Warning to all sellers!

[SEGARE]

New U.S. Tax Reporting Requirements: Your Questions Answered

How these new tax reporting changes may impact you when paying or accepting payments with PayPal and Venmo for goods and services.

newsroom.paypal-corp.com

 

[southpa]

Dont mean to hijack but how are we supposed to feel comfortable sending money orders which are as good as cash, or checks for large sums of money when there is no way if insuring those funds. I think this forum is full of wonderful people who help out in numerous ways but we are mostly all strangers. Can someone help me out with the logistics of that?

 

[JAYgs8163]

Read the wording in the bill, currently some of these are only "proposals" as stated on the PayPal link above. I believe it was only approved in the house but not in the senate.

 

[codyadams]

Dont mean to hijack but how are we supposed to feel comfortable sending money orders which are as good as cash, or checks for large sums of money when there is no way if insuring those funds. I think this forum is full of wonderful people who help out in numerous ways but we are mostly all strangers. Can someone help me out with the logistics of that?

That is a hard one, because to my knowledge, once you send it off, that money order is gone, and you gotta just hope the person selling is a strait shooter. Just had a guy send $1750 for a scope in the form of usps money order, I'm glad I have a good name on here, otherwise I wouldn't expect anyone to do that. I personally would be very leery about doing that with new members, or actually anyone that isn't well known on here and generally shows a good moral compass in their posts

 

[L.Sherm]

I refuse to do any electronic payments, twice my bank info was hacked from PayPal since I stopped any electronic banking ive not had a problem.
Hell I even had my bank info hacked once from the local hospital.
Once you send money off through PayPal for a gun item if you got a unscrupulous buyer no recourse its exactly why on accurateshooter you use electronic you get kicked off. I pay Len with a check for my membership, ask Steve from Hammer bullets about paypal.
All the scammers want electronic payment for a reason.

 

[akmtnhnt]

Back to money orders...

I sold a gun this year and was paid via money order. They were stolen either at the post office or out of my mailbox. We looked into it when it was like 3 weeks later and they hadn't arrived. The total sale was for like $1060 or something and the max you can write a money order for is 1k. So it was two. The lady that stole them was successful in cashing the $60 one, but not the $1000. Presumably because someone didn't ask for ID on the $60 but everyone did for the $1k.
She crossed out my name as the payee on the $60 one, wrote hers and wrote in her address over top of mine. Some moron at the post office still cashed it for her.
So now we have a name, address and a time stamp of when it was cashed. I contact the postal inspector, there's even video footage of her cashing it.
What do they do?

Nothing. They even say they can't cancel the one that is known to be stolen so it can't be cashed. Just have to wait x amount of time and hope it's not.

So money orders are the opposite of secure. I'd rather do a personal check and wait a week for it to clear. At least a bank will actually take care of fraud.

 

[akmtnhnt]

Something to note regarding reporting gains on stuff you sell, if you have any losses vs what you paid on stuff you sell, that'd all be deducted.

 

[DoneNOut]

Read the wording in the bill, currently these are only "proposals" as stated on the PayPal link above. I believe it was only approved in the house but not in the senate.

I'm trying my best to understand: (According to the PayPal Article)

Q: Why is this happening now?
The 1099-K reporting requirement was part of the American Rescue Plan Act of 2021 passed earlier this year by Congress and signed into law by the President. The effective date for these new changes is January 1, 2022.

When do these changes come into effect?
The 1099-K change will take effect January 1, 2022. PayPal and Venmo will be required to provide customers with a 1099-K form if they receive $600 or more in goods and services transactions during the 2022 tax year.

Then the article says this:

"This means you will need to take into account the Threshold Change with your Tax Year 2022 filings. The In-flow and Out-flow change has not been considered by Congress yet and therefore doesn't have an effective date."

SO, what is this In-flow/Out-flow component?

 

[softtail103]

I sold a gun this year and was paid via money order. They were stolen either at the post office or out of my mailbox. We looked into it when it was like 3 weeks later and they hadn't arrived. The total sale was for like $1060 or something and the max you can write a money order for is 1k. So it was two. The lady that stole them was successful in cashing the $60 one, but not the $1000. Presumably because someone didn't ask for ID on the $60 but everyone did for the $1k.
She crossed out my name as the payee on the $60 one, wrote hers and wrote in her address over top of mine. Some moron at the post office still cashed it for her.
So now we have a name, address and a time stamp of when it was cashed. I contact the postal inspector, there's even video footage of her cashing it.
What do they do?

Nothing. They even say they can't cancel the one that is known to be stolen so it can't be cashed. Just have to wait x amount of time and hope it's not.

So money orders are the opposite of secure. I'd rather do a personal check and wait a week for it to clear. At least a bank will actually take care of fraud.

Or just pay the 8 bucks for priority mail then you get a signature. If you let people steal from you they will. When people choose not to spend the little extra to protect themselve, you are setting your self up for failure.

 

[L.Sherm]

Something to note regarding reporting gains on stuff you sell, if you have any losses vs what you paid on stuff you sell, that'd all be deducted.

I think that's only for a business

 

[softtail103]

I'm trying my best to understand: (According to the PayPal Article)

Q: Why is this happening now?
The 1099-K reporting requirement was part of the American Rescue Plan Act of 2021 passed earlier this year by Congress and signed into law by the President. The effective date for these new changes is January 1, 2022.

When do these changes come into effect?
The 1099-K change will take effect January 1, 2022. PayPal and Venmo will be required to provide customers with a 1099-K form if they receive $600 or more in goods and services transactions during the 2022 tax year.

Then the article says this:

"This means you will need to take into account the Threshold Change with your Tax Year 2022 filings. The In-flow and Out-flow change has not been considered by Congress yet and therefore doesn't have an effective date."

SO, what is this In-flow/Out-flow component?

In-Out flow in where they are just the transfer vehicle. This is the same law that is used by auctions. The IRS can not tax the money that flows through when it does not belong to the transfer company. This is a pass through that is exempt from taxation.

 

[softtail103]

I think that's only for a business

The deductions you are talking about are for businesses only. If I paid $15,000 for a inventory then sold it for $11,000 then I can write off the loss. If you personally lost money on a gun purchase then sale it's on you. Remember the laws are to benefit the wealthy and large businesses. Small businesses are still just a ATM for the state and fed's to take what they want.

 

[L.Sherm]

Exactly what I was pointing out

 

[DoneNOut]

In-Out flow in where they are just the transfer vehicle. This is the same law that is used by auctions. The IRS can not tax the money that flows through when it does not belong to the transfer company. This is a pass through that is exempt from taxation.

So, Gunbroker isn't/wouldn't be required to report your sale?