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buzzy56, Cold Pizza, Encoreman, It's for sale
Total Likes: 5
Original Post (Thread Starter)
#774623 01/30/2022 3:35 PM
by It's for sale
It's for sale
I'm confused. Different press articles say different things.
A 1099k form to be issued after $600 total received.
One article says " friends and family " transactions exempt.
Anybody checked with a " Tax advisor" yet?
Liked Replies
#774637 Jan 30th a 06:08 PM
by Cold Pizza
Cold Pizza
Just one more reason why I won't sell on Ebay,or use Paypal.
2 members like this
#774789 Feb 3rd a 06:59 PM
by Paul Bell
Paul Bell
I dont think friends and family is affected, as those are not suppose to be "goods". If you get paid for goods via F&F, technically you are suppose to file on those but it wont trigger a 1099.

Any payment service is affected, Venmo included. It's not ebay, paypal, venmo, doing this, they are responding to government regulation unfortunately.

I think Facebook marketplace is OK for now, but paypal will get you if they pay through there I think.

I think the thing to do is have a cost basis ready to go on everything. We are collecting every receipt we can get. Here's some info:

1 member likes this
#774812 Feb 4th a 04:30 AM
by Oldgas
Originally Posted by Speedracer
Dang, I didn’t know that. Then they also pay taxes when they originally bought the same item from their supplier too !!!!!! Then the same money is used to pay the employees who get taxed on their paycheck. Whew.

If a seller does not have a sales tax account number and pays tax on items to resell, that tax, the cost of the item, shipping and other legit expenses are deducted from his gross sales to get a net profit that is taxed as income.

A vendor who charges sales tax gets an account number from the state. He uses that number when he buys inventory to resell and doesn't pay a sales tax on it. He also can deduct inventory costs and other expenses to determine taxable net profit income.
1 member likes this
#777684 May 18th a 09:16 PM
by It's for sale
It's for sale

Tax rules have changed
We’ve got you covered with all the details:
Beginning January 1, 2022, the IRS implemented new reporting guidelines for individuals receiving goods and services payments on PayPal and other platforms totaling $600 or more per year.

So what exactly does this mean for you?

Well, if you’re getting payments from friends and family members, this won’t apply (lucky you!). Friends and family payments are things like splitting a bill, sharing apartment expenses, or paying back friends. None of these are reported.

The new tax requirements only apply to goods and services payments. These transactions are tagged in the app by a buyer, indicating they’re purchasing something like a couch from a seller. Payments received by a Seller Profile are also goods and services payments.

If you receive over $600 in goods and services payments, we’ll automatically keep track of these payments and provide you with a 1099-K form at the end of the year. If your tax info is not complete, we’ll reach out to you with instructions.

And remember, this only applies to receiving goods and services payments. Payments that you send are not reported.

This info isn’t tax advice. Please consult your tax advisor about these. If you need more info, you can learn more here.
1 member likes this

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