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2022 law change - PayPal transactions over $600 (2 Viewers)

FDLmold said:
I got my "over $600 in transactions" email a couple weeks ago. I've done maybe one or two goods/services this year. I'm going to be done with paypal very soon. People can pay me in amazon gift certificates!
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I’m open to start up trying Apple Pay
And lean more toward CashApp
I can’t use Zelle here
 
HaRDHouSeiNC said:
Actually I can
I just found my bank supports Zelle
I can use the bank app to do Zelle
I’m cool with that
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I’ve used Zelle to do several transactions with other chippers, it’s definitely my preferred method to transfer funds.
No 1099s and your still aloud to have an opinion without worrying about a company STEALING your money because they don’t like what you say.
 
Lil Tuna said:
I’ve used Zelle to do several transactions with other chippers, it’s definitely my preferred method to transfer funds.
No 1099s and your still aloud to have an opinion without worrying about a company STEALING your money because they don’t like what you say.
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I’ve got two words for you, “It was just a mistake.” PP didn’t mean for all that language to be typed up in that exact verbiage. They didn’t mean to send that exact verbiage out, and it was only coincidence they retracted it only after the fierce mutiny that came from it. Big tech always has YOUR best intentions at “top of mind.” Trust them. It’s science.
 
DMack said:
I’ve got two words for you, “It was just a mistake.” PP didn’t mean for all that language to be typed up in that exact verbiage. They didn’t mean to send that exact verbiage out, and it was only coincidence they retracted it only after the fierce mutiny that came from it. Big tech always has YOUR best intentions at “top of mind.” Trust them. It’s science.
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I trust them just like hemorrhoids. ;) :ROFL: :ROFLMAO:
 
PP got back to me and told me that I received the email because I received more than $600 in G&S. I said bullshit, so they told me to run a report of my account, which I did. Then they said that every "Mobile payment" was a G&S while every "general payment" was not.

I attempted to argue the point that just because somebody pays from a phone doesn't mean it's a goods and services payment. But I can tell that I was dealing with a lower life form, and just stopped.

So either this guy was grossly misinformed, or PayPal is really trying to screw me here...
 
BearMetal said:
PP got back to me and told me that I received the email because I received more than $600 in G&S. I said bullshit, so they told me to run a report of my account, which I did. Then they said that every "Mobile payment" was a G&S while every "general payment" was not.

I attempted to argue the point that just because somebody pays from a phone doesn't mean it's a goods and services payment. But I can tell that I was dealing with a lower life form, and just stopped.

So either this guy was grossly misinformed, or PayPal is really trying to screw me here...
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Yah how do you dispute a BS 1099
 
RainmanTrail said:
I started an LLC last year in anticipation of all this mess. If they want to try and treat me like a business because I resold a camera on eBay, then I'm going to start writing off all of my business expenses.
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Smart. I thought about that. I may do it in 2023 depending on how 2022 shakes out. Gains and losses and expenses are much more favorable on a schedule C than a schedule D.
 
I hope folks don't actually follow all the tax advice offered lately in this thread. For the most part, it is at least misguided if not completely wrong.

People with serious amounts of money flowing through their PayPal accounts should be getting professional advice.

The rest of us can get along just fine so long as we don't do something truly stupid.

And if you really did make profits on your on-line sales and have evaded taxation for years - - - well now it is time to pay your fair share. Hard to feel sorry for the outraged tax cheats crying about paying what they owe.

I know, I know. Losers and suckers pay their taxes. The genius doesn't pay anything and laughs at the honest people -=- DrStrange
 
DrStrange said:
And if you really did make profits on your on-line sales and have evaded taxation for years - - - well now it is time to pay your fair share.
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Key word here is profits, which is defined as Business Revenue less Expenses. To anyone wondering if they should report their Expenses against any 1099s or not, don’t be bullied into believing that’s tax evasion.
 
DrStrange said:
And if you really did make profits on your on-line sales and have evaded taxation for years
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That's a problem. It's a hobby. I don't keep detailed records of every trading card, board game, poker chip, and lego set I buy or get as a gift. Basically nobody does. Is the IRS expectation that I have business level documentation for my hobbies? That's some bullshit, it's not going to happen. And my "best guess" on 95%+ of my sales is that I made $0 or less.
 
DoubleEagle said:
You will likely have the IRS determine you are a hobby business, disqualifying your expense deductions.

https://www.irs.gov/newsroom/heres-...tween-a-hobby-and-a-business-for-tax-purposes
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It's important to note that deductions for cost-of-goods-sold is still allowed even for a hobby. Expenses like, say, the cost of appraising and insuring your collection cannot be deducted for a hobby (whereas they could be deducted if selling chips was a business for you instead of a hobby). But if you paid $100 for a rack and then sold it for $300 you can deduct the $100 cost-of-goods-sold and report a net hobby income of only $200 instead of the full $300.

Note though that you can't use hobby losses to offset other income. If you bought a rack for $500 and sold it for $400 you don't get to deduct your $100 losses from your income from your day job. You can do that with business income (to a point) but not with hobby income.

I am not a tax professional and this is not tax advice; I'm only reporting what I've read at sites such as this one: https://rcmycpa.com/business-or-hobby-9-questions-to-clarify-which-one-you-operate-2/ and this one: https://bradfordtaxinstitute.com/Content/Loophole-to-Deduct-Hobby-Expenses-after-Tax-Reform.aspx
 
DrStrange said:
well now it is time to pay what the current tax rules require your fair share. Hard to feel sorry for the outraged tax cheats crying about paying what they owe.
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FYP

Can we please drop the use of the word “fair”. It’s introduction in the discussion makes subsequent rational discourse virtually impossible.
 
DrStrange said:
I hope folks don't actually follow all the tax advice offered lately in this thread. For the most part, it is at least misguided if not completely wrong.

People with serious amounts of money flowing through their PayPal accounts should be getting professional advice.

The rest of us can get along just fine so long as we don't do something truly stupid.

And if you really did make profits on your on-line sales and have evaded taxation for years - - - well now it is time to pay your fair share. Hard to feel sorry for the outraged tax cheats crying about paying what they owe.

I know, I know. Losers and suckers pay their taxes. The genius doesn't pay anything and laughs at the honest people -=- DrStrange
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I couldn’t agree with you more @DrStrange. A little background…….
I’ve been receiving a paycheck that’s had taxes being taken out of it since I was 13 years old. I have filed on time every year since and squared up whatever it is I owe each and every one of those years. I’ll be 51 next month.

I’ve only ever used PP to do chip transactions with other chippers, mostly payments to others because I rarely ever sell. When I have sold, I can assure you it was for little or NO PROFIT.

I worked a total of 64 hours this week cause I’m one of those guys who jumps at the opportunity to put some extra cash in my pocket when I get the chance. And yeah, more taxes I’ll get to pay for the opportunity to fight all this 40 year high inflation that’s taken hold this last year with a little extra cash in my paycheck.

When I read or hear someone use the words “tax cheat” to describe someone that’s most likely just a regular working stiff trying to do a little better for themselves, it makes me wonder what they think about Rich Elitists who we know don’t pay much if any taxes? And when they do give away or donate their riches, it’s always to organizations or individuals who also don’t pay their “fair share” or their taxes.

In my opinion, when I hear the words “tax cheat,”I can’t help to think more about the type of folks below rather than someone who made a few bucks on something they sold on eBay and received PP funds from.

In your opinion, do any of these pictures make you think of “tax cheats?” Maybe insider traders? Would PP ever attempt to STEAL these folks funds from their accounts ( if they had accounts) for voicing an opinion PP didn’t agree with?

Just one working stiffs thoughts and opinion to another @DrStrange. It seems to me there are different sets of rules for thee and then there are TAXES to be paid by you and me.
 
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DrStrange said:
Respectfully sugest that folks take the politics to the political section. Can't help but think this thread is barely hanging on . . . . by a thread :D .

DrStrange
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I couldn't agree more. The posts containing politics have either been edited or removed. (and the posts quoting them)

I'm not surprised by the repeat offenders that I've kindly asked to keep the politics in the Politics section via PM in the past. I don't want to hear "I got a time out for no reason" stuff either. Keep it the politics in the Politics section please.
 
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Himewad said:
I’m just saying, if someone spends a few thousand dollars on poker chips, and pays G&S, this transaction will now be reported. And the purchaser is (already) supposed to report the value of the chips and pay use (I.e sales) tax. I don’t run a side business, or a small business, and spend hardly anything on chips, so I’m not trying to get away with anything. I’m just telling people to be aware of the new rules so it doesn’t bite you in the ass when you file next year’s tax return.
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Can our chip purcahses be reported as losses then? :ROFL: :ROFLMAO:
 
Oh good, I can return to the thread now. I've thought about it, and there will be four types of transactions I need to report next year.

Gifts given to me that I sold.
Gifts given to my children that I sold.
Things I bought that I sold and made some profit.
Things I bought that I sold and lost money.

I have almost zero documentation for any of it. Cuz they're fuckin hobbies. I will make a best guess and hope one of the newly hired 80,000 armed IRS agents doesn't come audit knocking.
 

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