Bad Paypal 1099

I suppose that going forward I will request money orders from those I am not familiar with, and personal checks from those I know, have deallt with in the past, or have an exceptional reputation here on the forums.

More cumbersome, but better than the layers of complexity which might otherwise be introduced.
 
Blues said:
I suppose that going forward I will request money orders from those I am not familiar with, and personal checks from those I know, have deallt with in the past, or have an exceptional reputation here on the forums.

More cumbersome, but better than the layers of complexity which might otherwise be introduced.
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Yes this also! I’ve had no problems taking a check and writing a check for trusted members(friends) here.
 
stonesell said:
If payment is by USPS money order, I need to get it sent with tracking, so that I know the buyer is serious and that our deal is on track. Some buyers may be put off by this requirement, as I found out when one person stopped responding, but I don’t want to be in a position waiting for a payment that may never show up.
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You should not ship till the MO shows up. Problem solved.

(Practically, having a tracking# requires USPS upgrade to First Class Package, which starts at like $3 or so. Compare that to sending an envelope with Freedom stamps is much cheaper and reasonably reliable).
 
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choombak said:
You should not ship till the MO shows up. Problem solved.

(Practically, having a tracking# ra USPS upgradre to First Class Package, which starts at like $3 or so. Compare that to sending an envelope with Freedom stamps is much cheaper and reasonably reliable).
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Yes, regular mail is more economical and could work just fine, especially if the buyer is known to be reliable, and the seller doesn't have upcoming travel plans that could create an issue if the mail gets delayed.
 
...looks like the ludicrous $600 reporting threshold is doa, reportedly 10K has a shot at becoming the new lower limit-- other congressmen push for 50K total yearly deposits & withdrawals before it's reported.

I wonder if it <if it reaches fruition> will affect the 1099-K situation for this calendar year? 🤷‍♂️
 
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PeteyTwoPointOne said:
...looks like the ludicrous $600 reporting threshold is doa, reportedly 10K has a shot at becoming the new lower limit-- other congressmen push for 50K total yearly deposits & withdrawals before it's reported.

I wonder if it <if it reaches fruition> will affect the 1099-K situation for this calendar year? 🤷‍♂️
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I haven't had a chance to look at this but that sounds like good news for hobbyists.

That said, until paypal rescinds its request for tax ID info, they can still piss up a rope as far as selling goes.
 
If they already sent you a 1099-K your already SOL so until they stop forcing it then really PayPal and the likes are still garbage.
 
I believe this proposal by the house would break, let me use the word, defile, our constitution in several places. Wrong spirit.
 
PeteyTwoPointOne said:
...looks like the ludicrous $600 reporting threshold is doa, reportedly 10K has a shot at becoming the new lower limit-- other congressmen push for 50K total yearly deposits & withdrawals before it's reported.

I wonder if it <if it reaches fruition> will affect the 1099-K situation for this calendar year? 🤷‍♂️
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are you referring to the online sales/PP limits or the reporting of transactions over $600 in your bank(that someone mentioned was part of 1 of the huge packages up for vote). Sounds like the latter and the PP problem may still exist.
Triton: "Not to worry if the new “infrastructure bill” passes any time a deposit of more than 600 dollars hits your checking account banks will be required to report the transaction to good old Uncle Sam. Write your Congress critters now"

Skyhorse: "If you think that sounds strange read this V
The American Families Plan calls for banks and other financial institutions to report more than just a taxpayer’s interest earned, capital gains and losses. Banks and other financial institutions would also be required to report “aggregate account outflows and inflows.” In other words, the IRS will know about all of your bank accounts, whether you earned income on that account or not, how much is in the account in a given year, and how much was transferred in and out of the account. It is unclear how this would work, but what is clear is that this new reporting obligation will create a massive compliance effort on the part of financial institutions, and eliminate a massive blindspot that the IRS is currently enduring."
 
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PeteyTwoPointOne said:
...looks like the ludicrous $600 reporting threshold is doa, reportedly 10K has a shot at becoming the new lower limit-- other congressmen push for 50K total yearly deposits & withdrawals before it's reported.

I wonder if it <if it reaches fruition> will affect the 1099-K situation for this calendar year? 🤷‍♂️
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The catch is that many states have enacted the $600 limit on their own, some starting several years ago, and this likely will not change. For those who have not though this may be good news
 
not2sharp said:
We are not a business. Did not intend or behave as one and yet are now subject to the same tax rules. Without even a mechanism by which to file an appropriate return. Sounds like this will be challenged in the courts for a while. We will have to wait and see.

In the interim, no problem; just add the additional cost to the price of the goods sold and have confidence that the rest of the market will do the same. The price of real property of every kind is about to rocket and hyperinflation is here to stay. The price of everything used is about to go from the (current market rate + tax on profit) to (current market rate + tax on full sales value). New items will be priced even higher (they are new) and of course employees will demand equivalent salary increases....

I would say the important thing is don’t panic and try to hold your position until the fog and chaos clears.

n2s
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Check out Nostrodamus over here.
 
Does this apply to me even if I spent more GS money?

Just a guesstimate, but my GS received is probably something like 2500, but my GS payed is probably like 5000 lol (thanks guys).

Would I still have to fork over dough even I though I had a "loss"?

This is very confusing, and might need to get stickied as a "new member beware"
 
Dergyll said:
Does this apply to me even if I spent more GS money?

Just a guesstimate, but my GS received is probably something like 2500, but my GS payed is probably like 5000 lol (thanks guys).

Would I still have to fork over dough even I though I had a "loss"?

This is very confusing, and might need to get stickied as a "new member beware"
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They only look at the money that came in, and assume it's all taxable income unless you can claim otherwise. In your example, you would still get a 1099 for the $2500, and if you didn't want to get taxed on the whole amount, you would need to do the Schedule C and account for the costs and expenses of what you sold.
 
Dergyll said:
Does this apply to me even if I spent more GS money?

Just a guesstimate, but my GS received is probably something like 2500, but my GS payed is probably like 5000 lol (thanks guys).

Would I still have to fork over dough even I though I had a "loss"?

This is very confusing, and might need to get stickied as a "new member beware"
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Link is in the thread and it's been discussed, but cliffnotes are that hobby income cannot have costs subtracted out. Only businesses can subtract costs. If you buy $5k over the year and resell for $1k, you owe taxes on the full $1k. Best to talk to a tax advisor. Or if you want to look into it, the IRS bible on personal tax returns is Publication 17 (this year's won't be out til December-January, but the rule isn't new).
 
jlauffer said:
They only look at the money that came in, and assume it's all taxable income unless you can claim otherwise. In your example, you would still get a 1099 for the $2500, and if you didn't want to get taxed on the whole amount, you would need to do the Schedule C and account for the costs and expenses of what you sold.
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Just looked at the form...that's ridiculous haha.

Thanks for the explanation guys, guess I'll wait for the hammer to drop. This helps with the impulse buys I guess.
 
Peter Hartwig said:
are you referring to the online sales/PP limits or the reporting of transactions over $600 in your bank(that someone mentioned was part of 1 of the huge packages up for vote). Sounds like the latter and the PP problem may still exist.
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Thanks for the reply Peter :)

I was meaning the former...I'd link the story I read that day but it had some political party bashing comments in it and I don't need a chiclet for talkin politics up in here.

But anyways...enough talk about the bill--

hellfire, here's the genuine article!

from my source:

www.congress.gov

Text - H.R.1319 - 117th Congress (2021-2022): American Rescue Plan Act of 2021

Text for H.R.1319 - 117th Congress (2021-2022): American Rescue Plan Act of 2021
www.congress.gov

SEC. 9674. MODIFICATION OF EXCEPTIONS FOR REPORTING OF THIRD PARTY
NETWORK TRANSACTIONS.

(a) In General.--Section 6050W(e) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 6050W.>> is amended to read as follows:

``(e) De Minimis Exception for Third Party Settlement
Organizations.--A third party settlement organization shall not be
required to report any information under subsection (a) with respect to
third party network transactions of any participating payee if the
amount which would otherwise be reported under subsection (a)(2) with
respect to such transactions does not exceed $600.''.
(b) Clarification That Reporting Is Not Required on Transactions
Which Are Not for Goods or Services.--Section 6050W(c)(3) of such Code
is amended by inserting ``described in subsection (d)(3)(A)(iii)'' after
``any transaction''.
(c) <<NOTE: Applicability. 26 USC 6050W note.>> Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to returns for calendar years beginning after December 31,
2021.
(2) Clarification.--The amendment made by subsection (b)
shall apply to transactions after the date of the enactment of
this Act.

From my bolded parts immediately ^^^above^^^ sounds like dummies like me who overspend and then wind up cannibalizing the collection to feed the beast-- at a <huge> net yearly loss-- have grace this current 2021 calendar year to rein things in and mend our ways for buying/selling/trading in 2022 before the taxman comes calling via 1099-K from Paypal, Venmo, et.al. in 2023...

is that how you bruddahs & sistas read it, too? TIA
 
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Insert knife hobby money here v
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