Paypal Changes for 2022

This is a great thread and thank you as I got a - '' Notice '' from Pay-Pal that I had to give them my SS# and also my individual tax status. I thought it was actually a SCAM - which in all ways Pay-Pal is. They are corporate thives…...I have been on Audiogon for almost 22 years and between the Pay-Pal fees an Audiogon's fees along with shipping it is making it nearly impossible to do business here or on line for any stereo purchases. Politics aside which there are some good points here but usual we have the '' ideas'' that everything is a conspiracy and also let's keep giving more money to the people who don't want to work - not the ones who who can't work - but the ones who don't want to work …...so far left and far right. We need to get in the middle and work together otherwise we will be leaning either Chinese or Russian and no offense to the people of that country but more as usual to the leaders. We need to get some B****S here in the US an stop in the fighting between us. The government is looking for more revenue and taxing transactions on the Internet is where they are going. But to ALL of the individuals who noted that '' if ''we do report the above $600 transactions to the IRS - then I too want to be able to write off the depreciation as well. Fair is fair IRS.....but I is unnerving when the Bezeo's . Gates and Musks along with what 55 other US corporations do NOT pay the same proportion of taxes that I do . Now that is wrong but nobody that is Republican, Democrat or Independent or voted for Alice Cooper wants to take that on make it fair …...that's what we should all be ticked at . I understand that I have to pay taxes but let me just pay my fare share. This is still the best country in the world......but we need to look over our shoulders. I have not responded to Pay-Pal and I probably won't. Stay safe everyone.

To those of you who understand basis in property, I say (with an ode to AC/DC) I SALUTE YOU !!!

Example: I buy an amplifier for $5,000.00 and I pay 6% sales tax, My basis in the amp is $5,300.00. I sell it 2 years later for $3,300.00--I am selling it for a loss. The buyer has to pay tax depending on his/her jurisdiction, but I have no tax liability.

The 1099-K you may receive is only an indicia of what you received/transacted, not a precursor that automatically invokes a taxable event.

Technically, this has always been the law, it’s just the government lagged behind in updating existing laws to reflect online commerce. So I bid you all adieu, into the wild blue........

Highly recommend anyone making a true PROFIT from this business talk to a good tax lawyer in your own state. I used to write off expenses in a high-end horse breeding project in which the difference between a hobby and a taxable business was determined by whether you could declare a PROFIT in 2 out of 7 years.

So by all means, you must document your expenses (Roon, Qobuz, postage, Absolute Sound, packaging, internet fees, cable fees, any car use for the business, travel to shows, meals at shows, etc., etc. It's pretty easy to show a loss so you can write off stuff but your sphincter can get a workout around year 6 if you haven't declared a profit yet.

If you sell a pair of old JBL's for $200 more than you paid for them, nobody's going to know or care, but if you're making a living, it's taxable like any other job.

zelle site says they do NOT report to IRS nor do they issue 1099's

 

 

Does anyone have a link to these new limits? PP says it's still the 20,000/200 in a calendar year and they reference IRS IRC Section 6050W. Heres the link: https://www.irs.gov/pub/irs-utl/irdm_section_6050w_faqs_7_23_11.pdf

IRC Section 6050W says the same thing - 20,000/200 in a calendar year