I've been curious and I don't know where to ask. Why don't people like paypal G&S here? I know there are fees, but what if someone was willing to pay them? I ask because G&S is required on Reddit to protect from selling side scammers. Not that there would be any worries with a bunch of green feedback.
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All For Sale threads must have a pic showing the knife being sold with written date listed & your username! - scammers hate this one trick! The rules for The Exchange can be found here. Please read and follow them. Stop using Paypal Friends & Family and follow our best practices to prevent getting ripped off or having a bad deal.
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The BladeForums.com 2024 Traditional Knife is ready to order! See this thread for details: https://www.bladeforums.com/threads/bladeforums-2024-traditional-knife.2003187/
Price is $300 ea (shipped within CONUS). If you live outside the US, I will contact you after your order for extra shipping charges.
Order here: https://www.bladeforums.com/help/2024-traditional/ - Order as many as you like, we have plenty.
PayPal G&S question
- Thread starter hedd
- Start date
Peter Hartwig
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IRS law that PP must follow.
But you are correct on why more now than ever before are using F&F
Here's the relevant thread; it's quite a journey.
www.bladeforums.com
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
There is going to be much more guidance on this from the IRS come closer to tax time at the end of the year. But the bottom line is you don't pay tax on personal property items that you sold at a loss. You also don't pay tax on collectible items that you sold at a loss. Depending on your CPA they may point you towards seeing knives as a personal property item or collectible item. The rules are a little different on "collectible items" since they are not a cumulative amount, E.G. you don't total up how much you paid and then how much you sold. It's on a transactional basis so you would have to pay taxes on any individual items you made a profit on. But let's be honest, most of us are talking about 10-20 bucks at most and most transactions are for a loss. I spoke at length with my CPA about this and she said bottom line is you don't pay taxes on stuff you took a loss on but there wasn't enough guidance from the IRS yet on how exactly it will be reported, what forms, etc, in light of this new reporting requirement.
She also said to be very clear that you do not have to file as a business; people have been incorrectly reporting that all over different sites. That only matters if you're trying to take "losses" against your tax liability that is above and beyond zeroing out money that was lost on the item. At that point it is no longer a hobby and you have to document various things, things get complicated. But again simply reselling collectible items and personal property do not typically fall under that purview. Nor should it trigger any sort of red flags if everything is properly reported and above board. People properly offset 1099 income all the time due to expenses, it will not be a new thing, there will just be a lot more of it in the 2022 tax year.
Just to be clear, I is a stupid knife guy and I am parroting my CPA's responses from our conversation. I am definitely no tax expert, always talk to a professional!
She also said to be very clear that you do not have to file as a business; people have been incorrectly reporting that all over different sites. That only matters if you're trying to take "losses" against your tax liability that is above and beyond zeroing out money that was lost on the item. At that point it is no longer a hobby and you have to document various things, things get complicated. But again simply reselling collectible items and personal property do not typically fall under that purview. Nor should it trigger any sort of red flags if everything is properly reported and above board. People properly offset 1099 income all the time due to expenses, it will not be a new thing, there will just be a lot more of it in the 2022 tax year.
Just to be clear, I is a stupid knife guy and I am parroting my CPA's responses from our conversation. I am definitely no tax expert, always talk to a professional!
- Joined
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Having used the knife exchange on reddit, they only require it until you get 25 feedback then you can use any payment method. You can still charge back paypal FF purchases if you pay with a credit card so I dont know how much their rule is going to help. Majority of people use FF to avoid additional paperwork when the next tax season comes along. FF and GS is a hot topic here, many see using FF morally wrong against paypal, while many others dont care.
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No adjustments to your cost basis for inflation...in other words---> You bought a thingamajig for $600 in 1992 and sale now for $900. According to the inflation calculator $600 in 1992 is equal to $1200 today. We have to pay taxes on the $300 we "made" even though we actually lost money.