paypal tax form

[mma138]

so I got my 1099 for the first time today . I normaly do my taxes on my own but feel more comfortable having a pro do it this time since I got a 1099 from paypal .

quick question , if I can provide all hobby receipts and paypal transactions showing that I didn't make any profit this should help me on my return correct ?


I buy quite a bit , but im not solely a ripper and flipper , I keep a lot of what I bust . and sell some .

sometimes I buy multiple cases of a product and sell some of the cases later on down the line and actualy lose some money ..... so I don't make much profit .

[chezball]

Originally Posted by mma138

so I got my 1099 for the first time today . I normaly do my taxes on my own but feel more comfortable having a pro do it this time since I got a 1099 from paypal .

quick question , if I can provide all hobby receipts and paypal transactions showing that I didn't make any profit this should help me on my return correct ?


I buy quite a bit , but im not solely a ripper and flipper , I keep a lot of what I bust . and sell some .

sometimes I buy multiple cases of a product and sell some of the cases later on down the line and actualy lose some money ..... so I don't make much profit .

Just asking,did you hit the 200/$20,000 threshold?

[shrevecity]

Pull your monthly Paypal reports and look at what you have paid in shipping fees, Paypal fees and Ebay fees. Yes any of those recepts should be usable.

Also from now on since once you get one you are subject to get one even if you don't hit the numbers in the future start keeping track of mileage you use going to and from the PO, if you travel to buy merchandise that can count as well, I claim mileage on going to thrift stores.

[mma138]

Originally Posted by chezball

Just asking,did you hit the 200/$20,000 threshold?

I did

[mma138]

Originally Posted by shrevecity

Pull your monthly Paypal reports and look at what you have paid in shipping fees, Paypal fees and Ebay fees. Yes any of those recepts should be usable.

Also from now on since once you get one you are subject to get one even if you don't hit the numbers in the future start keeping track of mileage you use going to and from the PO, if you travel to buy merchandise that can count as well, I claim mileage on going to thrift stores.

thanks good advice

[mma138]

I can also submit all my shipping receipts from the post office ?

how will the irs acknowledge that those shipping receipts were related to my ebay transactions ?

[shrevecity]

Originally Posted by mma138

I can also submit all my shipping receipts from the post office ?

how will the irs acknowledge that those shipping receipts were related to my ebay transactions ?

They really don't have no way of knowing some things. The key is having good records. That is why I try to use Paypal as much as possible for everything.

You won't have to actually submit anything to the IRS but the numbers, only time you have to show them the actual receipts would be in an audit.

[mma138]

but I should still bring all these things to my tax person.

hobby receipts , paypal receipts related to those hobby receipts , usps shipping receipts

then if the irs isn't hapy with what my tax guy submitted I may be audited ? and then have to submit all that stuff to them ?

[Andrew Jones]

I wouldn't get tax advice from this forum. The basketball forum on the other hand . . .

[marino13]

1. Download the paypal statement - it should have all the fees attached.

2. Download your shipping fees with the USPS - hopefully you paid with paypal (if not, there will be a lot of digging for receipts on your part)

3. They should already excell-format ready --- now just get the cost for each sold item and get the net amount.


The rest should be really straight forward.

[gatordeve86]

Is there somewhere on PayPal to download the 1099? Not sure if I'm getting one in the mail or not, I hit the 200/20,000 for sure but I read they don't count Friends and Family in that limit so I don't want to waste time waiting for one if I'm not getting one and if I can download it

[mma138]

guys I know I shouldn't rely on info given here , I will see a reputable tax person . im just trying to get some general info before I see him .

and yes you should get a 1099 form in the mail . my email states that .

[mma138]

also got a notice that I will be getting a 1099 for my other account . separate email . but I only got a total of 103 bucks from that one ? weird

[mma138]

so if I can prove I made no money I wont be hurt by selling correct ? I may even gain ? on my return ?

I also kept receipts for my shipping supplies

[bd3d86]

I am also going to see my tax person in February. This is the first year I have ever been over $20,000 in sales. I have spoken to a couple other guys that have been 1099'd before. They told me to figure out the following:

Purchase Totals
eBay fees
Paypal fees
Shipping fees
Refunds
Gas (to/from Post Office)
Ink/Paper (for shipping)
Supplies

One guy even told me to write off my trip to the National last year, but I am going to ask about that to be sure.

I printed my monthly Paypal statements and that should have most of the info. My only difference is that my ebay fees are paid by my credit card, so I just had to go month by month and add them up.

[Rmeyers]

Originally Posted by mma138

so if I can prove I made no money I wont be hurt by selling correct ? I may even gain ? on my return ?

I also kept receipts for my shipping supplies

If you are a business and trying to prove you made no money, then you are not a business.

That makes you a hobbiest.

If you are a hobbiest there is a chance you could owe some extra money because of this.

Not sure what you think you are going to gain???

[Jackg1980]

Originally Posted by Rmeyers

If you are a business and trying to prove you made no money, then you are not a business.

That makes you a hobbiest.

If you are a hobbiest there is a chance you could owe some extra money because of this.

Not sure what you think you are going to gain???

Huh? Many businesses lose money. Especially if a business only net 20k a year.

[coltsnsox07]

I'm in the minority here but I use HR Block( many say they're too expensive but I'm more comfortable using them), my tax guy goes through each line on the form asking what each amount is, I don't have to whip out a big pile of receipts to show him I've already done the math, and the cost of goods sold goes way down and the pain is eased!

[Rmeyers]

Originally Posted by Jackg1980

Huh? Many businesses lose money. Especially if a business only net 20k a year.

Yea, didnt come out right. My observance here is that most people are shocked that they will receive a 1099k, and then are trying to scramble to come up with anything they can deduct to show a loss. That mentality doesn't sound like they are trying to running things like a business.

[sonnyday]

Originally Posted by coltsnsox07

I'm in the minority here but I use HR Block( many say they're too expensive but I'm more comfortable using them), my tax guy goes through each line on the form asking what each amount is, I don't have to whip out a big pile of receipts to show him I've already done the math, and the cost of goods sold goes way down and the pain is eased!

HR Block could be the worst tax preparing service in the history of man kind.

[cruiserdaddy7]

Originally Posted by Rmeyers

Yea, didnt come out right. My observance here is that most people are shocked that they will receive a 1099k, and then are trying to scramble to come up with anything they can deduct to show a loss. That mentality doesn't sound like they are trying to running things like a business.

It simply shows they are trying to reduce their tax burden by deducting all appropriate expenses from their sales.

[Rmeyers]

Originally Posted by cruiserdaddy7

It simply shows they are trying to reduce their tax burden by deducting all appropriate expenses from their sales.

No, it shows this forum is full of a bunch of morons who hope they don't get "1099'd" this year. If you are doing things right to begin with you don't need to see a 1099 to know how much money you made. If you are doing things right you don't need to receive a 1099 to know that you have to claim that Paypal money as income.

[brandonlec]

How do you access all the $$ you spent on USPS PayPal shipping?
Should we download the email receipt every time we send something?

[Rmeyers]

Originally Posted by brandonlec

How do you access all the $$ you spent on USPS PayPal shipping?
Should we download the email receipt every time we send something?

Download your paypal history for each month in Excel format. This will show everything. Money received, payments to USPS, payments to ebay, money refunded....everything.

[Jackg1980]

Originally Posted by Rmeyers

No, it shows this forum is full of a bunch of morons who hope they don't get "1099'd" this year. If you are doing things right to begin with you don't need to see a 1099 to know how much money you made. If you are doing things right you don't need to receive a 1099 to know that you have to claim that Paypal money as income.

You are the first to name call. What does that make you?