PayPal Policy change ?

[jimk]

Does it apply to a business that sells retail and uses a credit card service like Square and sells more than $600 to any one customer?

[esty]

22 minutes ago, jimk said:

Does it apply to a business that sells retail and uses a credit card service like Square and sells more than $600 to any one customer?

yes, business or individual, it doesn't matter...even grandma using her phone to accept payments at yard sales

 

every payment vendor will send anyone a 1099 if they receive $600 + from anyone, for any reason

 

this was passed last year, so it should not come as a surprise to people that use paypal, venmo, square, apple pay, etc 

 

unless a buyer sends you a check, money order or bank transfer for a sale, you'll get 1099 if it's $600 worth of transactions

[conkitchen]

 

We are ALL doomed! 

 

 

Edited May 24, 2022 by conkitchen

[Schnellvintage]

Soon, we will need to start bartering, and using trading posts again. 

[JohnP_02]

For PayPal this only applies if you use the "Goods and Services" option. If you receive money via the "Friends and Family" option those are not reported as income. So you lose the buyer protection, but don't have to pay the taxes. 

[calw]

A 1099 used to be triggered with paypal when a seller had $20K+ or 200+transactions.  Now it's $600 in sales no matter the number of transactions.  I assume all other online payment schemes do so also with the new rule. 

 

So, if you sell just one (nice) steering wheel, LSD, 5 speed, etc.  for $600 or more using a payment scheme with buyer and seller protection, be prepared to 'splain it with records to the IRS unless you want the total sales price to be taxable (forget the IRS short form).  I haven't bothered to check paypal's policy when sending money to friends with no fee, but assume if this is a loophole that misses the IRS data collection scheme it will be plugged soon.  

 

Don't worry, 7 figure payments wired in from China are still tax exempt.

[esty]

paypal's friends and family, based on what i read are not counted in the 1099...

 

but how much do you trust a 3rd party payment processor to handle your taxable income reporting...ebay is a living hell, there is absolutely no way to contact them PERIOD...receive $600 + from ebay sales, you get a 1099 from ebay now that they have changed their payment processing procedure

 

i expect a nightmare at tax time...say i receive $2500.00 from ebay sales, paid for through paypal by the buyer...now i have $2500 income going to paypal, triggering a 1099 from paypal and ebay also reports the same $2500

 

taxes are of no concern to me when we have 21 helpless 8, 9, 10 year old kids and teachers being slaughtered in minutes because of our spineless politicians.......

 

sorry for the outburst, my heart is broken and my mind outraged

 

[bergie33]

2 minutes ago, esty said:

 

i expect a nightmare at tax time...say i receive $2500.00 from ebay sales, paid for through paypal by the buyer...now i have $2500 income going to paypal, triggering a 1099 from paypal and ebay also reports the same $2500

 

Esty, I don't think you will get a 1099 from PayPal for Ebay sales.  Since Ebay took over payment processing, even when a buyer pays with PayPal, the transaction never touches your PayPal account.  You will only get a 1099 from Ebay.

[esty]

13 minutes ago, bergie33 said:

Esty, I don't think you will get a 1099 from PayPal for Ebay sales.  Since Ebay took over payment processing, even when a buyer pays with PayPal, the transaction never touches your PayPal account.  You will only get a 1099 from Ebay.

i might be overthinking it, hopefully that's how it will work...,BTW, do you have any recaro parts, i don't need sliders

Edited May 25, 2022 by esty

[bergie33]

12 minutes ago, esty said:

i might be overthinking it, hopefully that's how it will work...,BTW, do you have any recaro parts, i don't need sliders

 

Not right now.  I just have my old seats that I am restoring.  I will likely have the old black vinyl and maybe some of the padding pieces available once I get them all put together.  I will let you know when/if I have something available, but it likely won't be for a year or so.

[esty]

30 minutes ago, bergie33 said:

 

Not right now.  I just have my old seats that I am restoring.  I will likely have the old black vinyl and maybe some of the padding pieces available once I get them all put together.  I will let you know when/if I have something available, but it likely won't be for a year or so.

don't lose sleep over me...thanks

[conkitchen]

1 hour ago, esty said:

don't lose sleep over me...thanks

 

 

 

 

 

Edited May 25, 2022 by conkitchen