Paypal is now sending out 1099s after you pass $600 sales

[JAYgs8163]

Is venmo sending 1099s?

I imagine if you use it as a business they are or if you use it for "goods and services".

 

[glock24]

I guess those good 'ol USPS Money Orders are gonna come back into style . . .

Or don't worry about it and sleep well at night. These changes were implemented as part of the American Rescue Plan Act of 2021. I feel better already.

 

[kdrogers71775]

They just lookin' out for us.......

 

[Varmint Hunter]

I used to use paypal. I have tried to migrate away from it to venmo. For a business, I would definitely stay away from it but for general classifieds it should be pretty easy to avoid paying taxes. As 2nd hand selling of items generally never get sold for profit in this industry.

If called to task, how do you prove what is profit or loss on secondhand items? This all sounds like a taxation nightmare to me. Glad I gave up my PayPal account several years ago.

 

[southpa]

If called to task, how do you prove what is profit or loss on secondhand items? This all sounds like a taxation nightmare to me. Glad I gave up my PayPal account several years ago.

Receipts that show how much you paid vs how much you sold items for.
I think martinakl and krdogers explained it pretty well.
The name of the game has always been to prove you are at a loss. This is nothing new.

 

[kdrogers71775]

I was wondering the same thing. And honestly.....they probably dont care. They know there will be alot of folks that will just let it ride and at the end of the year they will get completly raped finacially and the goverment will make so many millions of dollars off other peoples complacancey that they could care less about the process of it all. Feeding the government cash cow.......as usual.

 

[glock24]

If called to task, how do you prove what is profit or loss on secondhand items? This all sounds like a taxation nightmare to me. Glad I gave up my PayPal account several years ago.

Agreed. Not to mention these handlers have every incentive to label as many transactions as possible for business purposes. That way they can also tack on their extra 3% service fee. You know, for "buyer protection"

Venmo actually uses an old couch as an example . . .

3. What makes a payment goods and services?

When sending money on Venmo, users can choose to tag a payment as being for "goods and services".

Whether it's for a product you sell, a service you provide, or even an old couch you don't want anymore, the person paying for the item or service can decide whether to tag the payment. All payments sent to business profiles on Venmo are tagged as purchases automatically and are therefore considered to be for goods and services.

This helps create a safer marketplace by making both the buyer and the seller eligible for Purchase Protection if something goes wrong on either side.

 

[kdrogers71775]

More evil has been done in the name of protecting us than has ever been done in the open as blatant evil.........

 

[Varmint Hunter]

Receipts that show how much you paid vs how much you sold items for.
I think martinakl and krdogers explained it pretty well.
The name of the game has always been to prove you are at a loss. This is nothing new.

Receipts only indicate what the item sold for new. Selling a used item which could be relatively new or could be an old piece of junk would greatly affect its value at the time of sale. That's what would be hard to prove. And what happens when you have sold 25 used items in a year; do you need to verify all of their values and sale prices to determine if you made a profit or suffered a loss? Like I said, "it sounds like a nightmare".

 

[JAYgs8163]

A lot of what PayPal is doing is a crack down on AML also. It's been a known way for people to launder money.

Don't think for a minute that if you have a bunch of cash, money orders, cashiers checks going into your bank account that they (your bank) don't report it. They don't send you a 1099 but they do file SARs and when they do, they don't tell you.

 

[southpa]

Receipts only indicate what the item sold for new. Selling a used item which could be relatively new or could be an old piece of junk would great affect its value at the time of sale. That's what would be hard to prove. And what happens when you have sold 25 used items in a year; do you need to verify all of their values and sale prices to determine if you made a profit or suffered a loss? Like I said, "it sounds like a nightmare".

Agreed, but it seems pretty easy to prove what an item is worth new. The problem I see is that most people want discrete transactions with no description of the parts sold. This makes it dually as hard to prove the worth of an item when there is no description of what was transferred. This is partly due to rules governing the sales of firearms related items by PayPal but I do see your point. Which is why it is a "nightmare" for some.

 

[Gary in MD]

Won't use the "Anti gun pay pal"
I also was told by the bank that money orders are easily forged these days.
I've gone to just asking for a personal check from the man that I'm doing business with, and then only if he's been around a while with good feedback. Obviously holding back shipment until the check clears. Pretty safe then, I think.

 

[Pdyson]

I used to use paypal. I have tried to migrate away from it to venmo. For a business, I would definitely stay away from it but for general classifieds it should be pretty easy to avoid paying taxes. As 2nd hand selling of items generally never get sold for profit in this industry.

PayPal bought Venmo in 2013

 

[Brijake]

There is Zelle that does same thing but owned by the below.

• Seven major U.S. banks own Early Warning Services: Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.