paypal 1099.

[rbkt65]

does anyone really understand it? if so, try to explain it to me, please. what i know for sure. last jan,2021, i got a 1099 from them as i sold about 2500.00 in parts. my tax person could not understand it. now they say over 600.00 total sales and youmay have to have a taxpayer id number. any clear help will be appreciated. can't really make heads or tails from paypal web site or any other links to the new rules. tia.

 

[72ls5fla]

sales over $600 they have to report 1099/1096 if you are not doing business as a C/S Corp or LLC
so if you are independent contractor, self employed - you get a 1099. you will need to report this income on your 1040 tax return.

the tax payer id can be a SSN or a Federal Employer Identification Number (FEIN)
Likely in your case, you will use your SSN.

Not 100% sure, but I think if you do not do invoicing and just have funds sent, you won't get caught up in the 1099 issue.
and sent as Friend/Family is even better.

 

[Jerry Hall]

Do nothing as goods and services. PayPal friends and family and no mention of parts.

 

[MIKESPOLARA]

does anyone really understand it? if so, try to explain it to me, please. what i know for sure. last jan,2021, i got a 1099 from them as i sold about 2500.00 in parts. my tax person could not understand it. now they say over 600.00 total sales and youmay have to have a taxpayer id number. any clear help will be appreciated. can't really make heads or tails from paypal web site or any other links to the new rules. tia.

Simple you needed to show that $2500 as income. If not you could get audited over it.
Now, let's say it was used items you sold that cost you more then you sold them for then you also deduct the cost of goods with in your filing so net tax could be zero

 

[BeepBeepRR]

Do nothing as goods and services. PayPal friends and family and no mention of parts.

This only works if you fully trust the seller. Be careful with whom you deal with. But I agree.

 

[monaco66coupe]

absolutely,, Paypal will be cancelled by me after using the site 15 years, if I see a 1099
long before paypal, I used mopar collectors guide to sell parts. 1989-2006
People mailed checks, or money orders. I never had any problem with Buyers, and I always backed up what I sold. This crap with the IRS started with Biden being elected, sorry to Interject politics, but that is all it is. Nowdays if my buyer wants it, I will sell it and back it up.It is not Paypal business as to what our business is.and I tell buyers if they don't like it, buy the parts somewhere else.

 

[MIKESPOLARA]

This only works if you fully trust the seller. Be careful with whom you deal with. But I agree.

Exactly as the other party can say thanks you sent me money because we're friends!

 

[slimt]

absolutely,, Paypal will be cancelled by me after using the site 15 years, if I see a 1099.

I said good riddance to that a while ago.

 

[MIKESPOLARA]

does anyone really understand it? if so, try to explain it to me, please. what i know for sure. last jan,2021, i got a 1099 from them as i sold about 2500.00 in parts. my tax person could not understand it. now they say over 600.00 total sales and youmay have to have a taxpayer id number. any clear help will be appreciated. can't really make heads or tails from paypal web site or any other links to the new rules. tia.

Oh, and you may want someone more knowledgeable to prepare your taxes.
Your SSN is your tax payer i.d.

 

[Jerry Hall]

You can easily cover the income by what you paid for the part, and the storage costs for the time you have had it. It just calls for keeping records, something most of us don't like to do.

 

[toolmanmike]

absolutely,, Paypal will be cancelled by me after using the site 15 years, if I see a 1099
long before paypal, I used mopar collectors guide to sell parts. 1989-2006
People mailed checks, or money orders. I never had any problem with Buyers, and I always backed up what I sold. This crap with the IRS started with Biden being elected, sorry to Interject politics, but that is all it is. Nowdays if my buyer wants it, I will sell it and back it up.It is not Paypal business as to what our business is.and I tell buyers if they don't like it, buy the parts somewhere else.

Wrong. State tax started being collected October of 2019. https://www.eseller365.com/ebay-and...on-how-sales-tax-will-be-managed-for-sellers/

 

[monaco66coupe]

my position this is not a business,as I am liquidating stuff owned for thirty plus years,and it is not any ones business.no different than selling An old lawn tractor or used furniture.
If it was a true business,that is different.
many guys here are simply getting rid of things they don't need.Sales tax is one thing, but being subject to federal income tax on the amount is a whole different thing.

and we don't need to be babysat by paypal.

 

[sam dupont]

and we don't need to be babysat by paypal.[/QUOTE]

I read somewhere that our Banks will be babysitting us too.

 

[monaco66coupe]

they wanted to, but not yet.

 

[Scott Bender]

So you by a car for $25000 then 2 years sell it for $20000. I lost $5000 so how do you show that fact?

 

[slimt]

So you by a car for $25000 then 2 years sell it for $20000. I lost $5000 so how do you show that fact?

well when you buy a new car from a dealer lot. Drive to the sidewalk. You loose 10,000. And you paid full tax on the new sales total. Probably something of the same.

 

[dadsbee]

So you by a car for $25000 then 2 years sell it for $20000. I lost $5000 so how do you show that fact?

In their eyes for an individual that's just typical auto depreciation. Now if you bought it for 20 grand and sold it for 25 then they'd tell you it was a taxable capital gain! LOL

 

[Jerry Hall]

So you by a car for $25000 then 2 years sell it for $20000. I lost $5000 so how do you show that fact?

You report it as such on your tax return if both were private sales. Just have the documentation to prove it if you are audited.

 

[Potts]

Doesn't this government suck the big one?

 

[MoparLeo]

You guys are blaming the messenger.
PAY-PAL does not want to do anymore reporting or paperwork than they already do...it is the IRS and state tax boards that want your money.
Ebay does not want to be a bank either and so they started doing payouts on all eBay sales right back to the sellers bank/checking account.
The government just sees another income stream for them to spend.....