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Jester194

Jester194

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Arrma RC's
  1. Talion EXB
  2. Typhon 6s
Has anyone run into the issue with Paypal warning about exceeding 600 dollars without a tax ID.. I'm selling stuff at a loss so confused about this tax thing
 
Disclaimer: Always seek actual tax information from a tax professional.

That being said, long story short, if you are not making a profit, you do not have to worry about it.

But always ask a tax professional.
 
Jester194 said:
Has anyone run into the issue with Paypal warning about exceeding 600 dollars without a tax ID.. I'm selling stuff at a loss so confused about this tax thing
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I know when dealing with contractors (property management company) we had to declare all payments in excess of $599 to a vendor by issuing a 1099, so we had to have their tax ID or SS# in order to pay them.
It’s the same thing with PayPal, if you’re paid in excess of $599 for things you sell (don’t believe that includes friends and family?), PayPal will issue you a 1099 for the amount, which you have to declare on your taxes. Something like that.
 
Yea, I believe they implemented some law recently that Zelle, PayPal, etc has to now report anything over $600. Most places had to, but the law wasn't in effect for those types of payment methods.

Amazon vine (where u get free stuff to review) has to send you one if you get over $600 worth of stuff, so it can be reported as you are considered a PT contractor for them at that point. Just stoopid sh!t. :rolleyes:
 
Velodromed said:
I know when dealing with contractors (property management company) we had to declare all payments in excess of $599 to a vendor by issuing a 1099, so we had to have their tax ID or SS# in order to pay them.
It’s the same thing with PayPal, if you’re paid in excess of $599 for things you sell (don’t believe that includes friends and family?), PayPal will issue you a 1099 for the amount, which you have to declare on your taxes. Something like that.
Click to expand...
Smilinbri said:
Yea, I believe they implemented some law recently that Zelle, PayPal, etc has to now report anything over $600. Most places had to, but the law wasn't in effect for those types of payment methods.

Amazon vine (where u get free stuff to review) has to send you one if you get over $600 worth of stuff, so it can be reported as you are considered a PT contractor for them at that point. Just stoopid sh!t. :rolleyes:
Click to expand...
So what now, sell stuff through friends and family cause I rarely sell stuff but trying to clean up a bit and have rc stuff that I'm selling for a lot less then I paid
 
Jester194 said:
So what now, sell stuff through friends and family cause I rarely sell stuff but trying to clean up a bit and have rc stuff that I'm selling for a lot less then I paid
Click to expand...
Idk.....seperate transactions, each under $600? Different payment method? Cash is king. Good luck.
 
Government too greedy!
 
Smilinbri said:
Idk.....seperate transactions, each under $600? Different payment method? Cash is king. Good luck.
Click to expand...
That won’t work as PayPal looks at all your transactions together. Sell 60 things for 10 bucks apiece and you’ll get a 1099 for 600 bucks. Sure you can do friends and family but you lose your ‘safety net’, so doing so for large dollar items is risky. Here, I looked it up. It’s a new rule as of Jan 1st of this year that lowered to threshold to $600. Quick pic below concerns Friends and Family payments are not included. The full details are here-
https://www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543

329D9725-6563-4F00-A1EC-ADBE3279D3F6.png

TheBadazz said:
Government too greedy!
Click to expand...
The country doesn’t magically run itself.
 
Velodromed said:
That won’t work as PayPal looks at all your transactions together. Sell 60 things for 10 bucks apiece and you’ll get a 1099 for 600 bucks. Sure you can do friends and family but you lose your ‘safety net’, so doing so for large dollar items is risky. Here, I looked it up. It’s a new rule as of Jan 1st of this year that lowered to threshold to $600. Quick pic below concerns Friends and Family payments are not included. The full details are here-
https://www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543

View attachment 282130

The country doesn’t magically run itself.
Click to expand...
I know that of course. I said too greedy. Sometimes ppl sell things because they don't have money. Wanting them to pay taxes for that because of the payment type, sucks. Cash rules! The "family and friends" loophole is too dangerous to do on a high priced item.
 
Jester194 said:
So what now, sell stuff through friends and family cause I rarely sell stuff but trying to clean up a bit and have rc stuff that I'm selling for a lot less then I paid
Click to expand...
Either you sell it on a down low or you'll have to pay taxes on that 600..it's considered income..or you sell exactly at 595. To be safe and then you'll get the last laugh and tell the government to byte it hard 😆
You could go to your local hobby stores and grabb some of the customers before they walk in. Set up a table in the parking lot.🤣🤣
 
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King blitz said:
Either you sell it on a down low or you'll have to pay taxes on that 600..it's considered income..or you sell exactly at 595. To be safe and then you'll get the last laugh and tell the government to byte it hard 😆
You could go to your local hobby stores and grabb some of the customers before they walk in. Set up a table in the parking lot.🤣🤣
Click to expand...

As long as you’re selling for less than what you bought it for (as mentioned above), you don’t pay taxes even if the amount you receive is over $600. Most of us aren’t making money on selling our old RC’s 😁

See the first scenario in the link below:

https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more/
 
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So what I'm gathering from this is that every 1099 paypal files you will have to pay the sales sorry income tax to the IRS at the end of the year so this will effect tax returns if you are selling a lot over that 600$ mark.

In the words of the joker and I'm crazy enuf to take on batman but the IRS NO THANK YOU.

To not get charged for an item sold for over 600$ you would need proof of purchase for the items you sold as proof your selling less than you payed. Same as any business. With out proof of purchase they don't know if it was bought in sale or not or bulk discounts and such.
 
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Vulthraxis said:
So what I'm gathering from this is that every 1099 paypal files you will have to pay the sales tax to the IRS at the end of the year so this will effect tax returns if you are selling a lot over that 600$ mark.

In the words of the joker and I'm crazy enuf to take on batman but the IRS NO THANK YOU.

To not get charged for an item sold for over 600$ you would need proof of purchase for the items you sold as proof your selling less than you payed. Same as any business. With out proof of purchase they don't know if it was bought in sale or not or bulk discounts and such.
Click to expand...
It's not a sales tax, it's an income tax. Only states collect sales tax, not the federal government.
 
King blitz said:
Either you sell it on a down low or you'll have to pay taxes on that 600..it's considered income..or you sell exactly at 595. To be safe and then you'll get the last laugh and tell the government to byte it hard 😆
You could go to your local hobby stores and grabb some of the customers before they walk in. Set up a table in the parking lot.🤣🤣
Click to expand...
It appears to be when your total sales go over 600 so pretty much can't sell much
 
Vulthraxis said:
So what I'm gathering from this is that every 1099 paypal files you will have to pay the sales tax to the IRS at the end of the year so this will effect tax returns if you are selling a lot over that 600$ mark.

In the words of the joker and I'm crazy enuf to take on batman but the IRS NO THANK YOU.

To not get charged for an item sold for over 600$ you would need proof of purchase for the items you sold as proof your selling less than you payed. Same as any business. With out proof of purchase they don't know if it was bought in sale or not or bulk discounts and such.
Click to expand...
This thread is on pay pal terms ..so if you sell and receive a total amount of 600 automatically there is a paper trail.you must report or deal with IRS.IF YOU RECEIVED LESS THEN YOU don't HAVE TO FILE
 
Sure, paying tax sucks, but you don’t pay unless you earn first and I’d rather earn money then not. Cash is great but seriously, how often do people pay with cash now a days? Pretty much the only time I do is when buying some pot off a friend. As for requiring receipts for deduction purposes, they are only needed if it exceeds $75.
 
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