Now that PayPal reports everything to the IRS, does that mean we should be collecting tax on shipments within our respective state? Will the IRS expect us to pay taxes on these payments? I'm concerned that I'll owe back taxes on sales. I've seen eBay sellers adding tax to their sales now.
PayPal Payments and the IRS
- Thread starter TstebinsB
- Start date
From what I can tell the new tax laws are meant to only apply to merchants- i.e., large volumes sales >$20k/yr gross AND over 200 transactions. So, unless you have a MASSIVE den clear out you should be OK (but if you do, call me first 
). Here's PayPal's take on it:
https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W
). Here's PayPal's take on it:https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W
https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W
$20,000/year or >200 payments = PayPal requires you to give them your tax ID
$20,000/year or >200 payments = PayPal requires you to give them your tax ID
- Thread starter
- #5
I have over paid the IRS $12,562 over 4 years(they admitted to "winning"). I have also circumvented the system for a certain amount of money. The IRS is an oddity and some what criminals in todays society. They put the phrase "double-dipping" to shame. They will tax the same dollar earned an infinity amount of times even though you only invested that 1 dollar once. Shame on them. If anyone ever earns monetary income in a cash form I would strongly advise in possibly not claiming that as income. yes I dislike the IRS quite a bit and they have screwed me out of many of dolllars. Middle class and self employed just sucks I guess.
Austrian economics is on your side, but it's powerless to help...
maybe go back to the days of old when ebay was young and there was no Paypal papertrail.
Most transactions (even international) was conducted with postal money orders.
Good as gold,not much differant than cash.
Most transactions (even international) was conducted with postal money orders.
Good as gold,not much differant than cash.
I'm pretty sure that my wet-shaving hobby operates at a net loss, as I'm sure many members do.
Let's say I buy a razor for $50, don't like it, and sell it for $40 shipped. After shipping expenses, I've recovered $35 of my original $50 investment, or you could say that I've lost $15.
I don't think the IRS is the least bit concerned if we lose money. In any case, the miniscule volume of private BST transactions isn't worth their while to look into.
Let's say I buy a razor for $50, don't like it, and sell it for $40 shipped. After shipping expenses, I've recovered $35 of my original $50 investment, or you could say that I've lost $15.
I don't think the IRS is the least bit concerned if we lose money. In any case, the miniscule volume of private BST transactions isn't worth their while to look into.
Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
garyg
B&B membership has its percs
Seems as if they wanted to count the sales of razors etc as income, then they'd be forced to allow for purchases of same. Most here would get a massive tax write-off ..
Please note that in California in order to collect sales tax a seller must be engaged in a retail sales environment, and must possess a resellers license issued by the California Franchise Tax Board. Unless you are a retail seller, who should not be selling on the BST, then you do not need to charge sales tax....and if you do charge sales tax...expect to be reported to the Franchise Tax Board...because I doubt that any of you are retail sellers.
The reason that PayPal now reports to the IRS is to "help" the IRS track power sellers and to enforce the income tax laws. I doubt that they are worried about the little fish and want to look at the $ Million Plus sellers on sites such as Ebay who are selling for profit.
The reason that PayPal now reports to the IRS is to "help" the IRS track power sellers and to enforce the income tax laws. I doubt that they are worried about the little fish and want to look at the $ Million Plus sellers on sites such as Ebay who are selling for profit.
the irs is a load of wannabe hard guy's,a good tax lawyer and they cant touch you;
C.P.A.=can't prove anything..
unless you have a store /commercial enterprise,its hard for them to justify the expense of chaseing you down.if you are a commercial entity,you should have a cpa on speed dial.
C.P.A.=can't prove anything..
unless you have a store /commercial enterprise,its hard for them to justify the expense of chaseing you down.if you are a commercial entity,you should have a cpa on speed dial.
Much of this is so the IRS can weed out those operating at the volume of a commercial entity while still claiming this is just a hobby......much like they way most of the wet shaving boards decide if you belong on the BST vs. Vendor threads. If you are buying or making to resell on a regular basis then you are a vendor/business, should be collecting sales tax (have a business license or whatever your state requires) and should be claiming the income.
If you are occasionally selling from your collection, cleaning out the garage or spare room, etc....it is a hobby or one time deal.
I am not a tax lawyer nor do I play one on TV.
Tony
If you are occasionally selling from your collection, cleaning out the garage or spare room, etc....it is a hobby or one time deal.
I am not a tax lawyer nor do I play one on TV.
Tony
