PayPal Sellers....The Tax Man cometh.....

[bowhuntr09]

Just be aware that if you sell items and accept Paypal G&S for payment, you may be receiving a 1099 from Paypal. I'm not sure if its nationwide or state specific, but I'm in VA and received a 1099 from PP for the proceeds I received from selling items this year.

 

[iamcorey]

I’m no accountant. So I have to pay taxes on selling used gear if I get a 1099 from them?


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[MaxJac]

I’m no accountant. So I have to pay taxes on selling used gear if I get a 1099 from them?


I'm not an accountant either. I take whatever 1099 I get and turn it in with all the other tax papers to the accountant. Let her tell me if it needs to be included or not takes the guess work away from me. In the long run, it's much less head ache to report a 255$ (or what ever much) than having to explain anything later on. I'll let y'all know what she said after I had the conversation.

 

[Jay_Disarray]

from what i can tell, you are only required to report it if you do over 20k and 200+ sales through the year, but im not an accountant. it seems to be more targeted towards people who conduct business on PP


edit: from the Intuit website

"People sending money back and forth for their share of dinner don't have to worry about reporting such payments on their tax returns. However, the moment you begin accepting business payments on a P2P platform, you're responsible for reporting those earnings. "

PayPal and Venmo Taxes: What You Need to Know About P2P Platforms

With the increased use of mobile payment apps, you may wonder — how do these apps affect your taxes? Here's what you need to know to use these tools effectively for yourself or your business.

turbotax.intuit.com

 

[gcr0003]

I’m no accountant. So I have to pay taxes on selling used gear if I get a 1099 from them?


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Technically you are required to pay taxes on yard/garage sales as well, but fat chance I’m doing that.

 

[bowhuntr09]

I'm no accountant either, usually use an online program to do my taxes. My PP transactions were just under $1200 for the year. Hopefully I can offset the "income" with the acquisition costs of the items i sold.

 

[iamcorey]

I'm no accountant either, usually use an online program to do my taxes. My PP transactions were just under $1200 for the year. Hopefully I can offset the "income" with the acquisition costs of the items i sold.

If breaking even results in no tax then that’s where my
math is headed.


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[Vtbow]

I’m no accountant. So I have to pay taxes on selling used gear if I get a 1099 from them?


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Only if their is gain involved. No need or requirement to report items used for personal use and then sold for a loss, or break even...like a yardsale....

 

[bowhuntr09]

Only if their is gain involved. No need or requirement to report items used for personal use and then sold for a loss, or break even...like a yardsale....

with a 1099 reported, what do you have to show to offset it?

 

[St.CroixArcher]

To me it’s just another reason to not sell anything!!

 

[Vtbow]

with a 1099 reported, what do you have to show to offset it?

according to my accountant, nothing. They are required by law to send you one. You are not required by law to report it if it was not originally purchased for resale to sell for profit...so essentially, you can ignore it...
Disclaimer, im not an accountant. But this is what my accountant told me.

 

[swampsnyper]

Technically you are required to pay taxes on yard/garage sales as well, but fat chance I’m doing that.

I’m sure you already surpassed the 200+ minimum sales already this year. Enjoy your audit! LMAO!

 

[Gamover06]

It's like paypal telling your wife how much crap you buy and sell.

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