Supposedly if you pay friends and family they won't report.
-
You must be a Supporting Member to create a listing in the Long Range Hunting Marketplace. To read all the rules, click here.
We offer multiple options to become a Supporting Member here.
Ways around being 1099?
- Thread starter bgbuck153
- Start date
Help Support Long Range Hunting Forum
I sense they're looking to catch self employed people underreporting their earnings for services provided under the table. House cleaners, landscape, hairdressers, handyman type people that just underreport
Unfortunately, you might get noticed/flagged if you're bringing in many thousands of dollars of "revenue" a year from online sales. Probably depends on how that compares to W2 wages claimed and all that. It's going to have to be material enough for them to care.
There's a handful of people on here that probably buy and sell $20k-$30k+ a year. That might get noticed (if PayPal).
Unfortunately, you might get noticed/flagged if you're bringing in many thousands of dollars of "revenue" a year from online sales. Probably depends on how that compares to W2 wages claimed and all that. It's going to have to be material enough for them to care.
There's a handful of people on here that probably buy and sell $20k-$30k+ a year. That might get noticed (if PayPal).
Last edited:
imartin
Well-Known Member
What a mess. I would guess all of us our doing this as a hobby. We aren't allowed to write off hobby losses. I don't see why you would pay tax on a hobby gain, if there is any.
pwrdbycotn
Well-Known Member
- Joined
- Dec 15, 2010
- Messages
- 589
It's $600. Once you hit $600 in goods and seevices sales, you're getting a 1099. Then you have the pleasure of trying to find old receipts and records of what you paid for it to prove you sold it at a loss.
It's not just for the folks that sell 20k a year.
And $20k aint **** these days anyway. It's not hard to have $20k worth of guns and optics laying around collecting dust with the price of things these days.
VTbluegrass
Well-Known Member
And we are back to cash, check, and money orders again instead of payment apps.
I hope all read this!
Money order can be very bad. I normally don't buy if a MO is requested for form of payment.
I had a bad experience gave a sell a MO for a item 900.00 which is MO limit. He said he never got it and said I'd have to resent payment, I went to the post office and explained he didn't receive payment, the post office said it would take 30 days to trace it , to make sure no one cashed it and if not cashed they would stop it.
The person sold the item to someone else and within a month the guys wife cashed my money order, dead horse there, I lost 900.00 I exhausted all avenues, lawyer's,police, D.A. S office and I was told money orders were bad form of payment.
Not all people are bad but it only takes one.
P.S. that did not happen on this Forum.
Money order can be very bad. I normally don't buy if a MO is requested for form of payment.
I had a bad experience gave a sell a MO for a item 900.00 which is MO limit. He said he never got it and said I'd have to resent payment, I went to the post office and explained he didn't receive payment, the post office said it would take 30 days to trace it , to make sure no one cashed it and if not cashed they would stop it.
The person sold the item to someone else and within a month the guys wife cashed my money order, dead horse there, I lost 900.00 I exhausted all avenues, lawyer's,police, D.A. S office and I was told money orders were bad form of payment.
Not all people are bad but it only takes one.
P.S. that did not happen on this Forum.
I think that some people are tying to make something out of nothing and making people think that they are going to have to pay tax on things they sold on PayPal. Tax experts! It's a lot of confusion and misinformation. These people may be working for BRANDON!.
Another Ignore Thread.
Another Ignore Thread.
Last edited:
They may also be trying to be proactive to lessen the chances on an audit due to unreported income.
imartin
Well-Known Member
It will likely trigger a "paper audit" if you don't report the 1099 income. IRS is going to be sending letters all over because of this. Which is why I commented this is a mess, since I don't believe every $600+ transfer of money on Paypal is a taxable transaction. Are all of us who sell guns out of a private collection, for hobby purposes supposed to report on Schedule C? Doesn't make any sense. But if you don't, you get a notice. I've been out of the tax game since 2017, will need to look into this further.
Only way your writing off a loss is if its business.
Doesn't really differ from a check, venmo, zelle, cashapp, or PayPal friends/family. The only way you're covered is PayPal goods/services. Even this can backfire on the seller if the buyer opens a PayPal claim/dispute. If buyer is awarded the claim they'll have both the product and the money leaving you with no recourse. It's a shame that there's so many shady people and scammers in the world these days.
If you have a business or LLc this won't affect you. If you are just a regular joe it will. If you receive payment through PayPal for more than 600 in a calendar year you will be required to report it to the IRS as income. If you have a receipt you could claim that you paid more for the item than it was sold for. However if they audit you... You will have to explain how the custom rifle you sold with brass scope and components was worth 10,000 when the actual "firearm" was only worth $1600.
Sorry, a little off topic but equally as asinine. Also, this tax season don't forget to claim your drug sales and stolen goods....taken directly from Publication 17 off of the IRS website https://www.irs.gov/publications/p17
Illegal activities.
Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.
Stolen property.
If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.
Illegal activities.
Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.
Stolen property.
If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.
