Bad Paypal 1099

Paratrooper06 said:
First off, ease up on the personal crap. I know you’re capable of having a discussion without acting childish.

Secondly, if you bake the taxes into the knife, the buyer is paying them, not you. G&S is there to protect the buyers. If you don’t want to afford buyers the ability to protect themselves because YOU‘RE mad about taxes, don’t act surprised if you lose a lot of seller options.
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🤡

You add 30%+ to the cost of a knife and see how many sales you lose.

Good luck with that 👍
 
While you are at it might as well roll in paypal fees too. Lol 15 percent.

And we paid taxes when we bought the knife. Roll that in as well? Just eat the first tax but not the second? No biggie!
 
State tax percentage rolled in as well?

So lets get this straight:


15.3 % federal tax
4 to 7% sales tax (depending on state)
0 to 13% state income tax (mine is 5%)
3.49% paypal fee

(We'll exclude the original tax we paid when we bought the knife)

Can easily exceed 30%.

Am I missing any more taxes?

No big deal right King of the Cheese King of the Cheese ?

Just roll em in.
 
shinyedges said:
State tax percentage rolled in as well?

So lets get this straight:


15.3 % federal tax
4 to 7% sales tax (depending on state)
0 to 13% state income tax (mine is 5%)
3.49% paypal fee

(We'll exclude the original tax we paid when we bought the knife)

Can easily exceed 30%.

Am I missing any more taxes?

No big deal right King of the Cheese King of the Cheese ?

Just roll em in.
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You’re getting all worked up like it’s the buyers fault for using g&s. It’s as if your stance is like “how dare you use g&s and make me pay taxes!” and like I said: If you take buyer protections away from buyers because you’re whiney about taxes, see what happens to the amount of buyers you have.

I’d rather be out 15% through g&s rather than 100% from theft. You really going to take that peace of mind away from people?
 
Paratrooper06 said:
You’re getting all worked up like it’s the buyers fault for using g&s. It’s as if your stance is like “how dare you use g&s and make me pay taxes!” and like I said: If you take buyer protections away from buyers because you’re whiney about taxes, see what happens to the amount of buyers you have.

I’d rather be out 15% through g&s rather than 100% from theft. You really going to take that peace of mind away from people?
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I never said any of that. You literally just made that up lol

So you are rolling in the federal 15.3% to the sale of the knife but not the sales and state income? Because they make more than 15.3% don't they? And if you add all of those taxes up, is that 15.3%?

No, it is not.


Good luck adding damn near or more than 30% up charge and selling the knife.
 
Paratrooper06 said:
I don’t get the 1099 freak outs, if this is in fact the case here. If someone demands to pay g&s, work the tax into the equation. I don’t know why people draw a hard and fast line on the 1099. If you get one, it literally takes seconds to add to your taxes.
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Takes way longer than seconds to fill out Schedule C...
 
Paratrooper06 said:
You’re confused. You do not fill out separate schedule “C” forms for each 1099-K, so yes, adding in PayPal’s impact to your existing schedule C takes “seconds”.
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Not confused at all, since I have actually done this before (2017 and 2020), and will again for 2021. Have you? I wouldn't have to do a Schedule C if it wasn't for the 1099K, so yes, it takes longer than seconds.
 
jlauffer said:
Not confused at all, since I have actually done this before (2017 and 2020), and will again for 2021. Have you? I wouldn't have to do a Schedule C if it wasn't for the 1099K, so yes, it takes longer than seconds.
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Its all automated. You don’t use a software? I mean, yeah, if you’re writing it in by hand with a pencil… sure, I guess it’ll take longer than a few seconds.
 
Paratrooper06 said:
Its all automated. You don’t use a software? I mean, yeah, if you’re writing it in by hand with a pencil… sure, I guess it’ll take longer than a few seconds.
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Yes, I use the H&R Block software. Simply entering the amount of the 1099K may take seconds, but if you don't want to pay taxes on the entire amount, you also need to enter the original cost of goods sold, and any expenses (fees, shipping costs, etc).
 
Docscoot said:
Definitely possible to address this with the Schedule C, but I really don't feel comfortable with pretending this is a small business in my case since I'm not doing it to make money, and it also doesn't seem right that if I'm selling at a loss that I would get to count that loss to reduce my taxable income. Still playing with my options, but it's always possible just to enter miscellaneous "other" income, include the 1099-K and receipts there, and call it a day. If the IRS really wants to waste their time to see whether I need to be paying a few extra dollars in taxes then so be it :)
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Next year for taxes I'm paying for the deluxe TurboTax with the live tax help and audit coverage.

I am wondering if I can do a schedule D and call any net profit or loss capital gains or losses.
 
madcap_magician said:
Next year for taxes I'm paying for the deluxe TurboTax with the live tax help and audit coverage.

I am wondering if I can do a schedule D and call any net profit or loss capital gains or losses.
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I think considering it an investment and doing gains or losses that way seems reasonable, lots of people collect as investment and pay capital gains on the profit on sales. For me I don’t think of any of this as an investment and it feels wrong to claim the losses since that would reduce my income, i think of these losses as just the cost of entry of my collecting habits. I just think the important part is filing in a way that makes sense to you and that you Can explain and defend if audited later. Just need to make sure you report that full 1099K amount so we’re not just auto flagged for a missing income entry. It’s all simple enough with software as noted above, i think turbo tax might be the best option for 1099K based on what I’ve read and my own experience struggling with hrblock software. But I am by no means a tax professional :)
 
If I could just add things on to the sales price, I would not be selling at a loss on most items.It just isn't that easy. It is a pretty price competitive market, unless you are selling something high demand/low quantity available.
 
Peter Hartwig said:
If I could just add things on to the sales price, I would not be selling at a loss on most items.It just isn't that easy. It is a pretty price competitive market, unless you are selling something high demand/low quantity available.
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Well the long time established member here who plans on rolling all the federal tax, state income tax, sales tax, paypal fees (probably lol) and some how thinks all those numbers add up to just 15% is sure he'll be selling knives like hotcakes. Rolls eyes.

It is simple. Pay through the nose on the taxes or attempt to pass them on when you sell it. If someone planned on selling a crk for 500, assuming they did not pay the max possible taxes but were somewhere in the middle at 25% (which is including multiple taxes for those to dense to understand what is being said) you'd now have to sell it at 625 dollars.

That is a significant mark up and it may be better off to just buy new from the dealer/maker.

I think I'll be going to usps MO. I'll let the math wiz/tax expert who can't understand more than one tax be the boss of paying additional taxes. 😎
 
I copied this from an internet discussion. It sounds easy, but I am no tax expert, as I always pay to have them filed properly:

“If you are "only" selling your own used personal items, you won't owe any taxes, and you don't have to fill out Schedule C (actually for personal items it would be Schedule D), you can just include them as "Other Income" on form 1040, to satisfy the reporting requirements, regardless of whether you get a 1099K or not.



Note that while you won't show any profit and not owe any taxes, you also can not claim a loss against other income.



Just the basic personal home version of Turbo Tax will handle this, and there is even information on their website of how to do this for ebay sales of used items.”
 
shinyedges said:
Well the long time established member here who plans on rolling all the federal tax, state income tax, sales tax, paypal fees (probably lol) and some how thinks all those numbers add up to just 15% is sure he'll be selling knives like hotcakes. Rolls eyes.

It is simple. Pay through the nose on the taxes or attempt to pass them on when you sell it. If someone planned on selling a crk for 500, assuming they did not pay the max possible taxes but were somewhere in the middle at 25% (which is including multiple taxes for those to dense to understand what is being said) you'd now have to sell it at 625 dollars.

That is a significant mark up and it may be better off to just buy new from the dealer/maker.

I think I'll be going to usps MO. I'll let the math wiz/tax expert who can't understand more than one tax be the boss of paying additional taxes. 😎
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Yup. USPS money orders are the way to go. I've been using them without any problems. If you are still using PayPal, you're just blowing snot all over your hands.
 
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