Welcome to the updated Slickdeals redesign beta. Learn more and give us feedback. Or, return to the classic view.

Search in
Forum Thread

Paypal Reporting Income to IRS with 1099-K. eBay Sales Over $20,000 AND Sold Over 200 Items

blackblaze 3,222 February 2, 2012 at 07:18 AM
Deal
Score
+4
156,574 Views

Thread Details

I was reading this article this morning and posted it in another thread regarding 1099-K

http://www.forbes.com/sites/kelly...taxpayers/

I know there are a lot of folks here who buy and sell (using Paypal to receive payments) based on slickdeals they come across. Some folks for profit, some folks, to get their item for free (buy 4, sell 3, get their slickdeal item free). I've been able to get some great deals going the route of buying a few extra and getting the item for free. However, with so many great slickdeals throughout the year and selling, for some, you may have cross the threshold of now receiving a 1099-K from Paypal ($20K gross received and 200 transactions) that is also reported to the IRS

http://www.irs.gov/instructions/i1099k/ar02.html

So, how does one handle this. Some questions that come to mind:

1. What distinguishes hobby seller from small business?
2. Reported amount is gross, not net, where is clarity to show just net income?
3. If you receive this form, and somehow show a result of net income, can you claim expenses, itemized deduction (mileage to acquire items, etc, etc.)?
4. Since this is new, how well are tax accountants prepared to help tax preparers to navigate this new form?
5. Should you create a new Paypal/Ebay account to account for selling personal items/friends items, etc vs items strictly for resale?

Wanted to open it up for discussion. Cool2

256 Comments

14 15 16 17 18

Sign up for a Slickdeals account to remove this ad.

#256
Quote from HarryF2229 View Post :
Open a new ebay account with a different bank account, a bank account opened under your, say daughters name, establish sales under this ebay name, have online access to the bank acct. and the pay pal account under daughters name, when needing money from pay pal have check sent to daughter and she signs it over to you, good for up to 19,999.00
That's what I was going to do, but as I explained Paypal *says* they'll figure it out based on the items you sell under each account & then they'll just combine the two and issue a 1099. Whether they actually do that or not, I don't know…but that's what they claimed when I called. I just pull all my ads off eBay when I get close to $20k and then relist everything on Jan 1st.
Reply Helpful Comment? 0 0
#257
Do you guys know if the limit with paypal/ebay is $20,000 or 200 items or is the limit $20,000 and 200 items to go over? I've been wondering this for awhile.
Reply Helpful Comment? 0 0
Page 18 of 18
14 15 16 17 18
Join the Conversation
Add a Comment
 
Slickdeals Price Tracker
Saving money just got easier.
Start Tracking Today
Copyright 1999 - 2015. Slickdeals, LLC. All Rights Reserved. Copyright / DMCA Notice  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)