I'd like to offer the "correct" info about tax reporting. I am a professional tax preparer and make my living understanding the correct nuances of the US tax code. I also have an eBay store, so I have used PayPal for many years. I prefer it for my own purchases and for those who buy my product. (There is a shameless plug below.)
1. As long as you mark the transaction as "friends and family" or whatever: PayPal, Venmo, or whomever will NOT report the money to the IRS. 2. As a buyer, PayPal, Venmo, or whomever, offer you protections when you mark a transaction as business, so if you are wary of a seller's honesty by all means mark the payment as business. Even though it might mean that the seller will be forced to do what the law says he must anyhow. And even though the seller might be forced to pay a transaction fee. 3. If you sell on eBay or another auction site, it will be reported to the IRS if your annual total is greater than or equal to $600 regardless how you pay. 4. It is NOT, I repeat NOT, a big deal to get a 1099-K. You will have to file a Schedule C where you report the 1099-K income, plus expenses. As long as your expenses exceed your income, you don't pay any tax (you might even show a loss). The IRS cannot establish the market value of the product you sell; you get to. And I'm sure you are selling that old piece of junk (er precious treasure) below market value. And of course PayPal, Venmo, or whoever's transaction fees are expenses you can claim too. 5. There are other benefits including that your professional tax preparation or tax software is now a deductible expense. So you can actually save money in the process! For those of you outside the United States, I'm sorry you have to read this stuff. Now for the shameless plug: I make and sell 3D printed PowerPole adapters for the KX3, KX2, and FT-81x line of radios. These adapters screw onto the rig and let you work only with PowerPole connectors. This is essential for the FT-81x. But it is a great convenience for the KX's especially when using Bioenno or other external batteries that have premade PowerPole connectors. You can find my product on eBay at: https://www.ebay.com/str/n0wlradio or pay me directly via PayPal at jonpol...@gmail.com Jon N0WL On Thu, May 12, 2022 at 11:11 AM Thomas Valenti <tomk...@gmail.com> wrote: > There is another, very important reason NOT to accept payments via PayPal > for casual, hobby related transactions. > > Effective this year, PayPal (and Venmo) now issues an IRS form 1099-K to > anyone receiving more than $600 in a calendar year. Therefore, you have to > report your proceeds as income, unless you can provide documentation that > you sold the item for less than you paid for it. A hassle just not to be > invited. The last thing you need is a reason for the IRS to scrutinize your > tax return. > > Ask me how I know. Last year, I sold a bunch of ham radio equipment and > took payment by PayPal. When the 1099-K arrived, my CPA (who happens to be > my XYL) went crazy. Naturally, I did not have documentation about exactly > when and for how much I had acquired some of this gear. > > KISS - take payment the old fashioned way - via check sent through snail > mail. > > Tom K3AJ > ______________________________________________________________ > Elecraft mailing list > Home: http://mailman.qth.net/mailman/listinfo/elecraft > Help: http://mailman.qth.net/mmfaq.htm > Post: mailto:Elecraft@mailman.qth.net > > This list hosted by: http://www.qsl.net > Please help support this email list: http://www.qsl.net/donate.html > Message delivered to jonpol...@gmail.com > ______________________________________________________________ Elecraft mailing list Home: http://mailman.qth.net/mailman/listinfo/elecraft Help: http://mailman.qth.net/mmfaq.htm Post: mailto:Elecraft@mailman.qth.net This list hosted by: http://www.qsl.net Please help support this email list: http://www.qsl.net/donate.html Message delivered to arch...@mail-archive.com
