Paypal's new tax policies
Jan 26, 2022 15:46:03 #
If I sell anything in the future it will not be with PP, check only. The extra paper work is not worth it to me. I need to report 1100 dollars but no need to pay taxes on it, not worth the extra trouble.
Jan 26, 2022 15:53:40 #
Interesting.
If one buys something for $500 and sells it for $300 at a later point in time,
why is that $300 considered income. It's just a partial reimbursement for the outgo. You basically rented the item for $200.
Now if one sold that item for $700, I can see where they would want to come after you for a $200 profit (income).
If one buys something for $500 and sells it for $300 at a later point in time,
why is that $300 considered income. It's just a partial reimbursement for the outgo. You basically rented the item for $200.
Now if one sold that item for $700, I can see where they would want to come after you for a $200 profit (income).
Jan 26, 2022 16:00:12 #
Longshadow wrote:
Interesting.
If one buys something for $500 and sells it for $300 at a later point in time,
why is that $300 considered income. It's just a partial reimbursement for the outgo. You basically rented the item for $200.
Now if one sold that item for $700, I can see where they would want to come after you for a $200 profit (income).
If one buys something for $500 and sells it for $300 at a later point in time,
why is that $300 considered income. It's just a partial reimbursement for the outgo. You basically rented the item for $200.
Now if one sold that item for $700, I can see where they would want to come after you for a $200 profit (income).
From what I understand if you pay 500 for something and then sell it for 300 you won't be taxed because you lost money.But a pita with keeping invoices.
Jan 26, 2022 16:09:31 #
JimBart
Loc: Western Michigan
Government trying to collect taxes on ALL income no matter how it it received or what you spent for the item. Basically stimulus at work
In addition they are attempting to locate ways to tax bartering of services and products
In addition they are attempting to locate ways to tax bartering of services and products
Jan 26, 2022 16:10:55 #
WayneL wrote:
From what I understand if you pay 500 for something and then sell it for 300 you won't be taxed because you lost money.But a pita with keeping invoices.
Agreed.
The government does not want to miss getting a buck from the underground economy.
Pay-Pal, et al. are all traceable, and it would be up to you to prove it was not a profit.
Does everyone have the receipts for the stuff they purchased YEARS ago?
Jan 26, 2022 16:54:45 #
wrangler5
Loc: Missouri
PayPal is only reporting what they know you received. If you lost money on a t***saction it will be up to you to show that on your return - PayPal doesn't know anything about it, and so can't report it.
Contrast that with the year-end statement you get from a stock broker who keeps your investment assets on their books. If you sell something that they bought for you in the past, and so have a record of what you paid, they report both the money from the sale and the amount you paid. (You STILL put the full amount received on your return, but you subtract the amount you paid, to come up with the taxable gain or loss. The broker's report just makes the numbers readily available to you.) If they don't know what you paid for the asset, they simply report the gross amount you received, and it's up to you to find and enter the amount you paid. Just like PayPal does.
BTW this is not new. The law requiring theses reports from operations like PayPal has been in place since 2008. What's new, beginning in 2022, is that the reporting threshold has been lowered substantially, so that a LOT more people are going to be getting a Form 1099-K.
Contrast that with the year-end statement you get from a stock broker who keeps your investment assets on their books. If you sell something that they bought for you in the past, and so have a record of what you paid, they report both the money from the sale and the amount you paid. (You STILL put the full amount received on your return, but you subtract the amount you paid, to come up with the taxable gain or loss. The broker's report just makes the numbers readily available to you.) If they don't know what you paid for the asset, they simply report the gross amount you received, and it's up to you to find and enter the amount you paid. Just like PayPal does.
BTW this is not new. The law requiring theses reports from operations like PayPal has been in place since 2008. What's new, beginning in 2022, is that the reporting threshold has been lowered substantially, so that a LOT more people are going to be getting a Form 1099-K.
Jan 26, 2022 16:57:43 #
wrangler5 wrote:
...
...
BTW this is not new. The law requiring theses reports from operations like PayPal has been in place since 2008. What's new, beginning in 2022, is that the reporting threshold has been lowered substantially, so that a LOT more people are going to be getting a Form 1099-K.
...
BTW this is not new. The law requiring theses reports from operations like PayPal has been in place since 2008. What's new, beginning in 2022, is that the reporting threshold has been lowered substantially, so that a LOT more people are going to be getting a Form 1099-K.
Do you know from what to what?
Jan 26, 2022 17:09:38 #
wrangler5
Loc: Missouri
Old rule: report payments to anybody who got over $20,000 from 200 or more t***sactions. (Law was passed in 2008, reporting actually began for 2011.)
New rule: report payments to anybody who got over $600, without regard to the number of t***sactions.
New rule: report payments to anybody who got over $600, without regard to the number of t***sactions.
Jan 26, 2022 17:15:27 #
wrangler5 wrote:
Old rule: report payments to anybody who got over $20,000 from 200 or more t***sactions. (Law was passed in 2008, reporting actually began for 2011.)
New rule: report payments to anybody who got over $600, without regard to the number of t***sactions.
New rule: report payments to anybody who got over $600, without regard to the number of t***sactions.
WOW!
Jan 26, 2022 17:58:46 #
Longshadow wrote:
Interesting.
If one buys something for $500 and sells it for $300 at a later point in time,
why is that $300 considered income. It's just a partial reimbursement for the outgo. You basically rented the item for $200.
Now if one sold that item for $700, I can see where they would want to come after you for a $200 profit (income).
If one buys something for $500 and sells it for $300 at a later point in time,
why is that $300 considered income. It's just a partial reimbursement for the outgo. You basically rented the item for $200.
Now if one sold that item for $700, I can see where they would want to come after you for a $200 profit (income).
Welcome to Biden's America!!!!!
Jan 26, 2022 19:21:35 #
MT Shooter wrote:
Welcome to Biden's America!!!!!
Pretty hard to attribute that to a president of 1 year. The fact is that the IRS is a mess - 8 months or more to process a return filed on time, and you can blame that on our ridiculous tax system (which hardly started a year ago) and C***d (which didn’t start a year ago either). Tax laws are passed by the congress, and the vast majority of the rules/laws in place have been in place for well more than a year since the congress has been (barely) under Democratic control. This just isn’t really a partisan issue.
Jan 26, 2022 19:23:58 #
TriX wrote:
Pretty hard to attribute that to a president of 1 ... (show quote)
Research the $600 rule yourself. Even banks are becoming required to report any t***sactions of $600 or more, as per Bidens mandate!
Jan 26, 2022 19:37:29 #
MT Shooter wrote:
Research the $600 rule yourself. Even banks are becoming required to report any t***sactions of $600 or more, as per Bidens mandate!
Didn't it used to be $10,000?
Jan 26, 2022 19:40:54 #
Longshadow wrote:
Didn't it used to be $10,000?
Yep.
The $600 rule is NOT a new tax as some are purporting. It is simply a direct mandate from Biden to the IRS to force a wide variety of businesses to rat outvtheir customers to the IRS for tax persecution.
Jan 26, 2022 19:48:19 #
MT Shooter wrote:
Research the $600 rule yourself. Even banks are becoming required to report any t***sactions of $600 or more, as per Bidens mandate!
You are correct that this was part of the American Rescue Plan passed in March by the Democratic majority in both houses. And I think it is also fair to state that Biden pushed this bill, but I don’t think it is accurate to state that every provision of this huge bill was directly attributable to Biden’s personal effort, nor is it accurate to state that this is a direct mandate from the president. The bill, as I’m sure you know, has much larger consequences than this small provision. I should point out that it is aimed at commercial t***sactions, not interpersonal t***sactions. I think this is a pretty fair description: https://www.nbcnews.com/news/venmo-paypal-zelle-must-report-600-t***sactions-irs-rcna11260
I also think it’s highly likely that the bill contains some provisions that benefit you as well as the average citizen, although I am NOT happy seeing the national debt continue to increase as it did under the last president as well, increasing from 21 Trillion to 28 Trillion from 2018 to 2021.
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