Warning to all sellers!

[GrayCreed]

Not sure where I should make this post! Administrator please feel free to let me know/move if this is the wrong spot (probably is)

I just want to let everyone know that the IRS now has this new rule that all the popular online payment systems will now be recording how much you are paid and send you a 1099 at the end of the year. Most people will not even know about this until it's too late.
This means that if you accept money from someone through PayPal, zelle, cashapp, that the IRS will require them to report you if you make over $600 in a year.

I'm not sure it applies to Friends & Family transactions but don't quote me on that because more research needs to be done.

How this works:
Let's say you buy a gun or some other thing at Scheels. You spend $850 on the gun. Since guns are not tax deductible, you don't think twice about saving the receipt. Water goes under the bridge. You decide later to sell the gun so you list it on here or some other site. When the gun sells the buyer PayPal's you the money and you do everything legally, ship to a FFL etc... But then at the end of 2022 PayPal sends you a 1099 and you are required to report it as income as if you created it out of thin air! Not trying to discourage anyone from buying or selling. Not trying to make anyone afraid or anything but everyone needs needs to know about this so you can save receipts or use a different system to exchange money.

 

[boarhunt]

Not sure where I should make this post! Administrator please feel free to let me know/move if this is the wrong spot (probably is)

I just want to let everyone know that the IRS now has this new rule that all the popular online payment systems will now be recording how much you are paid and send you a 1099 at the end of the year. Most people will not even know about this until it's too late.
This means that if you accept money from someone through PayPal, zelle, cashapp, that the IRS will require them to report you if you make over $600 in a year.

I'm not sure it applies to Friends & Family transactions but don't quote me on that because more research needs to be done.

How this works:
Let's say you buy a gun or some other thing at Scheels. You spend $850 on the gun. Since guns are not tax deductible, you don't think twice about saving the receipt. Water goes under the bridge. You decide later to sell the gun so you list it on here or some other site. When the gun sells the buyer PayPal's you the money and you do everything legally, ship to a FFL etc... But then at the end of 2022 PayPal sends you a 1099 and you are required to report it as income as if you created it out of thin air! Not trying to discourage anyone from buying or selling. Not trying to make anyone afraid or anything but everyone needs needs to know about this so you can save receipts or use a different system to exchange money.

Thank you very much!

IRS Delays Requiring Users of Venmo And Other Payment Apps To Report Transactions Over $600

Taxpayers who use Cash App, Venmo and similar payment apps have been given another reprieve from a change that will require more reporting to the IRS. App users are currently required to report payments if they’re in the tens of thousands of dollars, and if numerous transactions are completed dur

www.forbes.com

 

[Deputy819]

Looks like we're all gonna be "Loved One's" and I never actually "make money" on anything I sell on here.

 

[codyadams]

View attachment 325080

Looks like we're all gonna be "Loved One's" and I never actually "make money" on anything I sell on here.

Seems like most everything we do on here would fall under that last paragraph

 

[338weatherby]

Seems like most everything we do on here would fall under that last paragraph

Agreed.

 

[Gary in MD]

Just use a postal money order. So what if it takes a couple days to get there in the mail.
I'd rather the IRS ( or anyone else for that matter) to NOT know what and how I spend MY money.
Gary

 

[DoneNOut]

Back to money orders...

 

[DoneNOut]

Seems like most everything we do on here would fall under that last paragraph

Yeah, but you are gonna need to keep records and fill out a tax form still. Even if it is to say, "Its all gifts from loved ones".

 

[FEENIX]

Back to money orders...

I only deal with personal checks or USPS MO as a form of payment in my transactions here, and I gained close friends in the process.

 

[VLD Pilot]

Not sure where I should make this post! Administrator please feel free to let me know/move if this is the wrong spot (probably is)

I just want to let everyone know that the IRS now has this new rule that all the popular online payment systems will now be recording how much you are paid and send you a 1099 at the end of the year. Most people will not even know about this until it's too late.
This means that if you accept money from someone through PayPal, zelle, cashapp, that the IRS will require them to report you if you make over $600 in a year.

I'm not sure it applies to Friends & Family transactions but don't quote me on that because more research needs to be done.

How this works:
Let's say you buy a gun or some other thing at Scheels. You spend $850 on the gun. Since guns are not tax deductible, you don't think twice about saving the receipt. Water goes under the bridge. You decide later to sell the gun so you list it on here or some other site. When the gun sells the buyer PayPal's you the money and you do everything legally, ship to a FFL etc... But then at the end of 2022 PayPal sends you a 1099 and you are required to report it as income as if you created it out of thin air! Not trying to discourage anyone from buying or selling. Not trying to make anyone afraid or anything but everyone needs needs to know about this so you can save receipts or use a different system to exchange money.

So the answer is, do not use an electronic form of payment. Send money orders or checks to purchase if seller and buyer can agree to that form of payment.

 

[flyguy1]

PayPal has been anti-gun for years. I use checks; haven't been burned yet, but on large purchases I talk to folks first if it's an individual seller.

 

[Mason Blackmon]

I've noticed a fair number of members switched to money orders or checks so far anyways. People on here are good and usually money order and the goods can be sent at the same time without any trouble. At least that's been my good experiences so far

 

[FEENIX]

So the answer is, do not use an electronic form of payment. Send money orders or checks to purchase if seller and buyer can agree to that form of payment.

Yes Sir! They are hesitant because it takes an additional step in their automated process, but I have done it with x-caliber and Oryx (MDT). I am in the process of making arrangements with a suppressor company.

 

[DoneNOut]

Goodbye Gunbroker sales, even using MO. GB will be reporting all sales 1099-K.