If you sell stuff and receive more than $600 via Paypal, you will get 1099 from IRS

[krellmk]

https://www.cnn.com/2021/11/09/succe...ies/index.html.

Bad enough having to pay ~15% of your sales price to eBay

 

[J!m]

I always pad my sales to cover overhead.

Guess I’ll need more padding…

 

[mr_rye89]

I need to find an auction site that allows crypto

 

[Gepetto]

Absolutely. The 1099 will come from PayPal and is reported for tax purposes.

 

[BlazeES]

So what does that really mean though? A Paypal 1099 will report the sale as income? Or is this beginning of that Xiden Administration tracking of money flows?

 

[J!m]

Income. Taxable income.

 

[Skratch]

Its gonna be based on the honor system, what you paid for something and what you sell it for including labor if you add labor

 

[Gepetto]

It is a 1099K report that is provided and reports Gross amounts of payment card/third party network transactions. It also breaks those down by month for the entire year.

It is a revenue report only. It is up to the filer to keep a P&L statement of the offsetting COGS for this revenue. Like any business does.

 

[krellmk]

Sold a preamp to some guy in Cost Rica been waiting 1 month for flee bay to hand over my money.

 

[Gepetto]

Sold a preamp to some guy in Cost Rica been waiting 1 month for flee bay to hand over my money.

They are not swift, liked it when PayPal handled it much better.

 

[J!m]

Probably because it’s international.

My payouts are happening pretty quickly; however, no international sales since PayPal was cut loose.

And how would you file that income without a business? Will all eBay users be required to obtain a tax ID number? I have one but I don’t share it with eBay. I don’t do enough volume to make it worth my while.

Where will this end? We left England’s rule to avoid all this taxation, remember? It hasn’t even been 300 years yet.

 

[Gepetto]

It happened coincident or nearly so with the tax requirement for internet companies of a certain large size like Amazon, PayPal and Ebay to collect and distribute sales tax to the individual states.

 

[J!m]

And they do collect and distribute sales tax from the buyers- the seller is out of the loop.

Downside? I bought a watch from Japan. Paid sales tax AND import duty, which I believe is not legal. I brought it up with the brick wall that is eBay help desk…