PayPal Changes

[Yates/ vintage]

A private transaction or through E bay ?

Private

 

[kos22us]

my understanding is if you receive 600- or more through ebay/paypal you must file a tax form at the end of the year, if you sell here on the cabe and only take paypal as FF, does that get you out of the tax filing ?

 

[49autocycledeluxe]

my understanding is if you receive 600- or more through ebay/paypal you must file a tax form at the end of the year, if you sell here on the cabe and only take paypal as FF, does that get you out of the tax filing ?

I am pretty sure that is the case, we will all know better after this year's tax season.

 

[BatWaves]

Venmo

 

[GTs58]

Venmo

I just read that venmo is also required to do the same as Pay Pal.

my understanding is if you receive 600- or more through ebay/paypal you must file a tax form at the end of the year, if you sell here on the cabe and only take paypal as FF, does that get you out of the tax filing ?

If you are selling on eBay and a buyer pays you thru Pay Pal, venmo etc. then that is recorded. After $600 in that year, they are required to send you a 1099 with that years gross amount that you have been given from buyers. I assume it's the gross amount before the ebay and Pay Pay fees are take out. Then you have to claim that amount as income when you file your income taxes, but you only have to pay taxes on your adjusted gross income. How much of that total income from selling on eBay that can be deducted off your total gross income is the issue here, and a PITA keeping all the records of the things Uncle Sam will actually let you deduct off your sales. Like eBay fees, Pay Pal fees, shipping costs, packing costs, your cost of item sold, overhead like paper, ink, office rent, coffee, asprin or anything else that cost you money that was involved in the sale that can actually be deducted. You will need have records to show that you did not make any profit on each and every sale if you want to be tax free on the amount that eBay has on that 1099. If someone sends you money as friends and Family, then it is not recorded. Back in the day some eBay sellers would take or require money orders and that money transaction had no third party involved, so there were no records of an actual transfer of funds. Those days are long gone. Finding out what all you can deduct doing an eBay sale might require some help from a tax man or someone that actually knows. Years ago I was really surprised at how little you could actually deduct and it's probably even less today.

 

[catfish]

Personal checks are good too.

 

[SirMike1983]

The $600 1099-K threshold for goods/services also applies to Venmo and similar because the new ceiling was part of the ARPA law passed by Congress. Form 1099-K went from having a floor of $20,000 in aggregate payments and 200 transactions to a threshold of $600 in aggregate payments regardless of number of transactions. The new rule is effective beginning with payment transactions settled after December 31, 2021. The effect of the rule is you get $600 at Venmo, $600 at Paypal, and so on. The number of IRS agents on-staff to enforce these requirements also increased recently via the Inflation Reduction Act.

Personally, I think the changes are ridiculous and just grab the small-time hobbyist. The government is avaricious if nothing else.

That said, some people prefer to use creative payment methods to evade taxes, but in the grand scheme, that is not a good idea. If you prefer checks, cash, money orders, etc., that's fine for personal convenience or preference, but getting creative to evade taxes is not worth the trouble that is federal tax evasion. If you have substantial income from bike stuff, best to deal squarely and pay taxes.

 

[JimScott]

All of this will be for not as the economy is being flipped to crypto by years end... USC (United States Crypto) already exists on the global currentcy exchange held at artifical strength @ $1USC=$1USD. This is not a Alex Jones conspiracy.

Look at your change... this "change shortage" was nothing but a scrubbing and audit of what was in the market. They took all of the older coinage and minted all 2020 and 2021 coins instead. They even tried a paper money "shortage" for a short time also. Just watch what theyre doing, the warnings have come now for over 20 months.
Pre 1982 pennies are worth 3.2 cents, pre 1995 nickles are 7 cents... typical electric car battery has: 25 pounds of lithium 60 pounds of nickel 44 pounds of manganese 30 pounds cobalt 200 pounds of copper 400 pounds of aluminum, steel, and plastic The first 4 ingredients are from limited sources and will continue to rise in cost.

Chase bank is leading the way internally not only for USC but pushing the "no financing" on gas powered vehicles. If you cant finance it there will be no market.

 

[kos22us]

thanks for the insight, anyone can say hey if you're doing business you have to pay tax ,but I say when the threshold goes from 19,999.99 down to 600- that is a radical change

 

[bikesnbuses]

Guess what everyone..The IRS apparently cant make up its MIND!!

The IRS will implement a phase-in over the next two years to get to its desired $600 threshold, so for tax year 2024 the threshold will be $5,000 and in tax year 2025 it will be $600. These are significant changes from the original $20,000 (and more than 200 transactions).