Random Thought Thread

Jack of All Blades said:
Ah, See I was under the impression that PayPal reported anything over $600 as taxable Income unless proven otherwise.
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No, they will send a 1099-K (I think that's the one) to the IRS saying you've sold $x,xxx worth (or whatever the amount is) of goods in a given year, if you sell more than $600. Not necessarily that it is $600+ of income. Big difference.
 
Jack of All Blades said:
Ah, See I was under the impression that PayPal reported anything over $600 as taxable Income unless proven otherwise.
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They will send you a 1099-K (I believe). It will be up to you to show whether or not it was taxable, (profit), on your return. If you don't show a loss, or break even, you will be subject to tax as "ordinary income" as I understand it. (Unless it is a small business, which is a different animal.)
 
yoko said:
Lol I am the farthest thing in life from an operator

I use mine for everything though, tighten bumper stand bolts, the plier heads are excellent so I use them to grab things I can't (finger nail biter sorry)
Flat head to open cans, i can go on and on.. so many uses!

Mine have bailed me out of so many situations when my kids cars have broke down and I didn't bring the right tools
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I have a small $5 multi-tool in each car, but the only thing I've ever used it for during work hours was to move a monitor (Phillips-head) from one desk to another.
 
Jack of All Blades said:
Okay so better question, how does one account for untaxable income? Do I screenshot the purchase price? Get an appraisal for how much it was worth? Screenshot my dlt trading order? What type of “receipt” is needed?
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You need to keep a record of the transaction. Receipt, screen shot, whatever. They, (you know who), will ask for it if they decide it's worth their time to send you a letter asking for proof.

Don't overthink it.
 
Jack of All Blades said:
Okay so better question, how does one account for untaxable income? Do I screenshot the purchase price? Get an appraisal for how much it was worth? Screenshot my dlt trading order? What type of “receipt” is needed?
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Proof of what you paid is really what they're looking for, from my understanding.
 
Jack of All Blades said:
Okay so better question, how does one account for untaxable income? Do I screenshot the purchase price? Get an appraisal for how much it was worth? Screenshot my dlt trading order? What type of “receipt” is needed?
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When filing you just need to remember what you paid, roughly, and subtract it, and make a little spreadsheet for the IRS.

You need the receipts or documentation once you get audited. Can be purchase receipts, or value and purchase year, at which point you could use ebay to determine the value, for instance.

Note that any of this is only relevant for your 2024 tax filing (for the 2023 tax year); if I understand right, the IRS is ignoring paypal in 2023.

In theory, even if you sold using F&F, you'd still have to do the same thing.
 
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ferider said:
When filing you just need to remember what you paid, roughly, and subtract it, and make a little spreadsheet for the IRS.

You need the receipts or documentation once you get audited. Can be purchase receipts, or value and purchase year, at which point you could use ebay to determine the value, for instance.

Note that any of this is only relevant for your 2024 tax filing (for the 2023 tax year); if I understand right, the IRS is ignoring paypal in 2023.

In theory, even if you sold using F&F, you'd still have to do the same thing.
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2024 for Fed, but several states have been doing it for a while now...since 2017 for me.
 
More info:

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
 
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