PayPal & 2022 Seller Reports to the IRS..

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PayPal & 2022 Seller Reports to the IRS..

Post by Thunder1 » December 2nd 2021, 2:18pm

This is unconfirmed, but I thought I'd pass it along anyways..

Beginning in January of 2022, PayPal will be required to report to the IRS all USA sales that they process of $600.00 and above..so, 2022 sellers of watches that receive proceeds via PayPal that amount to $600.00 and above will receive a Form 1099 that they will have to report & respond to on their 2022 Form 1040 tax return..hopefully, we've all kept receipts of the purchase price of the watch(s) that we intend to sell to offset any possible profit on those sales..

Unconfirmed, but I thought I'd pass it along.. :dssd:
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by koimaster » December 2nd 2021, 3:59pm

From Skrill which is considered the best alternative to PayPal

If you are making a profit selling things because you buy them for a lower cost and sell them for a higher cost, you are self-employed in the eyes of the IRS. You owe tax on the amount of your profit (your sales minus your expenses). It does not matter if you're being paid in cash, a check, Venmo, or Skrill. Hopefully you're keeping records of the price of each item when you bought and sold it. You owe tax if you have more than $400 profit in a year.

If you are selling secondhand items that you already have, there's no income tax. It's not income if you are selling something for less than you paid for it.
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by smellody » December 2nd 2021, 4:41pm

koimaster wrote:
December 2nd 2021, 3:59pm
From Skrill which is considered the best alternative to PayPal

If you are making a profit selling things because you buy them for a lower cost and sell them for a higher cost, you are self-employed in the eyes of the IRS. You owe tax on the amount of your profit (your sales minus your expenses). It does not matter if you're being paid in cash, a check, Venmo, or Skrill. Hopefully you're keeping records of the price of each item when you bought and sold it. You owe tax if you have more than $400 profit in a year.

If you are selling secondhand items that you already have, there's no income tax. It's not income if you are selling something for less than you paid for it.
Greedy fucking government. How long must someone possess something for it to be a second hand item? A day, month, a year?
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by jason_recliner » December 2nd 2021, 6:22pm

Nah, that's rubbish unless you're a business. If they are going to tax any profit on sales then you can deduct purchases and losses on sales (as I did when I had my watch retail and repair business). Otherwise you're just buying jewellery for yourself. They can't have it both ways.
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by smellody » December 2nd 2021, 7:17pm

jason_recliner wrote:
December 2nd 2021, 6:22pm
Nah, that's rubbish unless you're a business. If they are going to tax any profit on days then you can deduct purchases and losses on sales (as I did when I had my watch retail and repair business). Otherwise you're just buying jewellery for yourself. They can't have it both ways.
Agree 100%
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by 3Flushes » December 2nd 2021, 10:04pm

jason_recliner wrote:
December 2nd 2021, 6:22pm
Nah, that's rubbish unless you're a business. If they are going to tax any profit on sales then you can deduct purchases and losses on sales (as I did when I had my watch retail and repair business). Otherwise you're just buying jewellery for yourself. They can't have it both ways.
They do get it both ways---

Technically, if you make any money on anything you sell, say a Daytona you bought for $13,500 and sold for $35,000 (if one can still buy one so cheaply), you owe Uncle Sam. If you are a collector, you may get away with paying capital gains tax. Sell it on eBay and be prepared to pay self employment tax rates, and get ready to bend over and grab your ankles - they are the highest rates in the code.

I have a friend that used to sell shit on eBay and he never paid any taxes on anything he made. One year he got audited and was informed he'd have to cough up for all three years he'd been "self-employed". He decides to itemize and sends in amended returns. They disallowed all of them except the cost of the goods - the ones for which he had a credible record - because they said his business actually amounted to a hobby and didn't qualify for the deductions. He was taxed at the "self-employment" rate nonetheless.

Good thing they're only going after the one percenters, and anyone with $700 in a checking account, and hell, how many Americans have that kind of money just laying around?

I may vote GOP in '24 myself.
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by jason_recliner » December 2nd 2021, 10:36pm

3Flushes wrote:
December 2nd 2021, 10:04pm
jason_recliner wrote:
December 2nd 2021, 6:22pm
Nah, that's rubbish unless you're a business. If they are going to tax any profit on sales then you can deduct purchases and losses on sales (as I did when I had my watch retail and repair business). Otherwise you're just buying jewellery for yourself. They can't have it both ways.
They do get it both ways---

Technically, if you make any money on anything you sell, say a Daytona you bought for $13,500 and sold for $35,000 (if one can still buy one so cheaply), you owe Uncle Sam. If you are a collector, you may get away with paying capital gains tax. Sell it on eBay and be prepared to pay self employment tax rates, and get ready to bend over and grab your ankles - they are the highest rates in the code.

I have a friend that used to sell shit on eBay and he never paid any taxes on anything he made. One year he got audited and was informed he'd have to cough up for all three years he'd been "self-employed". He decides to itemize and sends in amended returns. They disallowed all of them except the cost of the goods - the ones for which he had a credible record - because they said his business actually amounted to a hobby and didn't qualify for the deductions. He was taxed at the "self-employment" rate nonetheless.

Good thing they're only going after the one percenters, and anyone with $700 in a checking account, and hell, how many Americans have that kind of money just laying around?

I may vote GOP in '24 myself.
Yeah, wow. Just discovered we're supposed to pay CGT on watches here, too. And you can't deduct capital losses on collectables from your income, only from gains on other collectables. That's so dodgy. Thankfully I couldn't care less about the value of my watches.
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by codguy » December 3rd 2021, 10:32am

Just wait for the government(s) to start monitoring forum for-sale threads. Got to be yet another reason the US wants to hire thousands more IRS agents.

On the good side, it should slowdown and/or stop all the ill serial flippers in this time-telling jewelry hobby of ours.
You know the ones............those "collectors" that purchase a 50-100+ watches each year only to quickly sell them off on forums/ebay/craigslist/etc. Perhaps mandatory IRS reporting will assist them in getting a handle on their sickness.
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by AJC » December 5th 2021, 9:18am

Need to make $500, now the government wants their little part. Well I'll just receive it in 2 $250 payments
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Re: PayPal & 2022 Seller Reports to the IRS..

Post by Thunder1 » December 5th 2021, 1:03pm

AJC wrote:
December 5th 2021, 9:18am
Need to make $500, now the government wants their little part. Well I'll just receive it in 2 $250 payments
Well, it's my understanding is that the reportable amount is $600.00 for 2002, and that amount is cumulative...
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