Ways around being 1099?

[BillLarson]

What's wrong with postal money orders?

That`s what I use right now...... BUT.... I`m looking for something better...#1 USPS..... is very slow.#2.......I have had M.O.`s(2) go missing.Get to who I sent it to and envelope is empty and taped shut.
I`m open to suggestions....

 

[fnlights]

With being a tax CPA, I have been getting this question all the time. If you get over $600 cumulative from Paypal or Venmo goods and services then you will get a 1099-K. The IRS could care less about money sent via friends and family as long as it is below the annual gift exclusion and as long as it is for nontaxable items (holiday or birthday gift, paying someone for your share of rent, etc).

Most items we sell on here are at a loss (well maybe a slight gain because with the shortage everyone is selling at a high price right now) so it should not matter. The issue being, nobody really knows how strict the IRS is going to be on this as it was just announced not long ago. Technically they could require documentation on the original purchase price, which 99% of the time most of us do not have and will force us to pay tax on it or guestimate our purchase price. Which if the IRS ever questions they will likely disregard and make you pay tax anyways. I will keep looking for updated guidance on this.

But remember we were all promised no tax increases on anyone making under $400k/year lol FJB

 

[L.Sherm]

New tax law requires a 1099 on anything over $600 in accumulated sales through electronic payment services, such as paypal.

The way around this is either to send/receive as friends and family or, as a seller, keep track of every receipt and prove you took a loss.

Ahhh then whats this post about.

 

[pwrdbycotn]

Ahhh then whats this post about.

Sorry man, I don't have time to draw you a picture. Read the guy's comment just above yours, or the Forbes link I posted.
Have a good one.

 

[L.Sherm]

Like I said there's always one

 

[asd9055]

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.

Was that a USPS money order or a one bought from another place?

 

[LRNut]

With being a tax CPA, I have been getting this question all the time. If you get over $600 cumulative from Paypal or Venmo goods and services then you will get a 1099-K. The IRS could care less about money sent via friends and family as long as it is below the annual gift exclusion and as long as it is for nontaxable items (holiday or birthday gift, paying someone for your share of rent, etc).

Most items we sell on here are at a loss (well maybe a slight gain because with the shortage everyone is selling at a high price right now) so it should not matter. The issue being, nobody really knows how strict the IRS is going to be on this as it was just announced not long ago. Technically they could require documentation on the original purchase price, which 99% of the time most of us do not have and will force us to pay tax on it or guestimate our purchase price. Which if the IRS ever questions they will likely disregard and make you pay tax anyways. I will keep looking for updated guidance on this.

But remember we were all promised no tax increases on anyone making under $400k/year lol FJB

Thanks for posting; I know a bit about tax law, but defer to my CPA - a man has to know his limits!

 

[SEGARE]

I say again, PayPal F&F will not generate a 1099 for excess of $600 in annual sales.

 

[LkeAF]

Many states have have these 'extra taxes" for a long time....
Idaho expects you to pay tax to buy a vehicle..then pay fees for your licensing....then charge someone you sell a used rig to....ir basically everything....
All online purchases that add taxes are supposed to go to the state..and if you order online and they don't collect taxes..you are supposed to remit to the state a tax for your purchase.....

Grabs popcorn and waits to here how this gets blamed on Brandon as well.......

 

[Kansaswoodguy]

As several of you have stated, stay with cash transactions, for as long as you can. There willl be coming a day.... probably sooner than a lot of you think, that American and the whole world will only have Crypto-Currency and every single penny will be tracked and taxed. There will be no loopholes, unless you are trading a gun for a couple of goats (bartering). But even then, bartering will be a felony and strictly outlawed, probably more serious a crime than murder.

Cash is King.



...........

We as Americans need to resist a cashless system we will all be screwed more than we are now if we don't.

 

[3darcher2]

The real question in my mind is let's say you sold three scopes this year. A couple newer ones you lost $200 each on but you also had a coveted silver Leupold you sold for $350 more than you paid for it 8 years ago. Who thinks you had a net $50 loss so nothing to see here and who thinks that each transaction stands on it's own so you need to pay tax on the $350? If you are a business, you wouldn't, but as an individual, what say ye?

Bonus question, I sold the scope but also drove 12 miles to UPS to send it. Do I deduct my $3.27 in packaging and my 24x$0.58 or whatever it is per mile from my profit? What if I drove 50 miles each way to buy in in 2014, is that a part of the cost of ownership? And when this happens 90 or 100 million times over, how does the IRS manage this. tracking down these scofflaws and getting their $28 in taxes?

 

[COBigJohn]

Let me state again.... Cash is King.....



......

 

[antelopedundee]

IRS form 1099 is not issued by the IRS; it is issued for a variety of payments from a party paying misc income of $600 or more. Your bank issues you a 1099-INT for interest payments. Sell any real estate and the title company will issue you a 1099-R.

PP or Venmo will issue a 1099-k. As of now I don't know if it will include cash like PPFF or not.

 

[antelopedundee]

SO, closing a PayPal account is probably a good thing???

Not if you want to use it to buy things.