Author |
Message |
SGKent Samba Member
Joined: October 30, 2007 Posts: 41031 Location: Citrus Heights CA (Near Sacramento)
|
Posted: Tue Dec 06, 2022 9:54 pm Post subject: Re: Anything About Paypal |
|
|
Abs - it is all the times you flamed people for being conservatives in their own way, shamed them for being concerned things like this could happen, and then pushed the idea that no Dem could ever pass a law where PP and Venmo etc transactions become income. The burden was on the individual to report if they made income. Well now it is 2 years later and anything over $600 this year total on PP or Venmo gets a 1099K. Then the burden becomes "prove it isn't all profit." You have receipt for everything you sold this year? Have proper documentation what it cost to ship to them? Can you prove what they paid in sales taxes thru PP or Venmo that is in that 1099K? Did you also pay taxes on your side jobs? There are 87,000 new IRS agents who need something to do with their time. _________________ “Most people don’t know what they’re doing, and a lot of them are really good at it.” - George Carlin |
|
Back to top |
|
|
Abscate Samba Member
Joined: October 05, 2014 Posts: 22568 Location: NYC/Upstate/ROW
|
Posted: Wed Dec 07, 2022 2:34 am Post subject: Re: Anything About Paypal |
|
|
The burden is always on the individual to pay the taxes they owe. Yes, I can easily receipt everything I bought and sold. Since I do this on the professional side , it easy to do it for personal stuff too.
You don’t have to prove it other than filing it correctly. I think you have been Around long enough to know that audits are triggered by certain thresholds which won’t be met here.
The 87,000 “ new “ agents will be working hard trying to address the backlog made by the gutting of the agency over the last decade. The usual IRS bogey-straw man won’t be making an appearance in real life.
Turbo tax has a pretty good web info on how to handle 1099K income, offset cost of goods sold, and handle this issue, but it seems like this thread is more about ranting about the IRS than the real issue. Why is it the same ones who rant about collections also rant about deficits? _________________ .ssS! |
|
Back to top |
|
|
SGKent Samba Member
Joined: October 30, 2007 Posts: 41031 Location: Citrus Heights CA (Near Sacramento)
|
Posted: Wed Dec 14, 2022 3:00 pm Post subject: Re: Anything About Paypal |
|
|
Abs, I certainly understand the desire to collect taxes on those making a living off cash sales as a business. My complaint is that the law is discriminatory. Someone who collected a house full of things because they have a good income not only had to pay taxes when they earned the money to buy things, sales tax when they bought it, and taxes now when they get rid of it. I have about $5K worth of rare NOS VW parts for your bus. Know where they will end up now because I don't want to sort thru boxes for 12 years worth receipts for parts, and 50 years worth of specialty tools? In the landfill. And no, I will not donate them to a mooch who will "take them off my hands." My collectibles from childhood, landfill. I know someone will want the 50's train sets but I am so done with this drip drip drip attack on life. It has NOTHING to do with "deficits." If you cared about those you would not have supported the trillions in spending. The claim about not caring about "deficits" is simply a play on buzz words.
Also 1099K did not come up in any searches so get off your high horse. _________________ “Most people don’t know what they’re doing, and a lot of them are really good at it.” - George Carlin |
|
Back to top |
|
|
Glenn Mr. 010
Joined: December 25, 2001 Posts: 76760 Location: Sneaking up behind you
|
Posted: Wed Dec 14, 2022 3:06 pm Post subject: Re: Anything About Paypal |
|
|
SGKent wrote: |
Someone who collected a house full of things because they have a good income not only had to pay taxes when they earned the money to buy things, sales tax when they bought it, and taxes now when they get rid of it. |
That happens when you buy a car... except its on the buyer. You pay sales tax on the purchase of a used car that the original owner paid taxes on.
You should only be paying taxes on the profit, so if you buy a TV for $400 and sell it for $200 then you pay no taxes... as long as you have receipts if you get audited. _________________ Glenn
74 Beetle Specs | 74 Beetle Restoration | 2180cc Engine
"You may not get what you pay for, but you always pay for what you get"
Member #1009
#BlueSquare |
|
Back to top |
|
|
Abscate Samba Member
Joined: October 05, 2014 Posts: 22568 Location: NYC/Upstate/ROW
|
Posted: Wed Dec 14, 2022 3:40 pm Post subject: Re: Anything About Paypal |
|
|
Quote: |
My complaint is that the law is discriminatory |
The law applies exactly as it is written. In most states, if you sell stuff, you owe tax. Not paying it makes you a tax cheat. ‘Everyone does it, or not “ isn’t a defense “
If you want to cheat and avoid retail tax, accept only cash. _________________ .ssS! |
|
Back to top |
|
|
Xevin Samba Member
Joined: January 08, 2014 Posts: 7599
|
Posted: Wed Dec 14, 2022 4:00 pm Post subject: Re: Anything About Paypal |
|
|
Shouldn’t the conversation with Glenn, Abscate, and SGKent continue in the 1099K thread since it applies to Venmo and other payment services? This doesn’t appear to be exclusive to PayPal. _________________ Keep on Busin'
67rustavenger wrote: |
GFY's Xevin and VW_Jimbo! |
Clatter wrote: |
Damn that Xevin... |
skills@eurocarsplus wrote: |
I respect Xevin and he's a turd |
SGKent wrote: |
My God! Xevin and I 100% agree |
|
|
Back to top |
|
|
EverettB Administrator
Joined: April 11, 2000 Posts: 69733 Location: Phoenix Metro
|
|
Back to top |
|
|
SGKent Samba Member
Joined: October 30, 2007 Posts: 41031 Location: Citrus Heights CA (Near Sacramento)
|
Posted: Fri Dec 23, 2022 8:04 pm Post subject: Re: Anything About Paypal |
|
|
the good news this week is that the IRS decided to postpone this until everyone has a chance to look at it. They finally realized that the accounting issues are near impossible to solve, especially when people start selling personal items they have owned for decades, and have nothing to show what they paid Grandma for it. _________________ “Most people don’t know what they’re doing, and a lot of them are really good at it.” - George Carlin |
|
Back to top |
|
|
TDCTDI Samba Advocatus Diaboli
Joined: August 31, 2013 Posts: 12815 Location: North Carolina
|
Posted: Sat Dec 24, 2022 4:35 pm Post subject: Re: Anything About Paypal |
|
|
Link
A few takeaways… this was part of the “American Rescue Act”… ”we come in peace, shoot to kill”. the $600 threshold was for the year, not per transaction, it was reduced down from up to 200 transactions & up to $20,000. Just because it has been delayed, doesn’t mean that it isn’t being tracked, & you will be responsible for claiming it or keeping records to prove that it wasn’t income (gift from relative) when you file taxes. _________________ Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
|
Back to top |
|
|
EverettB Administrator
Joined: April 11, 2000 Posts: 69733 Location: Phoenix Metro
|
|
Back to top |
|
|
outcaststudios Samba Member
Joined: February 09, 2015 Posts: 1728 Location: Maine
|
Posted: Wed Jan 11, 2023 6:21 pm Post subject: Re: Paypal / Online Payment systems |
|
|
the thing i cant deal with about paypal:
-they're owned by ebay.
-they pose as the arbiter in situations where there is a huge conflict of interest.
-they are easily misled by buyers and will always side with the buyer and not the seller. _________________ '88Doka JX td
'69 westy
(rip)couple bugs
(rip)three type III"s
(rip) '81 vanagon
a bunch of french stuff,and 9 motorcycles.
https://www.thesamba.com/vw/classifieds/detail.php?id=2573791 |
|
Back to top |
|
|
TDCTDI Samba Advocatus Diaboli
Joined: August 31, 2013 Posts: 12815 Location: North Carolina
|
Posted: Thu Feb 23, 2023 8:10 am Post subject: Re: Paypal / Online Payment systems |
|
|
Link
_________________ Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
|
Back to top |
|
|
skills@eurocarsplus Samba Peckerhead
Joined: January 01, 2007 Posts: 16802 Location: sticksville, ct.
|
Posted: Tue Nov 28, 2023 7:39 pm Post subject: Re: Paypal / Online Payment systems |
|
|
worth a watch....
Link
_________________
gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
Jake Raby wrote: |
Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
Brian wrote: |
Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
|
|
Back to top |
|
|
raygreenwood Samba Member
Joined: November 24, 2008 Posts: 21474 Location: Oklahoma City
|
Posted: Tue Nov 28, 2023 8:22 pm Post subject: Re: Paypal / Online Payment systems |
|
|
skills@eurocarsplus wrote: |
worth a watch....
Link
|
Nice and worth watching. I have already been pinged by Paypal because someone paid me a refund without proper documentation.
Because of this, other than buying something, I sell nothing and take no payments on paypal or anywhere else. I don't care what they say....they have already been tracking.
Ray |
|
Back to top |
|
|
Tram Samba Socialist
Joined: May 02, 2003 Posts: 22697 Location: Still Feelin' the Bern- Once you've felt it you can't un- feel it.
|
Posted: Wed Nov 29, 2023 12:51 am Post subject: Re: Paypal / Online Payment systems |
|
|
The 1099-K reporting requirement was signed into law in 2008, by GWB. So actually, the guy in that clip got it all backwards. Before GWB saddled you with it, the 1099-K did not exist and there was no reporting of payment service earnings... AT ALL.
I also don't get how this makes filing taxes more expensive. Just keep your records and file Schedule C. You're still entitled to take all your deductions. The fact that Ray's "income" was actually a refund should be easy to prove.
Incidentally- the little tidbit that everyone is leaving out is the FACT that you have to exceed not one but TWO thresholds with the original reporting requirements... you need to exceed $20K in revenue AND exceed 200 transactions before you trigger a 1099K- If you sell $100K on 180 transactions- you're not supposed to get a 1099K. If you take in 10 million dollars on 10 transactions... ditto.
Don't get me wrong... I don't like the $600 thing either. On the other hand, I don't have the required funds to buy something orange to make my taxes go away, so I do the next best thing and keep records. Whether I get a 1099K, or 5 1099Ks makes no difference and takes me maybe a few more minutes at tax time. I've been audited way more than once and I am just polite and timely in my responses, and it all worked out fine. Once I did make a goof and I made an offer in kind to pay 1/3- and it was granted.
Your mileage may vary, but unless you go right in with attitude, dealing with the IRS isn't the huge headache people make it out to be. _________________ Немає виправдання для війни! Я з Україною.
Bryan67 wrote: |
Just my hands. And a little lube. No tools. |
To best contact me, please use the EMAIL function in my profile |
|
Back to top |
|
|
skills@eurocarsplus Samba Peckerhead
Joined: January 01, 2007 Posts: 16802 Location: sticksville, ct.
|
Posted: Wed Nov 29, 2023 6:34 am Post subject: Re: Paypal / Online Payment systems |
|
|
Tram wrote: |
The 1099-K reporting requirement was signed into law in 2008, by GWB. |
not even close
https://en.wikipedia.org/wiki/Form_1099-K#:~:text=...sessments. _________________
gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
Jake Raby wrote: |
Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
Brian wrote: |
Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
|
|
Back to top |
|
|
raygreenwood Samba Member
Joined: November 24, 2008 Posts: 21474 Location: Oklahoma City
|
Posted: Wed Nov 29, 2023 7:34 am Post subject: Re: Paypal / Online Payment systems |
|
|
Tram wrote: |
The 1099-K reporting requirement was signed into law in 2008, by GWB. So actually, the guy in that clip got it all backwards. Before GWB saddled you with it, the 1099-K did not exist and there was no reporting of payment service earnings... AT ALL.
I also don't get how this makes filing taxes more expensive. Just keep your records and file Schedule C. You're still entitled to take all your deductions. The fact that Ray's "income" was actually a refund should be easy to prove.
Incidentally- the little tidbit that everyone is leaving out is the FACT that you have to exceed not one but TWO thresholds with the original reporting requirements... you need to exceed $20K in revenue AND exceed 200 transactions before you trigger a 1099K- If you sell $100K on 180 transactions- you're not supposed to get a 1099K. If you take in 10 million dollars on 10 transactions... ditto.
Don't get me wrong... I don't like the $600 thing either. On the other hand, I don't have the required funds to buy something orange to make my taxes go away, so I do the next best thing and keep records. Whether I get a 1099K, or 5 1099Ks makes no difference and takes me maybe a few more minutes at tax time. I've been audited way more than once and I am just polite and timely in my responses, and it all worked out fine. Once I did make a goof and I made an offer in kind to pay 1/3- and it was granted.
Your mileage may vary, but unless you go right in with attitude, dealing with the IRS isn't the huge headache people make it out to be. |
Yes....good point. But while it's easy to "prove" that a deposit was not a sale.....getting PayPal to actually change the status and fee associated with it is not easy at all.
Before this process with the $600 limit got slowed/rescinded....PayPal was in a "don't care" take no prisoners mindset.
Ray |
|
Back to top |
|
|
EverettB Administrator
Joined: April 11, 2000 Posts: 69733 Location: Phoenix Metro
|
Posted: Wed Nov 29, 2023 8:13 am Post subject: Re: Paypal / Online Payment systems |
|
|
From that link:
Quote: |
In the Housing and Economic Recovery Act of 2008, a new requirement was laid out for banks and credit card merchants to report payments to the IRS. This requirement took effect in 2011, and Form 1099-K was first issued in 2012. |
Bolding mine
Video comments:
1. Wow, he really stretched that out and repeated himself to make it 10+ minutes.
2. I'm not sure the IRS uses new trainees to do the "easy" audits before unleashing them on "higher value targets". I'm guessing that's not how it works.
3. Will the $600 level increase work for the IRS?
Probably but I doubt it's as much as he thinks, I'm sure it's mostly automated and computerized to catch people based on what's being reported from both ends.
I 100% agree that targeting people with a $600 level is stupid and a waste or time and resources, whatever those may be.
Similar topic?
They need to rescind eBay and other sources charging sales tax on used purchases from private parties.
This is BS too and double/triple/etc taxation _________________ How to Post Photos
Everett Barnes - [email protected] | My wanted ads
"Water is the only drink for a wise man" | "Communication prevents complaints"
Stop dead photo links! Post your photos to The Samba Gallery! |
|
Back to top |
|
|
Tram Samba Socialist
Joined: May 02, 2003 Posts: 22697 Location: Still Feelin' the Bern- Once you've felt it you can't un- feel it.
|
Posted: Wed Nov 29, 2023 11:12 am Post subject: Re: Paypal / Online Payment systems |
|
|
raygreenwood wrote: |
Tram wrote: |
The 1099-K reporting requirement was signed into law in 2008, by GWB. So actually, the guy in that clip got it all backwards. Before GWB saddled you with it, the 1099-K did not exist and there was no reporting of payment service earnings... AT ALL.
I also don't get how this makes filing taxes more expensive. Just keep your records and file Schedule C. You're still entitled to take all your deductions. The fact that Ray's "income" was actually a refund should be easy to prove.
Incidentally- the little tidbit that everyone is leaving out is the FACT that you have to exceed not one but TWO thresholds with the original reporting requirements... you need to exceed $20K in revenue AND exceed 200 transactions before you trigger a 1099K- If you sell $100K on 180 transactions- you're not supposed to get a 1099K. If you take in 10 million dollars on 10 transactions... ditto.
Don't get me wrong... I don't like the $600 thing either. On the other hand, I don't have the required funds to buy something orange to make my taxes go away, so I do the next best thing and keep records. Whether I get a 1099K, or 5 1099Ks makes no difference and takes me maybe a few more minutes at tax time. I've been audited way more than once and I am just polite and timely in my responses, and it all worked out fine. Once I did make a goof and I made an offer in kind to pay 1/3- and it was granted.
Your mileage may vary, but unless you go right in with attitude, dealing with the IRS isn't the huge headache people make it out to be. |
Yes....good point. But while it's easy to "prove" that a deposit was not a sale.....getting PayPal to actually change the status and fee associated with it is not easy at all.
Before this process with the $600 limit got slowed/rescinded....PayPal was in a "don't care" take no prisoners mindset.
Ray |
Yeah, but that's PayPal being PayPal. It has nothing to do with the law, really. One of the beauties of American capitalism is that big companies that rely on you to generate income for them by using their services will be the first to sell you out to the government or other entities to keep themselves appearing clean. ALL of them do it. Not condoning it here- just pointing out that it isn't the law that caused the "Pal" to do this. They went above and beyond on their own, because they'd rather have YOUR ass in a sling than theirs. _________________ Немає виправдання для війни! Я з Україною.
Bryan67 wrote: |
Just my hands. And a little lube. No tools. |
To best contact me, please use the EMAIL function in my profile |
|
Back to top |
|
|
Tram Samba Socialist
Joined: May 02, 2003 Posts: 22697 Location: Still Feelin' the Bern- Once you've felt it you can't un- feel it.
|
Posted: Wed Nov 29, 2023 11:29 am Post subject: Re: Paypal / Online Payment systems |
|
|
EverettB wrote: |
From that link:
Quote: |
In the Housing and Economic Recovery Act of 2008, a new requirement was laid out for banks and credit card merchants to report payments to the IRS. This requirement took effect in 2011, and Form 1099-K was first issued in 2012. |
Bolding mine
Video comments:
1. Wow, he really stretched that out and repeated himself to make it 10+ minutes.
2. I'm not sure the IRS uses new trainees to do the "easy" audits before unleashing them on "higher value targets". I'm guessing that's not how it works.
3. Will the $600 level increase work for the IRS?
Probably but I doubt it's as much as he thinks, I'm sure it's mostly automated and computerized to catch people based on what's being reported from both ends.
I 100% agree that targeting people with a $600 level is stupid and a waste or time and resources, whatever those may be.
Similar topic?
They need to rescind eBay and other sources charging sales tax on used purchases from private parties.
This is BS too and double/triple/etc taxation |
Thanks- yes, 2008 is when it was signed into law. In 2012 when it took effect, guess who the majority in both the House and Senate was that did not make a peep about it taking effect. There's ONE R congressperson trying to get something going on getting the $600 thing overturned now, but her party does not seem interested in backing it.
Actually, I think it will ultimately wind up staying at the 20/ 20K limits. On the one hand people selling personal/ household items should be exempt from all the nonsense. On the other, there will always be uber rich people taking advantage, so there needs to be some method of dealing with that.
And yes, I was really startled to see conservative justices overturn precedent in S. Dakota vs Wayfair in 2018 in favor of all this government interstate tax nonsense. Now THAT is an accounting nightmare. _________________ Немає виправдання для війни! Я з Україною.
Bryan67 wrote: |
Just my hands. And a little lube. No tools. |
To best contact me, please use the EMAIL function in my profile |
|
Back to top |
|
|
|