Sellers Requesting PayPal Friends and Family

[Atticus]

I only do f and f. Why I quit selling on forum. And im.not gonna pay taxes

Agreed. I’m sure there’s a way to offset the 1099, but it’s too much of a PIA.

 

[Litos]

You would buy/sell from @eBayOakleys ?

Blocked them a million years ago

 

[DaysOfNoah]

I only do f and f. Why I quit selling on forum. And im.not gonna pay taxes

Yeah I hear you @Dallas O Hog - The extra IRS income tax at the end of the year is ridiculous. Completely unfair and it’s impossible for most of us to produce paperwork to show them that we didn’t make 100% profit on all of our PayPal G&S.

Almost time for a Boston tea party but I’m not throwing my Oakley‘s overboard. (The water could de laminate the lenses ; )

I’ve done quite a bit of F&F, but only when I’m not afraid to lose the item or money. And there are some guys that are just such good friends on the forum now.

If it’s a first transaction or the person doesn’t have enough feedback, or if there’s any sense of risk, buyer and seller beware and stick with G&S. But it’s an extra 20% or whatever on the sellers income tax at the end of the year.

 

[SharkSugender]

Isn't it already taxed when the buyer pays with G&S?

 

[DaysOfNoah]

Isn't it already taxed when the buyer pays with G&S?

Others have explained this better but the point is that in addition to any immediate costs/taxes/fees at time of transaction, at the end of the year the seller is responsible for 100% of the profit to be on their IRS income tax, if they are a US citizen.

So if I sold something for $600 on PayPal goods and services, even if that is at a loss, unless I have my original receipt and fill out enough paperwork the IRS assumes that all $600 was 100% profit (assumes my original cost was $0) and I’ll owe an extra ~20% or ~$120 at the end of the year.

If I misunderstand something, someone please correct me. This is new legislation effective the beginning of 2022 for US citizens

 

[DaysOfNoah]

Btw, most commercial businesses already handled this sort of thing and have for years. Any profit they make they pay taxes on quarterly or at whatever cadence. A few people on here already operate as a business and so nothing has changed for them.

What is so annoying is that for all of us amateurs and hobbyists and collectors that constantly buy sell and trade our hobbies, the IRS is treating us like a commercial enterprise or a corporation.

What amateur collectors kept all their receipts? Who can remember exactly what they paid for every item? And can prove it? Why should the IRS assume our cost was always zero dollars and everything is profit?

I get it though, the IRS is trying to avoid businesses dodging taxes and doing things that are wrong. it’s just a really poor implementation that creates a lot of paperwork for the rest of us and headache.

Now every time a pair of Oakley‘s trades hands the IRS just keeps skimming more and more and more money off each transaction and hand off.

 

[SharkSugender]

Others have explained this better but the point is that in addition to any immediate costs/taxes/fees at time of transaction, at the end of the year the seller is responsible for 100% of the profit to be on their IRS income tax, if they are a US citizen.

So if I sold something for $600 on PayPal goods and services, even if that is at a loss, unless I have my original receipt and fill out enough paperwork the IRS assumes that all $600 was 100% profit (assumes my original cost was $0) and I’ll owe an extra ~20% or ~$120 at the end of the year.

If I misunderstand something, someone please correct me. This is new legislation effective the beginning of 2022 for US citizens

THAT IS COMPLETE BULLSH|T! we already pay taxes when we buy BRAND NEW. even second hand buyers and sellers shouldn't pay taxes on stuff that's used. This is BS! I'm moving to Brazil

Who TF keeps receipts anyway, i know i don't

 

[SharkSugender]

I guess if i do need to sell anything i'll just do F&F to skip the hassle of filing additional paperwork. It just pisses me off with all these taxes. Stupid ridiculous tax on everything

 

[Msgt Oakley]

I guess if i do need to sell anything i'll just do F&F to skip the hassle of filing additional paperwork. It just pisses me off with all these taxes. Stupid ridiculous tax on everything

Yea, they are going to make up for those stimulus packages one way or another!!

 

[worldcollapse]

for what it's worth, in the event those 1099s do ever come to fruition [i've been selling online for a longgg time and never encountered one with paypal], you can write off basically all business oriented expenses. labels, supplies, hell even the membership fee for this forum. any sort of 'receipts' for purchase, whether it be from another member/ebay/etc can be used to write off the incurred 1099 balance owed. any valid tax-prep person would be able to take care of this and if you do your own taxes, you really only need to worry about physical receipts to be delivered in the event of an audit.

i think the entire subject of the 2022 1099-k fiasco is kind of blowing out of proportion. i did read talks of them revising it but we'll see if it really actually happens. zelle/venmo/cashapp all are viable as well but i am still a strong proponent of paypal g&s covering your ass. as others said in previous pages, f/f with that large of a sum of money could bite you in the ass. and nonetheless, no matter what paypal type you use, ALWAYS use a linked credit card for added security.