[FSOT] New Paypal persona payment alert

[bretttallen]

Not yet lol.....
http://outright.com/blog/paypal-and-amazon-1099-how-do-i-know-if-i’ve-hit-the-limit/
This was early year. May change this year tho

 

[bretttallen]

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

Last post on the subject.....just trying to help

 

[Fishy]

it was good run, and honestly all Paypal has to do is remove the ability to send money as a gift, that is their right, they do own the service. It's kind of like saying you should have free speach on a forum owned by someone else or on a FB group. It's someone else's property to do with as they wish, if you want to send money fee free start your own system, and let us know how that works out for you.

 

[Elderberen]

we cane go back to using cash and checks snail mail

 

[pmatt1969]

paypal fees

Paypal makes a killing as it is. So does ebay. They have started trying to control what you charge for shipping too. They are making plenty of money. By the way, all the Government does by trying to tax the internet is screw it up. They need to stay out of it.

 

[Elderberen]

and i have 207 transactions so i will have some taxes to pay.

 

[OSUDSCGOLF1]

You need to have both, over 200 transactions and 20k in one calendar year. You should be fine.

 

[Elderberen]

Tru that

 

[MN_DiscGolfer]

gotta love those sticky fingers of the gov...
next thing you know we're gonna get taxed when gettin paid on a 51 metal hit. "heres yur $1"..."this is $0.72"..."taxes man, taxes."

 

[jenb]

I'm no tax expert, but I thought a person sending money as gift, even for a purchase, was accepting the responsibility to pay the gift tax on that amount. Wouldn't the IRS have to go after the buyers who buy a lot of stuff and pay as gift?

 

[jenb]

How do they know the gifts were payments for merchandise? Are people putting it in the notes or something?

Just a guess, but if a dispute arises over the sale on ebay, or if feedback on ebay matches up with a personal payment in the amount reflected, that would seem to be a pretty big clue.

 

[jmitch]

How do they know the gifts were payments for merchandise? Are people putting it in the notes or something?

YES! their are morons on this site that love to put their mailing address or
"thanks for the disc" in the payment note. Not only that but they even do it after I specifically ask them not to do it.

 

[jenb]

I'm no tax expert, but I thought a person sending money as gift, even for a purchase, was accepting the responsibility to pay the gift tax on that amount. Wouldn't the IRS have to go after the buyers who buy a lot of stuff and pay as gift?

Now that I think about it, if feebaypal is matching up transactions to personal payments, then the IRS could subpoena all those records and figure out how many gifts you shipped (because you didn't receive payment from purchasers; you exchanged gifts). Under that scenario, they might use the amount of "sale" as evidence of the fair market value of the gifted item and charge you the gift tax on it. IDK for sure, but I think you can't even deduct business expenses in that case, so you might wind up owing more in taxes than if you had not received the payment as a gift. If the feebaypal records go back years, they could bring charges for evasion. :-( I wonder if we will see some examples made in the near future? Hmmm ... I wonder what that will do to feebaypal stock ...

This is not legal advice. I am not your lawyer.

 

[jmitch]

Now that I think about it, if feebaypal is matching up transactions to personal payments, then the IRS could subpoena all those records and figure out how many gifts you shipped (because you didn't receive payment from purchasers; you exchanged gifts). Under that scenario, they might use the amount of "sale" as evidence of the fair market value of the gifted item and charge you the gift tax on it. IDK for sure, but I think you can't even deduct business expenses in that case, so you might wind up owing more in taxes than if you had not received the payment as a gift. If the feebaypal records go back years, they could bring charges for evasion. :-( I wonder if we will see some examples made in the near future? Hmmm ... I wonder what that will do to feebaypal stock ...

This is not legal advice. I am not your lawyer.

Are you saying that you know people that ask buyers on ebay to only send payment via the gift option?