Pay Pal 1099K

Choppaman

Choppaman

Gold Member
Joined
May 6, 2017
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6,851
1-1-2022 Pay Pal/Venmo, etc. are now going to start sending 1099K’s to individuals receiving a gross $600 in sales through Goods and Services. Friends and Family does not fall under this reporting that Pay Pal is now required to report to the IRS. Well this sucks. LOL. Many of us know each other and probably have no issue paying F/F but thats not really the case for most transactions on the forums. Matter of fact, the rules strongly discourages F/F payment due to the lack of protection. So! What to do???? I wonder if adding payment by USPS money order would work. Would take a little longer for transactions to occur. A lot of trust would be required. One thing is for sure, in my attempt to thin out my collection, I know I’m going to get nailed with a 1099K. I certainly would like to avoid that.

What are your thoughts Fiddleback Family?
 
I suppose you can add tax to the sale. Set aside for the 1099k. Too much too worry about. :confused:
 
I'm friends with most people I buy from here. I've been paying F/F for a long time. I'm not opposed to USPS money orders but it is definitely a hassle.
 
NoRest said:
I'm friends with most people I buy from here. I've been paying F/F for a long time. I'm not opposed to USPS money orders but it is definitely a hassle.
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Definitely is a hassle. I've done USPS money orders about 4 times now. I wait for funds to arrive and then ship knife. Adds time. I know many of us here would have no issue doing F/F for each other. But many will not even put a second into the thought on the exchange. Just really sucks to pay tax for something and pay again. OR buy a knife from my buddy Greg, then sell it on the exchange and then get a 1099K. This blows. I guess adding tax to the item or offering the option to purchase F/F is the answer. I messaged a moderator to see what they thought of it and to see if it can be added to rules for sales. ??
 
1099? Really? Don’t they just print trillions $ when they need it, anyway?

Add that to a slow website, and scores of hacked accounts… kinda kills buying and selling here for me.
 
As slow as the USPS is these days what used to take a couple days is now taking a week or more to be delivered. Mailing money orders would be very slow. Then shipping the knife is just as slow. It might be a couple weeks before you receive your knife.
 
Honestly, it’s too much hassle for me. As a seller, I’ll stick to < $600 in sales/year. Getting screwed would piss me off and there’s no way I hire an accountant to sort out knife sales (I can’t imagine anything more than sales tax is owed; it certainly doesn’t feel like income since I’d lose money buying and selling).

As a buyer, I’m fine with F&F from sellers I trust from the forum (either based on my interactions or forum feedback).
 
XJ-linux said:
Job is when you make money; hobby is when you lose it!
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Seems like this should NOT apply to folks buying/selling for a hobby. I too am losing every time I sell a knife with fees, shipping etc. I could see this applying if you make something and sell it. But for a hobby? It’s BS. I’ve messaged my accountant on his take as well. Really in regards to loop holes in this reporting. Probably are none.
 
I messaged a moderator and they do not see any reason to update rules for sales to include something in regards to tax being added. Said to add it to your price if you want to collect it.
 
This is going to hurt people who are selling years of personal possessions to reduce clutter in their homes. Most of that will be sold for less than the person paid, but who documents everything they've purchased for the last 30-50 years?

Ridiculous.
 
rhino said:
This is going to hurt people who are selling years of personal possessions to reduce clutter in their homes. Most of that will be sold for less than the person paid, but who documents everything they've purchased for the last 30-50 years?

Ridiculous.
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For sure. Selling off quite a bit of my collection. Items I’ve paid F/F for, already paid a tax, picked up in person, etc. I need to rethink this process now. What a pain.
 
Choppaman said:
1-1-2022 Pay Pal/Venmo, etc. are now going to start sending 1099K’s to individuals receiving a gross $600 in sales through Goods and Services. Friends and Family does not fall under this reporting that Pay Pal is now required to report to the IRS. Well this sucks. LOL. Many of us know each other and probably have no issue paying F/F but thats not really the case for most transactions on the forums. Matter of fact, the rules strongly discourages F/F payment due to the lack of protection. So! What to do???? I wonder if adding payment by USPS money order would work. Would take a little longer for transactions to occur. A lot of trust would be required. One thing is for sure, in my attempt to thin out my collection, I know I’m going to get nailed with a 1099K. I certainly would like to avoid that.

What are your thoughts Fiddleback Family?
Click to expand...
There is already a Lengthy post about ALL of this discussion, if you search
no use having multiples.
:)

Bad - Paypal 1099

So I just got a 1099 from Paypal for selling through Goods and Services. I was under the impression that would only happen to those who sell large amounts, like over $20K. I only sold about $800 worth of items. I'm kinda pissed, especially since it was mostly stuff I had bought previously...
www.bladeforums.com www.bladeforums.com
 
Yes, the IRS has slipped it to the taxpayer once again - Prior to 2022, a 1099k was generated for such sales if there were a. more than $20,000, and b. 200 transactions or more. Now it is $600 and ANY number of transactions. I guess the taxpaper must show a loss by subtracting his or her basis in any item sold to avoid it being considered taxable income - more record keeping (can the fair market value FMV apply?), and rhino is right, those decluttering are in for a world of hurt.

I'm 70, just retired, so I thought I'd downsize my 50-years-worth of hobbies/collections. I just finished a week of substantial sales with incoming paypal payments, planning to keep it below the $20k/200 items threshold, and now THIS? I guess we will each have to start selling cheap enough to show a documented loss.

Oh, the IRS! "JUST WHEN I THOUGHT I WAS OUT, THEY DRAG ME BACK IN. . ."

Or organize and meet to sell locally/regionally in person for cash/trade.
 
Last edited:
Crag the Brewer said:
There is already a Lengthy post about ALL of this discussion, if you search
no use having multiples.
:)

Bad - Paypal 1099

So I just got a 1099 from Paypal for selling through Goods and Services. I was under the impression that would only happen to those who sell large amounts, like over $20K. I only sold about $800 worth of items. I'm kinda pissed, especially since it was mostly stuff I had bought previously...
www.bladeforums.com www.bladeforums.com
Click to expand...
Appreciate that sir. I'll keep my post going as well. Thanks
 
w.t. anderson said:
Yes, the IRS has slipped it to the taxpayer once again - Prior to 2022, a 1099k was generated for such sales if there were a. more than $20,000, and b. 200 transactions or more. Now it is $600 and ANY number of transactions. I guess the taxpaper must show a loss by subtracting his or her basis in any item sold to avoid it being considered taxable income - more record keeping (can the fair market value FMV apply?), and rhino is right, those decluttering are in for a world of hurt.

I'm 70, just retired, so I thought I'd downsize my 50-years-worth of hobbies/collections. I just finished a week of substantial sales with incoming paypal payments, planning to keep it below the $20k/200 items threshold, and now THIS? I guess we will each have to start selling cheap enough to show a documented loss.

Oh, the IRS! "JUST WHEN I THOUGHT I WAS OUT, THEY DRAG ME BACK IN. . ."

Or organize and meet to sell locally/regionally in person for cash/trade.
Click to expand...
OUCH!
 
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