WTF! I only sold $5,000 and got a 1099-k from paypal today

jr24ai3 · 01-31-2012, 01:56 PM

Just joking! Thought I'd put a scare into some of you guys out there who have been worrying about the paypal tax forms.

guru · 01-31-2012, 02:01 PM

Yep, if you made 200+ sales you will get one no matter what the total amount is.

VWBUS1978 · 01-31-2012, 02:02 PM

haha, i went and checked... nothing yet. i use a paypal credit card to buy everything i open. except when i am scrapping steel or copper for some cold hard cash. I am sure they take into account 99% of my sales are "hobby" related and at a loss compared to what i spend.

If you're buying from an LCS to sell/flip, please keep all of your receipts. I'm no tax professional, but if i can show a loss (even though my collection would put me into a profit) they will not tax loss.

Plus! you get to write off all state sales tax.

of course, i could be 100% wrong, i am not claming knowledge of anything tax related.

jr24ai3 · 01-31-2012, 02:03 PM

If you are getting one, you should have received an email yesterday from paypal stating that they are sending out forms by the end of the month.

jr24ai3 · 01-31-2012, 02:04 PM

Quote:

Originally Posted by guru

Yep, if you made 200+ sales you will get one no matter what the total amount is.

200 sales AND over 20k.

monkeymcgee · 01-31-2012, 02:04 PM

Edited: Never mind--not going to give out tax advice when it's not my area of expertise.

I will say this: check out IRS publication 535

pac213up · 01-31-2012, 02:05 PM

With or without the 1099 people should be reporting their income. I have a feeling those walking the thin line are going to pay for it down the road.

monkeymcgee · 01-31-2012, 02:08 PM

Quote:

Originally Posted by pac213up

With or without the 1099 people should be reporting their income. I have a feeling those walking the thin line are going to pay for it down the road.

+10000

You don't want to fool with the IRS

VWBUS1978 · 01-31-2012, 02:08 PM

Quote:

Originally Posted by jr24ai3

If you are getting one, you should have received an email yesterday from paypal stating that they are sending out forms by the end of the month.

sweet.... i am way over 200 transaction

jr24ai3 · 01-31-2012, 02:09 PM

Quote:

Originally Posted by pac213up

With or without the 1099 people should be reporting their income. I have a feeling those walking the thin line are going to pay for it down the road.

Agree you should report it. The problem some people have is they flip cards for very little profit. So they take in 20k, but only make a thousand or 2. Obviously they have to start keeping better records of what they spend. It's like going to the casino 10 times a year and winning $200 each time. How many people are keeping track of such small gains?

DaveTaplin · 01-31-2012, 02:25 PM

I sold mostly games and toys. Sales were 25K plus 11K in shipping, 1099K says 36K.

A lot of people are going have to spend a lot of time removing all the deductions.

nuccionino · 01-31-2012, 02:34 PM

I didn't make 10000 in sales and I got a form?

jr24ai3 · 01-31-2012, 03:21 PM

Quote:

Originally Posted by nuccionino

I didn't make 10000 in sales and I got a form?

Are you asking if you will get a form?

Cubs_rock21 · 01-31-2012, 03:21 PM

Sucks cause my sales and income are wayyy off...Im pretty sure ill get a form for over 200 payments...I constantly buy off eBay and flip right back, thus I may spend $1,000 and resell for $1,200...Than use that 1200 and flip those cards for 1300...Thus I only made 300.00 yet sales are 2500...#@#@#@#@ the tax man

imnotded · 01-31-2012, 03:23 PM

Quote:

Originally Posted by pac213up

With or without the 1099 people should be reporting their income. I have a feeling those walking the thin line are going to pay for it down the road.

A flat tax would fix this issue! But for now you are correct!

jr24ai3 · 01-31-2012, 03:28 PM

Quote:

Originally Posted by Cubs_rock21

Sucks cause my sales and income are wayyy off...Im pretty sure ill get a form for over 200 payments...I constantly buy off eBay and flip right back, thus I may spend $1,000 and resell for $1,200...Than use that 1200 and flip those cards for 1300...Thus I only made 300.00 yet sales are 2500...#@#@#@#@ the tax man

It's 200 payments AND 20k in sales.

Cubs_rock21 · 01-31-2012, 03:32 PM

..............double post

Cubs_rock21 · 01-31-2012, 03:34 PM

Quote:

Originally Posted by jr24ai3

It's 200 payments AND 20k in sales.

i gotcha...It says my sales to date are 46,000 since 2003...with 1274 transactions...I had 212 transactions last year, so im guessing it wont be 20K considering over 1,000 transactions were 2010 and before

VWBUS1978 · 01-31-2012, 03:34 PM

have they already posted these in your paypal?

just curious, i am at $17,000 on eBay and way over 200 transactions, just wondering if they were posted, cause my paypal shows no tax documents for 2011.

Cubs_rock21 · 01-31-2012, 03:41 PM

Quote:

Originally Posted by VWBUS1978

have they already posted these in your paypal?

just curious, i am at $17,000 on eBay and way over 200 transactions, just wondering if they were posted, cause my paypal shows no tax documents for 2011.

everyone got an email claiming that if they get a 1099 form by the end of the month that means they have exceeded 200 trans. and 20K in sales

nuccionino · 01-31-2012, 03:43 PM

Quote:

Originally Posted by jr24ai3

Are you asking if you will get a form?

I did get one

Cubs_rock21 · 01-31-2012, 03:50 PM

Quote:

Originally Posted by nuccionino

I did get one

its not a form, just an email stating that IF you get one at the end of the month than you surpassed 20,000 in sales and 200 payment

Chaddie84 · 01-31-2012, 03:53 PM

I used to buy used items and flip them on eBay for profit. I had my own Tax-ID and was on the up-and-up for 3 years. Since then, I've simmered down and shut down the business. The only stuff I sell is personal items which I am simply getting rid of. My concern is parallel to many others in this thread. Do I honestly need to keep an itemization of all spending on items which I eventually resell for loss? Where is the line? If I seel a bunch of junk at a Garage sale for $500, do I need to report it to the IRS?

DaBaddestHic · 01-31-2012, 04:01 PM

Quote:

Originally Posted by Chaddie84

I used to buy used items and flip them on eBay for profit. I had my own Tax-ID and was on the up-and-up for 3 years. Since then, I've simmered down and shut down the business. The only stuff I sell is personal items which I am simply getting rid of. My concern is parallel to many others in this thread. Do I honestly need to keep an itemization of all spending on items which I eventually resell for loss? Where is the line? If I seel a bunch of junk at a Garage sale for $500, do I need to report it to the IRS?

I think that if you're ONLY selling things at a loss then no, you don't have to report anything. That's why you don't have to report garage sale earnings - you're not actually making any profit selling an old TV for $15 lol.

kevinandji · 01-31-2012, 04:06 PM

Bottom line is they want their money and all income and all unpaid sales tax is supposed to be listed. Do most people report the $1000 they saved in out of state sales tax purchases? Probably not...As with anything else in life...your truth is your truth. Was the couch you wrote off as a donation worth $500 or $100, etc. Since only 1% get audited not too much to stress about. I keep my taxes on point and never had a problem. Many people who take liberty never get caught and when they do the government usually settles for much less than owed. It is one big crap shoot. The Feds better hope I do not start writing off cards because I have been slaughtered this year...Hopefully the 2 cases of Rookie Retro I am awaiting will turn it all around? YEAH RIGHT...

01-31-2012, 01:56 PM	#1
jr24ai3 Member Join Date: Oct 2010 Posts: 3,740	WTF! I only sold $5,000 and got a 1099-k from paypal today Just joking! Thought I'd put a scare into some of you guys out there who have been worrying about the paypal tax forms.

01-31-2012, 02:02 PM	#3
VWBUS1978 Member Join Date: Jul 2011 Location: SOUTH JERSEY Posts: 5,820 Vwbus1978 Vwbus1978	haha, i went and checked... nothing yet. i use a paypal credit card to buy everything i open. except when i am scrapping steel or copper for some cold hard cash. I am sure they take into account 99% of my sales are "hobby" related and at a loss compared to what i spend. If you're buying from an LCS to sell/flip, please keep all of your receipts. I'm no tax professional, but if i can show a loss (even though my collection would put me into a profit) they will not tax loss. Plus! you get to write off all state sales tax. of course, i could be 100% wrong, i am not claming knowledge of anything tax related. __________________ the fact that we exist, in a universe of sheer randomness, is scientific proof that there are aliens. we are the aliens. i can say that with 100% accuracy.

01-31-2012, 02:04 PM	#6
monkeymcgee Member Join Date: Apr 2010 Location: VA Posts: 10,974	Edited: Never mind--not going to give out tax advice when it's not my area of expertise. I will say this: check out IRS publication 535 Last edited by monkeymcgee; 01-31-2012 at 02:20 PM. Reason: Fixing an error and adding info

01-31-2012, 03:34 PM	#19
VWBUS1978 Member Join Date: Jul 2011 Location: SOUTH JERSEY Posts: 5,820 Vwbus1978 Vwbus1978	have they already posted these in your paypal? just curious, i am at $17,000 on eBay and way over 200 transactions, just wondering if they were posted, cause my paypal shows no tax documents for 2011. __________________ the fact that we exist, in a universe of sheer randomness, is scientific proof that there are aliens. we are the aliens. i can say that with 100% accuracy.

01-31-2012, 03:53 PM	#23
Chaddie84 Member Join Date: Jul 2010 Location: Fargo, ND Posts: 8,812 Chaddie84 Chaddie84	I used to buy used items and flip them on eBay for profit. I had my own Tax-ID and was on the up-and-up for 3 years. Since then, I've simmered down and shut down the business. The only stuff I sell is personal items which I am simply getting rid of. My concern is parallel to many others in this thread. Do I honestly need to keep an itemization of all spending on items which I eventually resell for loss? Where is the line? If I seel a bunch of junk at a Garage sale for $500, do I need to report it to the IRS? __________________ SKOL! Go Bison!

01-31-2012, 02:01 PM	#2
guru Member Join Date: Jul 2007 Location: USA Posts: 22,194 $guru$ guru	Yep, if you made 200+ sales you will get one no matter what the total amount is.

01-31-2012, 02:03 PM	#4
jr24ai3 Member Join Date: Oct 2010 Posts: 3,740	If you are getting one, you should have received an email yesterday from paypal stating that they are sending out forms by the end of the month.

01-31-2012, 02:05 PM	#7
pac213up Member Join Date: Aug 2007 Posts: 8,195	With or without the 1099 people should be reporting their income. I have a feeling those walking the thin line are going to pay for it down the road.

01-31-2012, 02:25 PM	#11
DaveTaplin Member Join Date: Aug 2010 Location: Rockland, Me Posts: 1,462	I sold mostly games and toys. Sales were 25K plus 11K in shipping, 1099K says 36K. A lot of people are going have to spend a lot of time removing all the deductions.

01-31-2012, 02:34 PM	#12
nuccionino Banned Join Date: Apr 2011 Location: Michigan Posts: 8,783 nuccionino	I didn't make 10000 in sales and I got a form?

01-31-2012, 03:21 PM	#14
Cubs_rock21 Member Join Date: Dec 2010 Location: Indiana Posts: 9,751	Sucks cause my sales and income are wayyy off...Im pretty sure ill get a form for over 200 payments...I constantly buy off eBay and flip right back, thus I may spend $1,000 and resell for $1,200...Than use that 1200 and flip those cards for 1300...Thus I only made 300.00 yet sales are 2500...#@#@#@#@ the tax man

01-31-2012, 03:32 PM	#17
Cubs_rock21 Member Join Date: Dec 2010 Location: Indiana Posts: 9,751	..............double post

01-31-2012, 04:06 PM	#25
kevinandji Member Join Date: Dec 2011 Location: USA Posts: 1,652	irs... Bottom line is they want their money and all income and all unpaid sales tax is supposed to be listed. Do most people report the $1000 they saved in out of state sales tax purchases? Probably not...As with anything else in life...your truth is your truth. Was the couch you wrote off as a donation worth $500 or $100, etc. Since only 1% get audited not too much to stress about. I keep my taxes on point and never had a problem. Many people who take liberty never get caught and when they do the government usually settles for much less than owed. It is one big crap shoot. The Feds better hope I do not start writing off cards because I have been slaughtered this year...Hopefully the 2 cases of Rookie Retro I am awaiting will turn it all around? YEAH RIGHT...