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2022 law change - PayPal transactions over $600 (1 Viewer)

Himewad said:
I think it’s more that he doesn’t want a 3rd party making those judgement calls about anything he says, tweets or posts. There are tons of examples of perfectly innocent things that are taken completely out of context (or outright misquoted) where people take offense or are outraged. People need to toughen up and not be such a delicate little flower instead of attacking someone whose intentions were not meant to offend anyone.
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It’s ok to be mildly offended and brush it off. The fact that the media blows up so many trivial things kinda dilutes and masks situations where saying something is really warranted. I’m a tough guy proponent myself, but it’s not realistic to push that expectation on everyone, I’d rather that “they” would see that constantly crying wolf - when it’s not a wolf, it’s the neighbors dog and all you have to do is say “go home” - it deadens peoples responses and dulls their responses when there really is a wolf. So for me it’s more “grow up” and not “toughen up”.
 
Poker Zombie said:
If your life is such that "the promotion of hate, violence, racial or other forms of intolerance that is discriminatory" is so important to you that you may need to stop using PayPal, I can assure you that we are neither Friends nor family.
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As Interim VP of Fairness at PayPal, I deem this comment discriminatory intolerance.

Your account has been closed. That'll be $2,500.

Poker Zombie said:
Some people do need to toughen up, but some old geezers need to bend or be broken.
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... aaaaaand age discrimination, to boot. Another $2,500.
 
Himewad said:
Just remember ... 80,000 more armed IRS agents are gonna be out there. They mean business.
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A lot of those 80,000 people will be hired over 10 years and a lot of them will be picking up phones. Something like 40% of calls went unanswered last year. The hold times were obnoxious.
 
aggie said:
As Interim VP of Fairness at PayPal, I deem this comment discriminatory intolerance.

Your account has been closed. That'll be $2,500.


... aaaaaand age discrimination, to boot. Another $2,500.
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Docking my PayPal account would be in violation of PayPal's own policy of putting an account in negative balance.

Therefore, you also now owe PayPal $2500. It must suck to be the Interim VP. :cool
 
Poker Zombie said:
Correct.

This link: https://www.paypal.com/us/webapps/mpp/ua/useragreement-full#restricted-activities covers all the things that could get you fined.

So don't violate the law. Check.

The rest is basically "dont be a dick" that costs us money...

Don't use PP to sell copyright protected works, counterfeit works, or, well... basically anything where PayPal has to investigate, and finds you have done something so wrong that PP has to refund the buyer.

Don't double-dip. i.e. If you get a refund from PayPal, you do not get to also get a refund from your credit card company for the same purchase, or get to request cash back from the seller through other channels.

Don't use PayPal to make a "purchase" from a buddy using your credit card, then get the refund, thus tricking the bank into giving you a cash advance.

People that were all worked up about being fined for spreading misinformation can return to setting their own pants on fire.
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Good freaking grief. Never cease to amaze.
 
Poker Zombie said:
I have greater concerns of being hit on the head by a meteorite than I do of being fined by PayPal for "the promotion of hate, violence, racial or other forms of intolerance that is discriminatory".

...and it's not even close.

If your life is such that "the promotion of hate, violence, racial or other forms of intolerance that is discriminatory" is so important to you that you may need to stop using PayPal, I can assure you that we are neither Friends nor family.
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Coming from the beacon of tolerance. Beyond laughable.
 
So I buy four racks of chips for $2000. One transaction, no breakdown, no documentation because it happened years ago. I sell two racks for $700 each, and another for $400. I still have one rack left. Did I make money? Lose money? Is the IRS just going to trust me if I say the last rack is worth $200? (meaning that I sold $1800 worth of chips for $1800) If the last rack is worth $1000, have I realized any of my $800 gain yet?
 
Were these hypothetical racks identical, at least in value, so each is worth $500? If so, and you sold the racks during the same tax year, then you’d have a net profit of $300 ($200 per rack sold at $700, -$100 for the one sold for $400).

You don’t realize gains until you sell an asset, so it doesn’t matter what the value of the last unsold rack is.
 
TheOffalo said:
Were these hypothetical racks identical, at least in value, so each is worth $500? If so, and you sold the racks during the same tax year, then you’d have a net profit of $300 ($200 per rack sold at $700, -$100 for the one sold for $400).

You don’t realize gains until you sell an asset, so it doesn’t matter what the value of the last unsold rack is.
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Different racks. Meant to say that. The IRS will have to take my word on what the first three were worth because the purchase transaction did not break it down?
 
Hey let’s make problems bigger instead of trying to solve them!! The IRS is not some Overlord, it’s just people doing their jobs. Just keep track of what you are doing and have reasonable reasons for what you did. They know your not a rocket scientist and are maybe doing the best you can to keep up. But one things for sure, do shady stuff or attempt to unreasonably justify your actions and they will not cut you any slack anymore at all.
 
ekricket said:
Hey let’s make problems bigger instead of trying to solve them!! The IRS is not some Overlord, it’s just people doing their jobs. Just keep track of what you are doing and have reasonable reasons for what you did. They know your not a rocket scientist and are maybe doing the best you can to keep up. But one things for sure, do shady stuff or attempt to unreasonably justify your actions and they will not cut you any slack anymore at all.
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I hear you. Those that paid let's say an average of $1/chip on some PCA's years ago during the Chip Room sale that now sell those same chips for $5 apiece are making a huge profilt. That's income and by the letter of the law is taxable.

Now for example, I sold my Key West limit set to a member here. I acquired that set in 3 separate transactions and paid sales tax and shipping fees to the vendor each time. My "at cost" price was just over $1100 all things considered, including shipping to the buyer of the set. I sold the set for an even $1100. I can probably pull up the three separate invoices from Key West on PayPal. But for someone like me who's an average Joe (no pun intended) that may have done this with 3 or 4 other sets this year that works and frankly doesn't have the time to locate and print out tens of Paypal invoices. That's a lot of damn work to prove I'm not making money on any of those sales, especially when the set was acquired rack by rack in person to person sales. How can I prove that those chips were purchased at that price if there's no memo as to what the transaction was for? It's needless work.

My sales policy moving forward if I do sell an entire set is cash or check only. Chips get sent out or delivered when I can confirm clearance of funds. Not because I'm trying to dodge the tax man. But because I frankly don't have the time to go through the rigamarole of locating each and every Paypal invoice of chips that I bought that I sold later on to prove I'm not making income on the deal. We're talking at least 10 transactions going back to 2019 if I sell two more sets, for example.

And that's if I can successfully identify each transaction, which is absolutely not a given. The best thing to do is to start an Excel spreadsheet with every incoming and outgoing transaction pertaining to this hobby. Which brings me to my original point. How many average Joe's have time for this? I do this for fun and enjoy my spoils for fun. I'm not here running a business and trying to make money off of others here. The whole thing is ridiculous.
 
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It is going to be fascinating to see just how much or how little documentation these pop up tax return places will need or require when the average Jane Schmoe turns up with eBay and PayPal 1099s for $1258.47 and $749.03.
 
Just for confirmation - the new $600 limit for reporting applies to goods and services payments, not friends and family, correct?

That’s how I read the new regulations on several sites.
 
bergs said:
Just for confirmation - the new $600 limit for reporting applies to goods and services payments, not friends and family, correct?

That’s how I read the new regulations on several sites.
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Correct. But from what I've been reading, Paypal may still send a 1099 if some F+F payments are deemed to have curtailed that reporting limit.

I've used F+F for everything incoming and outgoing, but I'm expecting the worst just in case. At the end of the day, not life-changing money if I need to cough up some taxes, but the question becomes relative to the amount owed, is it worth my time to fight it to prove that I'm not coming out ahead relative to my initial costs on what I sold.
 
bergs said:
Just for confirmation - the new $600 limit for reporting applies to goods and services payments, not friends and family, correct?

That’s how I read the new regulations on several sites.
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That is the way it is supposed to work. Does anyone happen to know which form your cost of goods and the actual sale amount gets put on and where? I’m thinking it would be schedule one but I am uncertain where the cost of goods part would go to offset the 1099k payment, if there’s a CPA out there that’s looked at it, would love some insight.
 
How many PCF'ers are going to get audited because of chip transactions. I'm putting the over/under at 0.5
 
Can we quit talking about fight club?

Does any other country in the world already do something like this?
 
Poker Zombie said:
How many PCF'ers are going to get audited because of chip transactions. I'm putting the over/under at 0.5
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This will probably end up correct more often than not, but the chance is not zero. Those that just came into this hobby that previously did not have much Paypal activity, that now all of a sudden bought tens of thousands of dollars worth of stuff off of others from this site, then sold it should especially be careful, IMO, especially if G+S was used in any capacity. It looks suspicious for account activity to go from zero or a couple of hundred dollars a year to 4 or 5 figures of inbound payments now suddenly being received.

I'll shut up now :)
 
Every time I see this thread pop up, I am instantly reminded of the old Thomas Sowell quote, “I have never understood why it is “greed” to want to keep the money you have earned but not greed to want to take somebody else’s money.”

I’d be willing to risk a sum of money those screaming from atop their trusty steed demanding others “pay their fair share” are doing whatever possible to avoid paying a single extra cent than what they absolutely have to. It’s much easier to cast virtue signals than to put your money where your mouth (fingers) is.
 
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"The survey, which polled 757 people whose 2021 sales were under $20,000, found that 69 percent of respondents now intended to sell less or stop selling. And 54 percent said they would likely dispose of preowned goods instead of selling them, potentially dealing blows to both the online market and reuse-based sustainability efforts."

Build back better! It doesn't matter that these people misunderstand the law. (There is no way people are reselling their kids used clothing for more than what they paid for it. They owe zero taxes on those transactions.) What matters is the effect. People see tax forms and having to provide social security numbers to marketplaces when they go over $600, and they are just going to say WTF.
 
FDLmold said:
"The survey, which polled 757 people whose 2021 sales were under $20,000, found that 69 percent of respondents now intended to sell less or stop selling. And 54 percent said they would likely dispose of preowned goods instead of selling them, potentially dealing blows to both the online market and reuse-based sustainability efforts."

Build back better! It doesn't matter that these people misunderstand the law. (There is no way people are reselling their kids used clothing for more than what they paid for it. They owe zero taxes on those transactions.) What matters is the effect. People see tax forms and having to provide social security numbers to marketplaces when they go over $600, and they are just going to say WTF.
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But…but…they need to pay their fair share!!!

These selfish people trying to do something to clothe their own kids when they should be focused on clothing the kids of those that don’t want to do anything but rely on everyone else to clothe their kids. Makes perfect sense.
 
And so it begins...

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The IRS notice was merely that if you get a 1099K, you need to account for it on your taxes. Paypal is doing it for friend/family transactions the last I checked, so be ready to account for those.
 
HaRDHouSeiNC said:
At Least eBay sent out a message to lobby to reverse the dumbass law
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They know they are going to lose sellers, and thus money, because of it. I'm sure Etsy, Poshmark, and other online marketplaces lobbied too. They're going to get beat up in 2023 as well.

$600 was a good threshhold when Biden was first a senator (1970s), now it's just silly. If it's that low, just make it $20, there won't be much difference lol. If somebody wants to argue that $20,000 was too high for reporting, I can buy that. Congress *may* change the threshhold before year end, but I doubt it.
 
FDLmold said:
They know they are going to lose sellers, and thus money, because of it. I'm sure Etsy, Poshmark, and other online marketplaces lobbied too. They're going to get beat up in 2023 as well.

$600 was a good threshhold when Biden was first a senator (1970s), now it's just silly. If it's that low, just make it $20, there won't be much difference lol. If somebody wants to argue that $20,000 was too high for reporting, I can buy that. Congress *may* change the threshhold before year end, but I doubt it.
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Yah I mean congress they really follow rules and all when they are a 30 year senator and trading extremely lucky picks every time.
Then have 50k in write offs.
Funny how they never have to worry
20k in this economy and inflationary spiral id say is low
 

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