SOLD / FOUND Keep this in mind when using Paypal now

[TooTall]

Sorry this isn't a sale post but something about this should be posted here and maybe stickied so people are aware.

https://newsroom.paypal-corp.com/20...eporting-Requirements-Your-Questions-Answered
One you hit $600 in G&S payments in a year, you will receive a 1099 from Paypal or whoever the transaction is coming thru.

I believe cost of goods sold would still offset this but your taxes will get a lot more messy to claim it all, without the cost of goods offset, the taxes could be 50% of what you were 1099'd.

TT

 

[JSmalls87]

Dang, taxes gotta sneak in just about every aspect of life sooner or later. Thanks for sharing, certainly good to know.

 

[TN-RC]

I do F&F so that should not be a 1099

 

[3d-rc.myshopify.com]

Most of my sales are PayPal. They definitely take their part of the pie.

 

[Mazin]

Its the IRS trying to be "Helpful" is the way it was portrayed in the Article I read, I say its just the IRS being more greedy but what do I know I'm just a Peasant. They are trying to get more of the freelancers, contractors etc not claiming the small stuff on their taxes.

Who's to say bill's can't be split up....

 

[Rcproponent]

From why I read I understood that if you sold your items at a loss, there is no reason to claim as income. As your not making any income off the items sold. I could be wrong though… I’m not an accountant

 

[*420+3RC*]

From why I read I understood that if you sold your items at a loss, there is no reason to claim as income. As your not making any income off the items sold. I could be wrong though… I’m not an accountant

Oh I hope as I lose my a$$ on any purchase or sell I make . Not really just most the time

 

[Rcproponent]

Oh I hope as I lose my a$$ on any purchase or sell I make . Not really just most the time

Pretty much the name of the game haha

 

[ABabyEater]

To be clear, this is ALL TRANSACTIONS OVER $600, REGARDLESS OF PROFIT/LOSS/F&F ETC.

This extends beyond PayPal to all money transfers, Zelle, Cashapp, etc. and includes your bank reporting all transfers in and out of your accounts of $600 or more to the federal government

 

[jondilly1974]

To be clear, this is ALL TRANSACTIONS OVER $600, REGARDLESS OF PROFIT/LOSS/F&F ETC.

This extends beyond PayPal to all money transfers, Zelle, Cashapp, etc. and includes your bank reporting all transfers in and out of your accounts of $600 or more to the federal government

Yep this

Used to be transactions over $9,999.99 only got reported. Now it’s lowered to above $599.99. It’s so much easier to automate these types of filings so they are just casting a wider net.

 

[gotnitro]

Yep, this lovely administration is trying to get $600 and higher EVERYTHING watched by the IRS. Even withdrawing $600 from your own account OR buying $600 or more on a credit card. They are trying to manage you and its even in the dumb BBB trillions of dollar bill they are still trying to get passed. Elections have consequences.

 

[MAVERICK@2]

I am totally dumb when it comes to taxes and the IRS but could you get around this by making two smaller transactions back to back like 400$ each for a 800$ product?

 

[Monster Dork]

They're squeezing the stone for more blood because a certain group of mega-wealthy refuse to pay their fair share. So the IRS clamped down on other areas to make up the difference...

 

[ABabyEater]

They're squeezing the stone for more blood because a certain group of mega-wealthy refuse to pay their fair share. So the IRS clamped down on other areas to make up the difference...

Don't forget the part where the mega-wealthy actively control the IRS through the rest of the federal government, so they are simply ignored, and don't have to "refuse to pay" because they aren't required to in the first place. Above the laws they create themselves.

 

[Monster Dork]

With great power comes great privilege.

 

[Jordan10R]

From why I read I understood that if you sold your items at a loss, there is no reason to claim as income. As your not making any income off the items sold. I could be wrong though… I’m not an accountant

Yea I like it better this way

 

[Engineer]

I am totally dumb when it comes to taxes and the IRS but could you get around this by making two smaller transactions back to back like 400$ each for a 800$ product?

Look up “structuring in money laundering”

 

[jondilly1974]

I am totally dumb when it comes to taxes and the IRS but could you get around this by making two smaller transactions back to back like 400$ each for a 800$ product?

I believe it’s a yearly max of $600 per vendor or individual. Once you surpass that $600, it triggers the filling.

 

[TooTall]

To be clear, this is ALL TRANSACTIONS OVER $600, REGARDLESS OF PROFIT/LOSS/F&F ETC.

This extends beyond PayPal to all money transfers, Zelle, Cashapp, etc. and includes your bank reporting all transfers in and out of your accounts of $600 or more to the federal government

Nope, it is cumulative per year, once you receive $600 total it's triggered.

Yep this

Used to be transactions over $9,999.99 only got reported. Now it’s lowered to above $599.99. It’s so much easier to automate these types of filings so they are just casting a wider net.

No transaction size in it at all, my understanding is it is cumulative per year. Once you receive 600 for a good or service, it triggers the 1099
The kicker in this is, they can say well no chnage really you all should have been claiming these monies any way. But the difference is now they are sending you and the IRS the 1099 info, so the IRS can flag your return if you don't have it claimed in your taxes.

 

[ABabyEater]

Nope, it is cumulative per year, once you receive $600 total it's triggered.

No transaction size in it at all, my understanding is it is cumulative per year. Once you receive 600 for a good or service, it triggers the 1099
The kicker in this is, they can say well no chnage really you all should have been claiming these monies any way. But the difference is now they are sending you and the IRS the 1099 info, so the IRS can flag your return if you don't have it claimed in your taxes.

I think you may have forgotten that a single transaction over $600 is still a total exceeding $600