paypal
 

Just read this on new tax laws. If you sell a lot of items and use paypal they
will be sending you a 1099K which has to be entered on your tax form as income. Squeeze the little guy and let the millionaires skate.

Re: paypal
 

OMG! Say is isn't so. I hate 1099's

Re: paypal
 

I heard they would send it after you reach $20k, anyone know if that's right?

Re: paypal
 

I wonder how incoming PayPal money would prove profit. Say you have $30,000 in a car and you sell it for $20,000 on Ebay and it is paid through PayPal,guess that is where you have to have receipts at the audit.

Re: paypal
 

The burden of proof is on you............remember, it's the IRS and a broke government grubbing for bucks.

Re: paypal
 

http://www.irs.gov/businesses/articl...254258,00.html

Jack E/NJ

Re: paypal
 

If I read this correctly you have to have both 200 transactions and $20,000 in a calendar year. But, this is only the beginning guys, hang on! At what point does our hobby become a business? Usually one sells extra unneeded parts to buy more parts for their cars. Too, you generally sell an antique vehicle only to buy another antique vehicle...

Shadetree


Q. I sell items on e-Bay and accept merchant payments cards for payments. How do the payment settlement entity reporting rules affect me?
A. You will receive a Form 1099-K for the gross amount of proceeds for the goods or services purchased from you through use of a merchant payment card in a calendar year. Further, if you are set up to accept payments using a third party settlement organization and the total number of your transactions exceeds 200 AND the aggregate value exceeds $20,000 in a calendar year, you will receive a Form 1099-K from the third party settlement organization.

Re: paypal
 

I was informed in June of 2010 by a reliable source.It went into effect Jan 1,2011.

Re: paypal
 

Isn't that just great? My wife sells Barbie Dolls for a friend trying to get rid of a lot of "stuff" her deceased sister left her. 100% of the sales after fees goes to my wife's friend to help her out. Her friend is an older lady who is not computer literate. I have to wonder if PayPal counts shipping costs as part of what they report. Both eBay and PayPal now charge a fee for the value of the shipping. The vast majority of the parts I sell are sold for what I paid for them, sometimes less if I am tired of moving them around or someone needs them for a project as opposed to resale. That does not count the expense of travelling thousands of miles per year, swap meet spaces, etc to get the parts in the first place. If you run a business, you probaly keep all of those records, but hobbyists?

Re: paypal
 

My accountant advised me to keep records of both sales and purchases...and if they net out to zero...he could show that it was just a hobby where parts were sold to buy more parts.

Re: paypal
 

I like everyone else that decided to work for a living paid into social security and most of my working years medicare. Years ago I assumed at age 65 I would have full medical coverage from government for what I paid into or at least good insurance from the company I worked for for 42 years. The company changed their mind after I retired and took away all retirees insurance ,medicare doesn't pay all so a lot of guys I worked with had to get jobs at Home Depot ,Walmart etc to pay for suplemental to medicare. I always figured mayby I could make a little selling off my stash to take brunt of supplemental insurance,so much for that. Always the same thing the working class who has to pay for welfare and medicaid.:mad:

Re: paypal
 

"Ask not what your country can do for you..."

Re: paypal
 

I did 4 years for my country in the U.S.Navy and was also promised VA benifits. Anybody try to sign up lately? Or not even lately. The day I lost my insurance I applied for VA benifits and couldn't even get a flu shot and it was 2006 so don't blame Obama.

Re: paypal
 

It is true that you must exceed both $20k in gross sales as well as 200 transactions in a calendar year.

Re: paypal
 

Grizz,
If you accept PAY PAL or Credit Cards you will be shadowed.
Someone has to pay for the 47% that get everything for free.
Charlie ny

Re: paypal
 

What about a paltry $600.00 on net earnings

Re: paypal
 

37 coupe, Try to sign up again for them VA benifits. I signed up it takes a little time but well worth it. Good luck

Re: paypal
 

Re: paypal
 

Hi 37 coupe,try again my son lost his job & insurance served 8 years in Navy & needs an operation, They are going to take care of it. You have to be persistent. Only problem for him is geographical,he has to go to Saginaw a few times & then Ann Arbor & he lives in Northern Mi. but that is being worked out. ( He served in Desert Storm). We have to quit protecting the world we can't afford it, both monetarily & most of all lives. (My opinion)
Gary.

Re: paypal
 

The thing about the irs is that if they smell blood theyll move in for the kill. Someone is
gonna figure why not have a 100 dollar limit on money received and let the fools prove
its not profit.