Classified sales in the new tax era.

[Mastermind]

I've had several people tell me that Paypal would not allow a F&F payment(I think these were on the large side seems to me) and were forced into G&S to pay.

I've paid two different people tens of thousands of dollars yearly by friends and family. Never an issue.

 

[Stump Shot]

I've paid two different people tens of thousands of dollars yearly by friends and family. Never an issue.

Never had it come up before until lately, not real sure what the deal is.

 

[Lnk]

I've paid two different people tens of thousands of dollars yearly by friends and family. Never an issue.

If it ever becomes an issue, you could always rent pigs!

 

[Mastermind]

If it ever becomes an issue, you could always rent pigs!

We don't rent pigs.

 

[Lnk]

We don't rent pigs.

Yet!

 

[Mastermind]

Yet!

NEVER !!!!!!

 

[furb]

More stuff for confusion. I sold my house and an terribly disorganized. My local bank has a low mobile deposit so I mobile deposited through my online bank. That goes from online bank to local bank checking account, split to wife’s student loan account, our joint checking account, our joint savings account all over $600 transactions. My job I get paid once a more deposited to my local bank savings about and split between four to six accounts depending on what’s going on most over $600 each. I think that’s why they upped to bank transaction limits. There millions of transactions a day going on just between peoples accounts that don’t mean anything.

 

[Stevetheboatguy]

I've paid two different people tens of thousands of dollars yearly by friends and family. Never an issue.

You must have used the wrong PayPal address. I never got the funds........ Always my luck.


Never trust a pig farmer



Name that movie.










Steven

 

[Mastermind]

Snatch.

 

[Moparmyway]

Snatch.

Great movie

 

[Larry B]

Interesting thread. Asked my accountant about it. She said there are two different things to consider. Income tax and sales tax. If it is buying and selling saws or parts there is no need to consider claiming anything as income. Sales tax would only be an issue if you have purchased any of the saws or parts from a distributor wholesale and tax free. If you are an individual and not a business and you are doing private party to private party transactions on items that had the sales tax paid on them when originally purchased then no sales tax is collected. To be able to collect and report sales tax you need to be registed in your state with a TIN. Unless someone reports to the state they sold you untaxed wholesale items the government has no idea what you do. Vehicles are another story. Also, she said doing on-line sales may be subject to how the site handles things if the money transaction goes through them.

 

[Mastermind]

Interesting thread. Asked my accountant about it. She said there are two different things to consider. Income tax and sales tax. If it is buying and selling saws or parts there is no need to consider claiming anything as income. Sales tax would only be an issue if you have purchased any of the saws or parts from a distributor wholesale and tax free. If you are an individual and not a business and you are doing private party to private party transactions on items that had the sales tax paid on them when originally purchased then no sales tax is collected. To be able to collect and report sales tax you need to be registed in your state with a TIN. Unless someone reports to the state they sold you untaxed wholesale items the government has no idea what you do. Vehicles are another story. Also, she said doing on-line sales may be subject to how the site handles things if the money transaction goes through them.

The only winners here are the paid accountants.

 

[furb]

Interesting thread. Asked my accountant about it. She said there are two different things to consider. Income tax and sales tax. If it is buying and selling saws or parts there is no need to consider claiming anything as income. Sales tax would only be an issue if you have purchased any of the saws or parts from a distributor wholesale and tax free. If you are an individual and not a business and you are doing private party to private party transactions on items that had the sales tax paid on them when originally purchased then no sales tax is collected. To be able to collect and report sales tax you need to be registed in your state with a TIN. Unless someone reports to the state they sold you untaxed wholesale items the government has no idea what you do. Vehicles are another story. Also, she said doing on-line sales may be subject to how the site handles things if the money transaction goes through them.

I was told the same thing. The issue is if they audit you, you need to prove there was no profit. PayPal reporting may trigger the audit.

 

[Larry B]

I am not sure how paypal and ebay does things but i have sold items and had them paid for with paypal, some over $1K, and never had worried about reporting any tax or profit. A private seller to private seller transaction doesn't consider profit. If i bought a tool 40 years ago for a dollar and i sell it today for 100 dollars on ebay i would not have to report that as income. Evilbay may make you charge tax that you can't report. I don't know as i don't sell on Evilbay

 

[Mastermind]

When PayPal and eBay start sending out 1099s after the first of the year......you better be figuring out how what to do with that. If you ignore it, the IRS will be contacting you wanting their cut. Like I said before, the only winners here are the professional accountants. They will be tasked with helping folks like us stay outta trouble. And for that service, we will be paying them.

 

[Larry B]

When PayPal and eBay start sending out 1099s after the first of the year......you better be figuring out how what to do with that. If you ignore it, the IRS will be contacting you wanting their cut. Like I said before, the only winners here are the professional accountants. They will be tasked with helping folks like us stay outta trouble. And for that service, we will be paying them.

That is why i don't screw around with selling there. Their 1099 limit was $20,000 next year it will be $600. Thanks Joe.

 

[Mastermind]

Thanks Joe.

I agree.....but let's leave the politics out of it.

 

[Larry B]

When PayPal and eBay start sending out 1099s after the first of the year......you better be figuring out how what to do with that. If you ignore it, the IRS will be contacting you wanting their cut. Like I said before, the only winners here are the professional accountants. They will be tasked with helping folks like us stay outta trouble. And for that service, we will be paying them.

My accountant is worth every penny i pay her.

 

[Mastermind]

My accountant is worth every penny i pay her.

I agree again.

Mine has saved me from disaster.

 

[Flip]

Running a family farm, I never thought I would have to keep a law firm on retainer also.