Primarily Petroliana Shop Talk Forums Shop Talk Petroliana Forums General Petroliana Discussion PayPal tax report

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?

I havent talked to tax advisor but we are already gearing up for this. Asking prices on ebay need to go up, again, to cover paying taxes on it. We are keeping every receipt we can think of to create a cost basis, but good look to the tax man to figure out what we paid on an item we bought years ago or us for that matter.

Just one more reason why I won't sell on Ebay,or use Paypal.

Agree a 100% I'm done with all of it.

We stopped selling on feebay and just about to drop PayPal too.

I also refuse to use either of these two. Just too much hassle.

I cant really afford to give up on ebay, too many good buyers on there. I can up the costs of my items though to compensate for all their fees and now tax implications.

Ebay collects sales tax from the buyer of an item on their platform.
Ebay then is responsible for submitting state tax as they base it on the purchaser's ship to address and have collected it.

So when did Ebay start 1099 the seller? 2022 or 2021?

Found this March 2021 online document regarding Ebay subject:

Starting next year, the federal threshold for issuing the 1099-K will drop to $600 with no minimum transaction level, due to a provision in the recently enacted American Rescue Plan Act. (Some states already have lower minimums.)

This means that in early 2023, you could receive a 1099-K for online sales you make in 2022. And this would be the case whether you’re an occasional seller or are operating as a business, as long as you sold more than $600 worth on a single platform. It doesn’t necessarily mean you’d be taxed on the money, but you would need to account for it on your tax return.

One aspect I don't understand is that ebay is charging/collecting sales tax for purchases made by US buyers from Canadian sellers??

I understood the sales tax, the 1099K is for federal income tax.
looks like amount over $600 a year gets a form.
You need receipts for cost and sales.
Looks like it doesn't matter if it's " Friends" or not.

What the hell?? So eBay is charging the buyer tax for the government (which I knew) and now the seller is getting taxed on the same money over $600 for the same sale?????

If I buy an item for over $600 at the store, yes I pay sales tax, but the store doesn’t pay tax on their incoming money !!!

And they’re going to tax friends and family money on PayPal ??? WTH.

Does anyone know if the seller is taxed over $600 on other platforms such as google pay or Venmo ??

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:

https://newsroom.paypal-corp.com/20...ing-Requirements-Your-Questions-Answered

Of course they do, every business is taxed on income coming in, that is where receipts, expenses, etc. Come into play to lower that tax.

Only if you were to get audited