Paypal for customer payments?

razor-edge-knives said:
I checked w/ my CPA this morning, they are still trying to interpret the ramifications but he said at this point the way he understands it is that you will have to collect sales tax based upon where your purchaser is located. This basically includes around 7,500+ tax districts all over the US. This is going to be a mess and I hope something gets figured out for small businesses!
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That's how it is in Canada... though, we only have 13 provinces and territories... and only in 3-4 groups of tax percentages to look up.
 
I don't think they are really targeting the small businessman but want BIG money from the Big Online retailers who have dodged this tax collecting for so long and Typical of the Money Grubbing TaxMan they want to build houses of Gold for themselves...Bastages!!!!
 
I got a 1099 from paypal and my sales were far less than 20K. The 1099 only had goods and services transactions added up of course, no FF.
 
Yeah PayPal has to file taxes on Income generated by their services so to comply with tax laws they are required to issue 1099's to any customers providing Goods & Services for profit. Any Taxable income you receive (pension, trust money, 401K etc) will generate a 1099 outside of regular job earnings. Friends and Family is NOT considered "Income Earning" and that is where the loop hole for sellers and buyers have found a way to dodge the PP Charges for services.
 
I would love for PP to issue that stuff for me. As it stands, I have to go through and tally everything at year end, separating out shipping and fees and whatnot. This is my business, though and I expect to declare everything. In fact, the more taxable income I generate, the better. Ever try to buy a house or build a shop as a self employed individual? Might as well be jobless in the bank's eyes.​
 
Rick Marchand said:
I would love for PP to issue that stuff for me. As it stands, I have to go through and tally everything at year end, separating out shipping and fees and whatnot. This is my business, though and I expect to declare everything. In fact, the more taxable income I generate, the better. Ever try to buy a house or build a shop as a self employed individual? Might as well be jobless in the bank's eyes.​
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I thought you guys lived in igloos up there.
 
Rick Marchand said:
I would love for PP to issue that stuff for me. As it stands, I have to go through and tally everything at year end, separating out shipping and fees and whatnot. This is my business, though and I expect to declare everything. In fact, the more taxable income I generate, the better. Ever try to buy a house or build a shop as a self employed individual? Might as well be jobless in the bank's eyes.​
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Rick,
You have a computer and they make some simple spread sheet programs where you can keep a monthly log of sales and expenditures...WAY easier than end of year...You can calculate expense for Utilities separate from your home use utilities and postage mileage of vehicle use for business shop repair and maintenance it all adds up and the program keeps you informed every month.
 
Yeah... we use Quickbooks. Still gets away from us a bit and there is usually an end of the year rush.
 
Busto said:
Rick,
You have a computer and they make some simple spread sheet programs where you can keep a monthly log of sales and expenditures...WAY easier than end of year...You can calculate expense for Utilities separate from your home use utilities and postage mileage of vehicle use for business shop repair and maintenance it all adds up and the program keeps you informed every month.
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This is what I do .. I do this full time and report everything, even local cash sales. I made Google sheet in Google drive (so it's stored in the cloud and accessible anywhere). Year end taxes are easy on my end, I just forward totals to my CPA.
 
razor-edge-knives said:
This is what I do .. I do this full time and report everything, even local cash sales. I made Google sheet in Google drive (so it's stored in the cloud and accessible anywhere). Year end taxes are easy on my end, I just forward totals to my CPA.
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I use the google drive too, going on 5 years now. It is awesome having it accessible anywhere and automatically backed up. The spreadsheet is great as you can add in formulas to keep a running tally of everything. End of the year is even more simple than going off a W2 form. In fact I just grant access to the tax accountant and let them figure out the rest.

If you only use your paypal debit card to purchase shop supplies and postal shipping, you can easily print out PDF statements and then add them to your google sheets.

If you have your business set up like an llc or something you can use the transfer to your personal bank account option to "pay yourself" so to speak. Makes it all pretty easy to keep track of.
 
Rick Marchand said:
There are different tax rates for separate Counties within a single State? If so, that takes the wind out of my next few remarks... and I pity you.. lol. Yikes!

Complicated sales is part of the business. If you are making enough to qualify as a business, it's a business... lol. If you are pulling in 20K from Paypal and can prove that you are spending just as much on knives, I don't think the Gov't is interested in you.

By no means am I a fan of handing over the government my hard-earned money. Do all you can to make it work in your favor. I file my taxes and try to squeeze every drop of write-off potential.

But... I think discussing how one can avoid the taxman with multiple accounts and whatnot, is tantamount Tax Evasion and is probably frowned upon by the Admin.

Rick
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There are roughly 83250 tax rates spread across 42630 individual zip codes including APO, DPO, FPO (Armed Forces) and Puerto Rico. Some zip codes having multiple rates because part of the same zip code may reside in a different county as county lines don't follow city lines. Rates range anywhere from 0% all the way up to 15% according to the last tax table I have. It's about a year outdated. I used to have to do updates once a month on the B2B website I manage at work because rates change all the time. It's a big PITA..

Whats even more of a PITA is every month I would have to run a program to filter the table out and amend the highest rate per zip code to be displayed during checkout because the software wasn't capable of breaking it down to the county, it only did it by city, state, zip. We do this so that when they checkout they may be shown a higher rate than actual so when it comes time to actually invoicing them if they are in the lower rate area they get charged less and never more.
 
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It’s all because we are a much less federalized country than you guys are up north... states have the right to run their taxation more or less any way they want. Leads to a messed up tax landscape.
 
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