[RBW] Re: PayPal now taxing goods & services transactions >$600
Thank you for that explanation, Julian! On Saturday, October 9, 2021 at 5:06:11 AM UTC-7 ...wrote: > > Unless you are actually making a net profit on your bike and other sales > paid via Paypal this will have no impact other than requiring a bit more > carful record keeping. Even if you get a 1099 you can report a cost basis > equal to the 1099 amount if you sold for less than what you originally > bought the items for, so you will not pay any taxes. Of course you should > retain some sort of record of original purchase price versus what you sold > it for. > > If someone is selling 10s of thousands of dollars of stuff through Paypal > and claims a high cost basis they should be fully prepared to back it up. > For most of us it is not a big deal -- the law regarding what is taxed has > not changed, just the reporting -- designed to catch those who are actually > engaged in a profit- making business but who might be evading taxes. > > Julian Westerhout > Bloomington, IL > On Friday, October 8, 2021 at 9:33:20 PM UTC-5 Erik wrote: > >> I'm pretty certain that this is a new requirement that takes effect on >> January 1, 2022. It will result in PayPal, Venmo, etc. being required to >> issue 1099-K forms to anyone who sells in excess of $600 per year. The old >> threshold was $20,000 and 200 transactions. It's been lowered to $600 no >> matter the number of transactions. PayPal is starting to inform customers >> now it seems. >> >> >> > -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/a4143bed-0c86-4c41-af26-40cf4cab2210n%40googlegroups.com.
[RBW] Re: PayPal now taxing goods & services transactions >$600
Unless you are actually making a net profit on your bike and other sales paid via Paypal this will have no impact other than requiring a bit more carful record keeping. Even if you get a 1099 you can report a cost basis equal to the 1099 amount if you sold for less than what you originally bought the items for, so you will not pay any taxes. Of course you should retain some sort of record of original purchase price versus what you sold it for. If someone is selling 10s of thousands of dollars of stuff through Paypal and claims a high cost basis they should be fully prepared to back it up. For most of us it is not a big deal -- the law regarding what is taxed has not changed, just the reporting -- designed to catch those who are actually engaged in a profit- making business but who might be evading taxes. Julian Westerhout Bloomington, IL On Friday, October 8, 2021 at 9:33:20 PM UTC-5 Erik wrote: > I'm pretty certain that this is a new requirement that takes effect on > January 1, 2022. It will result in PayPal, Venmo, etc. being required to > issue 1099-K forms to anyone who sells in excess of $600 per year. The old > threshold was $20,000 and 200 transactions. It's been lowered to $600 no > matter the number of transactions. PayPal is starting to inform customers > now it seems. > > > -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/fcb5184a-86b8-4410-a88a-71b464caef53n%40googlegroups.com.
[RBW] Re: PayPal now taxing goods & services transactions >$600
I'm pretty certain that this is a new requirement that takes effect on January 1, 2022. It will result in PayPal, Venmo, etc. being required to issue 1099-K forms to anyone who sells in excess of $600 per year. The old threshold was $20,000 and 200 transactions. It's been lowered to $600 no matter the number of transactions. PayPal is starting to inform customers now it seems. -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/e07938f4-81ae-4ec6-b90a-0cb66dae4b9bn%40googlegroups.com.
[RBW] Re: PayPal now taxing goods & services transactions >$600
I was taken aback by this at first as well, but as Garth pointed out it seems to only be for very high annual sales. Otherwise I'd be requesting F like crazy. Pat in DC On Wednesday, October 6, 2021 at 10:25:48 AM UTC-4 rickur...@gmail.com wrote: > > I’m pretty sure you can just provide your Social Security number, which > PayPal already has. So that shouldn’t be a problem. Other than that, just > sucking it up and paying taxes that you owe isn’t the end of the world. > On Tuesday, October 5, 2021 at 2:18:20 PM UTC-4 esoter...@gmail.com wrote: > >> >> Howdy all, >> >> I just sold a frame to a fellow list member, and the transaction was made >> through PayPal goods & services option. I then received an email from PP >> with the heading "New IRS requirement – take action now". The body of the >> email is as follows: >> >> [image: D3F78C43-96EF-4845-9A1A-A418640B1F50_1_201_a.jpeg] >> >> So not only do they want me to provide a tax ID number, but it looks like >> they'll now be taxing any transaction over $600! Also, it's not clear >> whether this is for any single transaction over $600, or worse, if it's a >> cumulative annual total. >> >> In the past when I've sold something to folks on this list and several >> other lists, I usually give the buyer the choice of using friends & family >> (FF) or goods & services (GS), letting them know how much I'd like to net >> for each item (and letting them know how much extra they would have to add >> if they choose GS). Roughly about 2/3 of my selling transactions have been >> with FF, usually because this small forum of like-minded folks tends to >> foster trust, and most of the items I've sold are less than $200. But the >> other 1/3 choose GS, mainly under the guise of transaction security >> (especially for a higher priced item). >> >> But now that we'll apparently be taxed on anything over $600, what other >> option(s) are there out there to provide buyer protection without the >> seller having to pay taxes or registering an ID number? >> >> ~Mark >> Raleigh, NC >> >> >> >> >> -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/9d9410d0-69c9-410e-a477-59983288218cn%40googlegroups.com.
[RBW] Re: PayPal now taxing goods & services transactions >$600
I’m pretty sure you can just provide your Social Security number, which PayPal already has. So that shouldn’t be a problem. Other than that, just sucking it up and paying taxes that you owe isn’t the end of the world. On Tuesday, October 5, 2021 at 2:18:20 PM UTC-4 esoter...@gmail.com wrote: > > Howdy all, > > I just sold a frame to a fellow list member, and the transaction was made > through PayPal goods & services option. I then received an email from PP > with the heading "New IRS requirement – take action now". The body of the > email is as follows: > > [image: D3F78C43-96EF-4845-9A1A-A418640B1F50_1_201_a.jpeg] > > So not only do they want me to provide a tax ID number, but it looks like > they'll now be taxing any transaction over $600! Also, it's not clear > whether this is for any single transaction over $600, or worse, if it's a > cumulative annual total. > > In the past when I've sold something to folks on this list and several > other lists, I usually give the buyer the choice of using friends & family > (FF) or goods & services (GS), letting them know how much I'd like to net > for each item (and letting them know how much extra they would have to add > if they choose GS). Roughly about 2/3 of my selling transactions have been > with FF, usually because this small forum of like-minded folks tends to > foster trust, and most of the items I've sold are less than $200. But the > other 1/3 choose GS, mainly under the guise of transaction security > (especially for a higher priced item). > > But now that we'll apparently be taxed on anything over $600, what other > option(s) are there out there to provide buyer protection without the > seller having to pay taxes or registering an ID number? > > ~Mark > Raleigh, NC > > > > > -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/21fd05a1-c4be-4fa8-90f8-a60fab0834d8n%40googlegroups.com.
[RBW] Re: PayPal now taxing goods & services transactions >$600
USPS money orders in the mail. Your transaction cost, a first class stamp, plus 1 dollar for the money order, IIRC. Mike SLO CA On Tuesday, October 5, 2021 at 12:33:27 PM UTC-7 Garth wrote: > According to Paypal > https://www.paypal.com/us/smarthelp/article/How-does-PayPal-report-my-sales-to-the-IRS-Will-I-receive-a-1099-tax-statement-FAQ729 > > And this > https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html > > > https://thenextweb.com/news/new-irs-rules-require-paypal-to-report-sales-information > > The tax seems geared towards those who sell good and services as a > business(more than 200 transactions, >$20k a year), not people who sell an > occasional used bike frame or other part. > > Requiring the tax ID number, SSN EIN etc .. sigh . I remember when > the SSN was intended to be private way back when > > > > That said is any of this really true ? I ask of myself because in > all honesty . I call up "the business/organization" and I speak to a > representative of the company or organization . but never the *actual > company* itself. That's right ... the "company" isn't a living being > . it's a made-up fake entity. A "representative of reputed company" is > thus fake too (they can only be/represent themselves as there is no > other to be than self ). > > On Tuesday, October 5, 2021 at 2:18:20 PM UTC-4 esoter...@gmail.com wrote: > >> >> Howdy all, >> >> I just sold a frame to a fellow list member, and the transaction was made >> through PayPal goods & services option. I then received an email from PP >> with the heading "New IRS requirement – take action now". The body of the >> email is as follows: >> >> [image: D3F78C43-96EF-4845-9A1A-A418640B1F50_1_201_a.jpeg] >> >> So not only do they want me to provide a tax ID number, but it looks like >> they'll now be taxing any transaction over $600! Also, it's not clear >> whether this is for any single transaction over $600, or worse, if it's a >> cumulative annual total. >> >> In the past when I've sold something to folks on this list and several >> other lists, I usually give the buyer the choice of using friends & family >> (FF) or goods & services (GS), letting them know how much I'd like to net >> for each item (and letting them know how much extra they would have to add >> if they choose GS). Roughly about 2/3 of my selling transactions have been >> with FF, usually because this small forum of like-minded folks tends to >> foster trust, and most of the items I've sold are less than $200. But the >> other 1/3 choose GS, mainly under the guise of transaction security >> (especially for a higher priced item). >> >> But now that we'll apparently be taxed on anything over $600, what other >> option(s) are there out there to provide buyer protection without the >> seller having to pay taxes or registering an ID number? >> >> ~Mark >> Raleigh, NC >> >> >> >> >> -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/7f508b50-9e23-4108-942a-4bc9165ce50fn%40googlegroups.com.
[RBW] Re: PayPal now taxing goods & services transactions >$600
According to Paypal https://www.paypal.com/us/smarthelp/article/How-does-PayPal-report-my-sales-to-the-IRS-Will-I-receive-a-1099-tax-statement-FAQ729 And this https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html https://thenextweb.com/news/new-irs-rules-require-paypal-to-report-sales-information The tax seems geared towards those who sell good and services as a business(more than 200 transactions, >$20k a year), not people who sell an occasional used bike frame or other part. Requiring the tax ID number, SSN EIN etc .. sigh . I remember when the SSN was intended to be private way back when That said is any of this really true ? I ask of myself because in all honesty . I call up "the business/organization" and I speak to a representative of the company or organization . but never the *actual company* itself. That's right ... the "company" isn't a living being . it's a made-up fake entity. A "representative of reputed company" is thus fake too (they can only be/represent themselves as there is no other to be than self ). On Tuesday, October 5, 2021 at 2:18:20 PM UTC-4 esoter...@gmail.com wrote: > > Howdy all, > > I just sold a frame to a fellow list member, and the transaction was made > through PayPal goods & services option. I then received an email from PP > with the heading "New IRS requirement – take action now". The body of the > email is as follows: > > [image: D3F78C43-96EF-4845-9A1A-A418640B1F50_1_201_a.jpeg] > > So not only do they want me to provide a tax ID number, but it looks like > they'll now be taxing any transaction over $600! Also, it's not clear > whether this is for any single transaction over $600, or worse, if it's a > cumulative annual total. > > In the past when I've sold something to folks on this list and several > other lists, I usually give the buyer the choice of using friends & family > (FF) or goods & services (GS), letting them know how much I'd like to net > for each item (and letting them know how much extra they would have to add > if they choose GS). Roughly about 2/3 of my selling transactions have been > with FF, usually because this small forum of like-minded folks tends to > foster trust, and most of the items I've sold are less than $200. But the > other 1/3 choose GS, mainly under the guise of transaction security > (especially for a higher priced item). > > But now that we'll apparently be taxed on anything over $600, what other > option(s) are there out there to provide buyer protection without the > seller having to pay taxes or registering an ID number? > > ~Mark > Raleigh, NC > > > > > -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to rbw-owners-bunch+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/446150c5-c76d-4a1b-99a8-2ade41f8e2c5n%40googlegroups.com.
