t have the bandwidth to audit all of us. Bring it on, I say.