New here

[Mustacheben]

Hey all,

I’m a first time member here and looking to sell and or trade some of my knives here soon. I’ve been collecting for about 5 years but have never sold anything before (other than locally through CL or to friends). I’ve read through the rules and FAQs and looked through the knife exchange for the past several weeks to get a lay of the land. I’ve seen people post items up for sale as newbies with no feedback and some sell and some don’t. Any pointers for me to help someone feel better about buying a knife from me as a new guy until I can get some positive sales under my belt?

 

[Mustacheben]

Welcome!

Be careful buddy! I came here about 7 years ago to sell a few knives but purchased a hundred or so here and other places and have yet sold anything.

That is exactly why I scoped out the exchange without an account at first. Too much temptation haha

 

[madcap_magician]

I’ve only ever used PayPal for sending money to friends. Can someone explain the differences between goods and services and friends and fam? I’ve heard some states charge you tax on G&S is that the main reason people tend to stick to F&F?

Goods and Services is the appropriate method of payment for purchase of goods and services, unsurprisingly. Most sellers requesting Friends and Family payment are doing so to avoid payment of the PayPal service fees, as they believe they are entitled to the use of PayPal's service for free.

Goods and Services gives the buyer some recourse through PayPal in the event of a problem with the transaction, whereas F&F offers no buyer protection because, well, it's against the Terms of Service to buy stuff with it, so PayPal reasonably assumes there's no purchases to protect.

With regard to taxes, technically all net income is taxable and always has been, but a 'stimulus' bill passed a couple years ago set 2022 for a tax reporting regulation change where people who receive more than $600 in payments from a third party payment processor such as PayPal for sale of goods and services will now need to receive a 1099 form from the payment processor. 1099s are reported to the IRS, so income earned from sale of personal property is going to be easier to track when you use digital payment methods. The old standard at the federal level was $20,000 AND 200 transactions to mandate a 1099, which was generous and meant most people didn't have reportable income... Although it was always taxable.

Payments between friends and family for things like sharing dinner or rent costs is not taxable income, so the F&F loophole gained even more in popularity, although I think many people are being damned fools if they think it hasn't occurred to PayPal and the IRS that people might do this.

 

[sgt1372]

I’ve only ever used PayPal for sending money to friends. Can someone explain the differences between goods and services and friends and fam? I’ve heard some states charge you tax on G&S is that the main reason people tend to stick to F&F?

Current practice is to use PP F&F (Family & Friends) payments because it is done w/o a transaction fee and is not subject to the "new" 1099 reporting requirements BUT this requires A LOT of trust (ie.. a history of +feedback).

People who make F&F payments have no recourse against the seller if they get "taken." So. buyers may should be but (are not necessarily) reluctant to make such payments to sellers w/o sufficient trade history on BF.

G&S payments are subject to PayPal fees and 1099 reporting requirements (sellers are given a 1099 that they have to reconcile w/the IRS foe transactions totaling a ridicuous $400 for the year. The trigger use to be $10k which was much more realistic.

G&S payments are also subject to PayPal buyer "guarantees" against fraudulent or failed transactions.

So, if you don't mind the 1099 requirements, accepting G&S payments (at least iniitally) should help you get some willing buyers until you have enough +feedback to stop the need to do that.

 

[Mustacheben]

Goods and Services is the appropriate method of payment for purchase of goods and services, unsurprisingly. Most sellers requesting Friends and Family payment are doing so to avoid payment of the PayPal service fees, as they believe they are entitled to the use of PayPal's service for free.

Goods and Services gives the buyer some recourse through PayPal in the event of a problem with the transaction, whereas F&F offers no buyer protection because, well, it's against the Terms of Service to buy stuff with it, so PayPal reasonably assumes there's no purchases to protect.

With regard to taxes, technically all net income is taxable and always has been, but a 'stimulus' bill passed a couple years ago set 2022 for a tax reporting regulation change where people who receive more than $600 in payments from a third party payment processor such as PayPal for sale of goods and services will now need to receive a 1099 form from the payment processor. 1099s are reported to the IRS, so income earned from sale of personal property is going to be easier to track when you use digital payment methods. The old standard at the federal level was $20,000 AND 200 transactions to mandate a 1099, which was generous and meant most people didn't have reportable income... Although it was always taxable.

Payments between friends and family for things like sharing dinner or rent costs is not taxable income, so the F&F loophole gained even more in popularity, although I think many people are being damned fools if they think it hasn't occurred to PayPal and the IRS that people might do this.

Thank you this is solid info!

 

[Mustacheben]

Current practice is to use PP F&F (Family & Friends) payments because it is done w/o a transaction fee and is not subject to the "new" 1099 reporting requirements BUT this requires A LOT of trust (ie.. a history of +feedback).

People who make F&F payments have no recourse against the seller if they get "taken." So. buyer may should be (are not necessarily) reluctant to make such payments to sellers w/o sufficient trade history on BF.

G&S payments are subject to PayPal fees and 1099 reporting requirements (sellers are given a 1099 that they have to reconcile w/the IRS foe transactions totaling a ridicuous $400 for the year. The trigger use to be $10k which was much more realistic.

G&S payments are also subject to PayPal buyer "guarantees" against fraudulent or failed transactions.

So, if you don't mind the 1099 requirements, accepting G&S payments (at least iniitally) should help you get some willing buyers until you have enough +feedback to stop the need to do that.

Thank you, this is good info!

 

[hangmanshammer]

There is also some advantages for a seller to use G&S, that most don't think of. #1 is seller protection, if there is proof of delivery, Paypal will back up a seller, they don't always side with the recipient. #2 and even more important to some, if you track your purchase price on a knife or knives you might sell, and your shipping costs and fees, you can possibly show it as a loss on your taxes and reduce your taxable income. After all. most normal knife sales are at a loss. Of course if you are buying limited editions, etc. and then selling for profit, you wouldn't fall in this category.