PayPal warning?

[WeatherBugHiker]

PayPal's always a headache to use

 

[Deputy819]

If you use PayPal your gonna pay the IRS NEXT YEAR!!!!!

Not on the F&F side, I checked on that. Only on the goods and services

I've NEVER made a single penny from any of my seller transactions here. My 'losses' have been at least 20% or more depending on the item(s) so there is no 'Capital Gain' to report. Sale proceeds from personal items (taken at a loss) are not taxable or deductible.

 

[softtail103]

I've NEVER made a single penny from any of my seller transactions here. My 'losses' have been at least 20% or more depending on the item(s) so there is no 'Capital Gain' to report. Sale proceeds from personal items (taken at a loss) are not taxable or deductible.

Finally someone gets it! Taxes are for net profit only. It does not matter which you one you use. You have full control over the value of your sale. As alway FEAR and IGNORANCE come into play with anything the government says to the undereducated.

 

[WYOHTF]

I have a business account with PayPal.
Only use it 4-5 times a year.
Had funds sent for services to my account on Friday afternoon, they just became available today.

I read on another forum that a lawsuit is underway. A huge one.

 

[milo-2]

Finally someone gets it! Taxes are for net profit only. It does not matter which you one you use. You have full control over the value of your sale. As alway FEAR and IGNORANCE come into play with anything the government says to the undereducated.

Right, but if the IRS pushes the issue, as always, the burden of proof will be on you. I sometimes grab operator's manuals, most of the time the receipt is in the trash within a day.
It will be on each of us individually to decide if the perceived hassle will be worth it.

 

[softtail103]

Right, but if the IRS pushes the issue, as always, the burden of proof will be on you. I sometimes grab operator's manuals, most of the time the receipt is in the trash within a day.
It will be on each of us individually to decide if the perceived hassle will be worth it.

Thank you for helping push your FEAR of the IRS. Rough numbers. You sell your rifle for $1400.00, you paid $1200.00. Net profit $200.00. Assume you are at the average American tax payer 13.29%. $200.00 x 13.29%= $16.58. Is this that much of a hassle? You would be one of the rare people who makes a profit selling your personal guns. Correction on your 'the burden of proof is on the tax payer" not correct. The IRS must determine that the value you placed on your sale is beyond the current market value. You can not write off your loss on a hobby. In short you have to make a net profit on what you sell. If this is the case maybe you should open a legitimate business and pay your taxes.

 

[milo-2]

Thank you for helping push your FEAR of the IRS. Rough numbers. You sell your rifle for $1400.00, you paid $1200.00. Net profit $200.00. Assume you are at the average American tax payer 13.29%. $200.00 x 13.29%= $16.58. Is this that much of a hassle? You would be one of the rare people who makes a profit selling your personal guns. Correction on your 'the burden of proof is on the tax payer" not correct. The IRS must determine that the value you placed on your sale is beyond the current market value. You can not write off your loss on a hobby. In short you have to make a net profit on what you sell. If this is the case maybe you should open a legitimate business and pay your taxes.

I have never had any interaction personally with the IRS, so thanks for the clarification. I just browsed my 2020 PP history, I could not tell what I sold, or what I purchased, not a note one in any transaction. Is that poor record keeping, or normal activity for most using PP as a money transfer system? So now, if I exceed the dollar limit of money coming in, and both the IRS and myself get a 1099 and a flag goes up. That 1099 is not going to state "sale of these listed items" sold, so if the IRS contacts me, I am now involved, and now I may have to prove what I actually sold. Whether in the right, or the wrong, who cares, it is now time I could have spent elsewhere.

I have no fear of the IRS, I have no reason to, that does not mean I desire to somehow, for some reason, need to get personal with them. Probably like 95% of the people who comment on this very topic. IMO, most who have issue with it, have probably been looking at alternatives to using PP as a means of exchanging funds, their antigun policies are clearly stated, yet we like to play with the system.
Honestly, I have tried to live my adult like w/o ever having direct contact with not only the IRS, but the FBI, BATFE, and Homeland security, not fear, just logical.
As for making a profit on resale items, I'm no different than anyone posting, prospering seems to be a myth.

 

[softtail103]

You can add your calculation to you tax return showing that you paid taxes on your net profit from the sale. I have had the displeasure of a audit. It is their responsibility to prove that you are not paying your taxes correctly. Only give them what they ask for. Volunteer nothing. 11 hours of total audit time. My net payment for a 3 year period of the audit was $966.13. This is a body shop company with 3 shops and 7 million in revenue. Any person or business will fail most audits. The $966.13 pertained to a company that I hired to pressure wash the parking lots that didn't have a business license. They ruled that the payment could not be written off and there for considered it unreported income for me. Just don't try to write off they loss on the gun. This turns into a red flag for the Hobbie rule.