Important Notice Please Read!!! Backwoodscustomknives

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bacustomknives

bacustomknives

FULL THROTTLE / FULLTIME KNIFE MAKER
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To all my friends,buyers and forum community that support me an Backwoodscustomknives.I am sorry to say after Feb.2012 I will not be excepting paypal as a payment option anymore. Due to the recent changes in there system. I was a greatful paypal member for many,many years,But im done with it,I will be excepting Certified checks,Personal checks & Postal money orders only.I have a painful feeling there will be alot of makers doing the same shortly,Please do not take this as a offense in anyway,I appreciate each and everyone of you all,And i strive to have the best customer service avalible as well as fast same or next day shipping on my peices.I know there will be a loss of bussiness b/c of this change,But it has to be this way from now on. :(
Thanks Bill
 
Can you elaborate on the policy changes? Not to start a debate just more for my own information.
 
Why so nebulous. Just provide a link or let us know what is about to happen.
 
A quick google search comes up with coming changes.

Don't worry about it Bill you will still have a customer in me. Still need to get another knife off of you.

Paypal is merely a convenience.
 
adamrockcrawler said:
a quick google search comes up with coming changes.

Don't worry about it bill you will still have a customer in me. Still need to get another knife off of you.

Paypal is merely a convenience.
Click to expand...

adam,the changes are here,i guess i was one of the first to receive the new form, i may very well have to shut down completely
 
For those that may not be aware, there are new tax rules for the 2011 filing year that pertains to receiving payments (PayPal for example). For sake of brevity, here is a small explanation from BusinessWeek.com with the explanation as to what Bill is referring:

Starting this month, business owners will begin getting new tax forms issued by their credit-card and online-payment processors and intended to keep businesses from hiding income. The form, called 1099-K, will document all 2011 transactions processed for sellers with more than 200 transactions and $20,000 in annual gross receipts. The IRS estimates that 53 million forms will be issued by such processors as eBay, PayPal, and Amazon as well as credit-card companies, says Steven Aldrich, chief executive officer of Outright.com, which makes online bookkeeping applications for self-employed people and small business owners.
 
It is completely understandable Bill. So it will take a couple of extra days to attain one of your knives or other creations. Leave it to the government to yet again mess things up! At a time when they should be making things dealing with businesses and procurement easier for both the consumer as well as business owners alike so as to stimulate the economy, they go and add another layer of bullsh!!

Also Bill, I just picked up a couple of your knives from a man all the way around the world in Tasmania!!! I am just waiting for them to get back into the United States. How is that for reach? I'll send you a couple of pictures when they arrive if you like?
 
Bill - keep in mind that as a small business, you get to deduct the cost of all supplies, equipment, electricity used to operate the equipment, postage, etc... from the gross amount on that 1099. If you've incorporated the business, it's possible you can also deduct a portion of your house payments as well, since your "office" is on the property. you'll likely want to talk to your insurance company about a small business liability policy as well -- which is also a deduction.
depending on how much business you're doing, it may be worth your while to have the electric company wire your shop up on a separate meter from the rest of the house, or to simply put a net metering device on the circuits feeding the shop so you can divide out the monthly electric bill that way for bookkeeping purposes.
Talk to your state small business office to see how to set yourself up so these changes hit you as little as possible.

good luck!
 
bacustomknives said:
adam,the changes are here,i guess i was one of the first to receive the new form, i may very well have to shut down completely
Click to expand...

:( say it ain't so bill, that makes me real sad... It brightens my day each time I see one of your knives up.

Is it really that bad for you? The advice from 1066vik sounds good.

Wish there was something to be done to help, I would venture the dudes around here feel likewise.
 
1066vik said:
Bill - keep in mind that as a small business, you get to deduct the cost of all supplies, equipment, electricity used to operate the equipment, postage, etc... from the gross amount on that 1099. If you've incorporated the business, it's possible you can also deduct a portion of your house payments as well, since your "office" is on the property. you'll likely want to talk to your insurance company about a small business liability policy as well -- which is also a deduction.
depending on how much business you're doing, it may be worth your while to have the electric company wire your shop up on a separate meter from the rest of the house, or to simply put a net metering device on the circuits feeding the shop so you can divide out the monthly electric bill that way for bookkeeping purposes.
Talk to your state small business office to see how to set yourself up so these changes hit you as little as possible. good luck!
Click to expand...

Excellent advice Vik . . . A friend of mine has a carpet cleaning business he runs part time from his home and his detached garage. You can not believe some of the "legal" deductions his accountant can "legally" take off of his income.
BA, Pay-Pal has nothing to do with the quality or craftsmanship of your work. This is just a mere hic-cup in the process of paying for your wares. And as you already know, this would not make a hill of beans to me and would not affect or stop me from buying your knives . . . . . and I am sure 99% of the guys here feel the same way. Now, if you start using stainless steel or just micarta on them . . . . . . . :D :eek:
All's good brother, trust me . . . .
Be safe.
 
I just did some research, and the form is much like a w-2. for online trasactions through third partys like paypal and ebay. Its not a bill, just a number and form to claim. That form only states the amount of money that passed through paypal accounts throughout the year.

The only people that this is gonna hurt is those that are full time knife makers, that dont claim the proceeds from their knife making. If you do that, you will be just fine. Think of it as a way for the IRS to make sure your numbers match between what you said you made, and what you actually received. Since there is no withholding, you will owe on the amount you earned but having a small business usually has that downfall anyway.

I dont know how you do your taxes, or what you claim, but it doesnt seem to be that big of an issue unless you werent claiming the proceeds from your knife making at all. If you were claiming them, go through all your orders from supplies and electric bills and gas bills etc, and that number will deflate real quick.
 
DammitTaHell.

Hadda notion it was just a matter of time til something like this.

Time for some music, apropos to an event like this...

[video=youtube_share;n9T06UfP1S0]http://youtu.be/n9T06UfP1S0[/video]

[video=youtube_share;jsBC0QWpIwo]http://youtu.be/jsBC0QWpIwo[/video]
 
Gnarly,

Awesome song choices (I love the guitar playin' of both Frampton and Trower). Here is another song to fit the mood of this thread from Joe Bonamassa:

[video=youtube;P9D_vyXgLIk]http://www.youtube.com/watch?v=P9D_vyXgLIk[/video]
 
Gnarly said:
Hadda notion it was just a matter of time til something like this.
Click to expand...
I wonder why it took so long for the IRS to get around to doing this? The bottom line is, business owners who report the income they make from their busineses to the IRS as they are legally required to do shouldn't have anything to worry about. And while I'm not an IRS agent, an accountant or a tax attorney, I'd strongly caution against suddenly discontinuing the use of a payment service like PayPal. If the IRS decides to subpoena PayPal's records as they certainly could, one of the triggers for an audit could be a precipitous decline in transactions/payments following the new ruling date. Or to put it another way, the fly may already be in the ointment.

Anyone who is concerned about how the new ruling might impact them would be well advised to contact their tax professionals right away.
 
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Bill, you're the one who has to deal with all this mess, so do what you have to do. Just remember there are lots
of people and friends here, who are willing to help any way they can. I'd talk to a tax pro for sure. Most people
are still going to buy your knives, even if they can't use paypal. It just made buying and selling more convenient.
Just holler if you need us, you know who you can count on if you need something.
 
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