IRS Delayed the 1099 600$ rule for one year. See article

[fwafwow]

@mtwarden @fwafwow - in addition to PayPal sending you the 1099K, they send the IRS your 1099K. You definitely need to account for it on your tax return even if it's 100% losses (Starting in 2024/FY2023 now). In the past, I've just ignored it too as I'm in the same camp - you don't make money selling used gear.

If you ignore it on your return and the IRS has it on their end, I'd imagine that's probably a flag that would increase your chances of getting audited.

Yep. I'm not going to ignore it (I guess I never was) because I'm pretty confident that TurboTax will include a function to deal with it. To me it's pretty incredible how robust that program has been over the years - so this new wrinkle should be easily solved. I have absolutely zero worry.

Using F&F, Venmo F&F, Zelle, Money Orders avoids all of this, but you lose the buyer/seller protection that comes with PayPal. Not an issue if it's a site like this though where people have been around for years, and have a history here you can check, but harder when you want to sell stuff between "unknown" buyers/sellers.

Agreed. Although I think sellers on here are not yet as aware of the scams that buyers pull on people when using G&S. It's becoming so prevalent in the knife buying community that it has caused me to go to bizarre lengths in deciding whether to sell a high-end item to someone - especially when that person didn't have much history. Bottom line on scams - do your due diligence on any transaction.

 

[Brendan]

You are definitely good to go as a buyer! Insisting on F&F as a seller to avoid being scammed is perhaps paranoia on my part.

I actually think you may have it backwards. G&S offers seller protection if you ship to a confirmed address and can document the sale. Using F&F is against PayPal terms of services and I've heard (although haven't experienced) of F&F transactions getting reversed.

I personally insist on G&S as a seller if I don't know the buyer, and will only ship to a confirmed address.

Have you heard something the opposite? There's documentation of a shipped and received package to a confirmed and verified address, people claiming they received an empty box or something like that?

May just have to tell PayPal to screw off entirely and start using Zelle exclusively (As a seller anyways)...

 

[fwafwow]

I actually think you may have it backwards. G&S offers seller protection if you ship to a confirmed address and can document the sale. Using F&F is against PayPal terms of services and I've heard (although haven't experienced) of F&F transactions getting reversed.

I personally insist on G&S as a seller if I don't know the buyer, and will only ship to a confirmed address.

Have you heard something the opposite? There's documentation of a shipped and received package to a confirmed and verified address, people claiming they received an empty box or something like that?

I have seen (on a FB group that is dedicated to EDC) sellers who shipped following receipt of G&S and the buyer insisting that the box was empty, or never received, etc. PP apparently sides on the side of the buyer and it's very hard for the seller to prove anything, so in some cases the seller is out the item, and the funds.

Yes, F&F is against the PP terms of service, but there are plenty of things that people do that don't follow the terms of service - like selling knives.

May just have to tell PayPal to screw off entirely and start using Zelle exclusively...

I hear you, but that's where the legit buyers are very reluctant to pay with Zelle, unless they know you. Hence the conundrum, and one of the reasons I hesitate to sell anything anymore.

 

[ETtikka]

Pp g&s offers zero seller protection, ZERO

 

[ozyclint]

Will the IRS account for inflation?
If I sell something for $1100 that I bought for $1000 5 years ago I'm not making a profit.

 

[fwafwow]

Will the IRS account for inflation?
If I sell something for $1100 that I bought for $1000 5 years ago I'm not making a profit.

No

 

[ALF]

I'm confused.....I thought we had a year to "get ready" concerning the $600 threshold......


Just got this email from PP:

Provide your tax info to meet the IRS reporting requirements

Starting 2022, if you receive $600 or more in payments for goods and services in a year, we and other payment services companies are required by the IRS to report your earnings and send you a 1099-K form.

Provide your tax info now to make sure your forms are ready in time.

 

[fwafwow]

I'm confused.....I thought we had a year to "get ready" concerning the $600 threshold......


Just got this email from PP:

Provide your tax info to meet the IRS reporting requirements

Starting 2022, if you receive $600 or more in payments for goods and services in a year, we and other payment services companies are required by the IRS to report your earnings and send you a 1099-K form.

Provide your tax info now to make sure your forms are ready in time.

I think PP is confused. And not up to date in what they are communicating.

 

[ALF]

I think PP is confused. And not up to date in what they are communicating.

Exactly, same as last year when they hounding you for the same BS....

 

[Brendan]

Pp g&s offers zero seller protection, ZERO

Not true - but it's not 100%. You do have record of shipment and delivery to a PayPal-verified address. The problem is if the receiver claims that it was an empty box or not what they ordered.

The problem is, F&F doesn't offer any either. Basically as a seller your best options are Cash, Money Order, Zelle (to my knowledge anyways).

 

[ETtikka]

Not true - but it's not 100%. You do have record of shipment and delivery to a PayPal-verified address. The problem is if the receiver claims that it was an empty box or not what they ordered.

The problem is, F&F doesn't offer any either. Basically as a seller your best options are Cash, Money Order, Zelle (to my knowledge anyways).

Correct, if the seller ships the item, it shows up , as described, the buyer contacts PayPal and says item is missing, PayPal sides with buyer, seller has ZERO protection in the end, lots of dudes been burnt by this

 

[ozyclint]

No

Thought not

 

[BRTreedogs]

Thought not

I don't think you'll owe the irs ether way. Since your not from US
Do you file taxes in the US?

 

[ozyclint]

Yeah I was just making the point that it only works in the governments favour.

 

[SHTF]

^ thanks!

I think in 23 I'll ask for F&F or a money order to avoid the hassle; fortunately I have made enough sales here (and elsewhere) over a long period, that it should be pretty easy to see it's not a scam

Exactly That is my work around as well. So many deals on Rokslide throughout the years. I definitely cant say they were all at a loss either. But that does not mean Im going to give it to those crooks at the IRS. Especially with how they are spending our tax dollars.

 

[highside74]

So you don’t have to pay taxes on items sold in 2022?

From the link posted I read that they have done away with the 3rd party report of over $600 or 200 transactions for the calendar year 2022. It says nothing for 2023 that I see.

 

[fwafwow]

From the link posted I read that they have done away with the 3rd party report of over $600 or 200 transactions for the calendar year 2022. It says nothing for 2023 that I see.

It’s merely a delay. Unless there is another delay, the rule applies now and reporting is required in 2024 for transactions that take place this year.

 

[Billy Goat]

When does PayPal jump fees to cover the administrative work? Need to start asking F&F or plus 5%.....

 

[BRTreedogs]

I mite just quit reselling.
I've had stuff listed as friends and family.
Members agree to f&f
Then pay me G&S, then act at all confused.
Even had i refunded them i think it would get reported. When you refund it still shows a transaction.
And PP wasn't gonna protect them on a firearms part any ways.

 

[Szwampdonkey]

People worry too much geez. Sell what you want for what you want and dont report a single red cent of it as its all net loss, done. Make the IRS prove otherwise, they wont.

Geez people if youre going to sell something for $700 then report it on your tax return as income you deserve to lose money.