WTF! I only sold $5,000 and got a 1099-k from paypal today - Page 2

12bizzles · 01-31-2012, 04:07 PM

Quote:

Originally Posted by jr24ai3

It's 200 payments AND 20k in sales.

Rules the same for 2012?

burke23 · 01-31-2012, 04:10 PM

What messes me on this stuff is trading loss/gain. I will be consigning more stuff this year to avoid this headache, although trying to do better by tracking everything in a db, but how do you 'prove' cash purposes or gain/loss in inventory value via trading?

jr24ai3 · 01-31-2012, 04:15 PM

Quote:

Originally Posted by 12bizzles

Rules the same for 2012?

They have not officially announced anything for 2012. You would assume it stays the same. I have heard that they are considering sending 1099s to everyone in 2012, but I doubt that will happen.

nuccionino · 01-31-2012, 04:21 PM

So if someone spends $4000 a month to flip for $1000 profit a month, they make $60,000 in sales but spent $48,000... how does that work?

phil · 01-31-2012, 04:25 PM

Quote:

Originally Posted by imnotded

A flat tax would fix this issue!

the issue is people not reporting income, so no it wouldn't.

Dobber2330 · 01-31-2012, 04:25 PM

Quote:

Originally Posted by nuccionino

So if someone spends $4000 a month to flip for $1000 profit a month, they make $60,000 in sales but spent $48,000... how does that work?

You would owe taxes on the 12,000 that you made - but you have to be able to show all of your expenses.

BoxBreaker72 · 01-31-2012, 04:29 PM

This is a complete joke to begin with. What if you spent 60k and only made 40k? Do they own YOU money? Lets say you opened nothing but cases and took huge loses, how does that work? Thank god I was well under 200 total transactions. If I made money, it wasn't much, this is a HOBBY, not a business, I may have lost a grand or two, but I don't care because this is a hobby for me and I like breaking product.

nuccionino · 01-31-2012, 04:31 PM

Quote:

Originally Posted by Dobber2330

You would owe taxes on the 12,000 that you made - but you have to be able to show all of your expenses.

But paypal says 200 sales and 20K? Is that 20K made or 20K overall?

cruiserdaddy7 · 01-31-2012, 04:32 PM

Quote:

Originally Posted by guru

Yep, if you made 200+ sales you will get one no matter what the total amount is.

VERY false information. This has been discussed at length and has been confirmed you need BOTH 200 transactions and $20,000 in sales. Why the OP would even post this crap is beyond me. Trying to scare people? Now this will come up in google searches and so on and shed more eyes onto the money made in this industry etc. Nice move, and very pointless.

cruiserdaddy7 · 01-31-2012, 04:33 PM

Quote:

Originally Posted by nuccionino

But paypal says 200 sales and 20K? Is that 20K made or 20K overall?

The IRS is what you need to worry about, no Paypal. Paypal only sends the 1099 if you reach 200 transactions AND $20,000. The IRS wants YOU to report any earnings! So yes, your $12,000 is wanted by the IRS.

jr24ai3 · 01-31-2012, 04:37 PM

Quote:

Originally Posted by nuccionino

But paypal says 200 sales and 20K? Is that 20K made or 20K overall?

20k received into your paypal.

jr24ai3 · 01-31-2012, 04:37 PM

Quote:

Originally Posted by cruiserdaddy7

VERY false information. This has been discussed at length and has been confirmed you need BOTH 200 transactions and $20,000 in sales. Why the OP would even post this crap is beyond me. Trying to scare people? Now this will come up in google searches and so on and shed more eyes onto the money made in this industry etc. Nice move, and very pointless.

It was a joke. Relax.

nuccionino · 01-31-2012, 04:40 PM

Quote:

Originally Posted by cruiserdaddy7

The IRS is what you need to worry about, no Paypal. Paypal only sends the 1099 if you reach 200 transactions AND $20,000. The IRS wants YOU to report any earnings! So yes, your $12,000 is wanted by the IRS.

Ok as long as it would be the $12,000 and not the $60,000. Still sucks but whatever.

bigdaddyblue73 · 01-31-2012, 04:41 PM

Quote:

Originally Posted by jr24ai3

Just joking! Thought I'd put a scare into some of you guys out there who have been worrying about the paypal tax forms.

17 forum members just died from a heart attack

festus · 01-31-2012, 04:49 PM

Quote:

Originally Posted by jr24ai3

Just joking! Thought I'd put a scare into some of you guys out there who have been worrying about the paypal tax forms.

have anything better to do jerk?

jr24ai3 · 01-31-2012, 04:54 PM

Quote:

Originally Posted by festus

have anything better to do jerk?

I hope you have never played a joke on someone. People are sooo sensitive.

imnotded · 01-31-2012, 04:54 PM

Quote:

Originally Posted by jr24ai3

It was a joke. Relax.

+1

Some of you guys are way too uptight.

festus · 01-31-2012, 04:54 PM

relax, i was joking. or was i?

jr24ai3 · 01-31-2012, 04:56 PM

Quote:

Originally Posted by nuccionino

Ok as long as it would be the $12,000 and not the $60,000. Still sucks but whatever.

If you took in $60,000 on paypal, that amount is reported to the IRS. It is your job to show the IRS that you had $48,000 in expenses related to the $60,000.

Ballerskrip · 01-31-2012, 04:58 PM

Quote:

Originally Posted by BoxBreaker72

This is a complete joke to begin with. What if you spent 60k and only made 40k? Do they own YOU money? Lets say you opened nothing but cases and took huge loses, how does that work? Thank god I was well under 200 total transactions. If I made money, it wasn't much, this is a HOBBY, not a business, I may have lost a grand or two, but I don't care because this is a hobby for me and I like breaking product.

THis is a question I have had as well. If I can show I have LOST money on my hobby, do they refund me? I am assuming the answer is no, but proves that this system is a joke. Kind of like gamlbing, you win $10,000 on a slot machine, boom, pay taxes. If you lose $10,000 throughout the year, they sure as hell don't pay you.

imnotded · 01-31-2012, 05:02 PM

Quote:

Originally Posted by Ballerskrip

THis is a question I have had as well. If I can show I have LOST money on my hobby, do they refund me? I am assuming the answer is no, but proves that this system is a joke. Kind of like gamlbing, you win $10,000 on a slot machine, boom, pay taxes. If you lose $10,000 throughout the year, they sure as hell don't pay you.

Call me crazy, but I dont think anyone in their right mind would tell you that our tax code is not a joke.

jr24ai3 · 01-31-2012, 05:12 PM

Quote:

Originally Posted by Ballerskrip

THis is a question I have had as well. If I can show I have LOST money on my hobby, do they refund me? I am assuming the answer is no, but proves that this system is a joke. Kind of like gamlbing, you win $10,000 on a slot machine, boom, pay taxes. If you lose $10,000 throughout the year, they sure as hell don't pay you.

If it's your hobby, you get enjoyment out of it. You are paying for it because you like it. They are not going to let you write off losses for "entertainment". But if you make money at it, you need to report it.

pac213up · 01-31-2012, 05:20 PM

Quote:

Originally Posted by Ballerskrip

THis is a question I have had as well. If I can show I have LOST money on my hobby, do they refund me? I am assuming the answer is no, but proves that this system is a joke. Kind of like gamlbing, you win $10,000 on a slot machine, boom, pay taxes. If you lose $10,000 throughout the year, they sure as hell don't pay you.

Business Owner's Toolkit: Hobby Loss Rules

pac213up · 01-31-2012, 05:24 PM

Quote:

Originally Posted by 12bizzles

Rules the same for 2012?

No changes to 2012 as far as I have heard. I think 2 or 3 years down the road will be a different story though and when that happens a bunch of people not reporting now are going to be in for a world of hurt trying to prove old expenses vs income.

jlzinck · 01-31-2012, 05:24 PM

Quote:

Originally Posted by jr24ai3

Just joking! Thought I'd put a scare into some of you guys out there who have been worrying about the paypal tax forms.

You would only put a scare into morons.....

01-31-2012, 04:10 PM	#27
burke23 Member Join Date: Mar 2010 Location: Minneapolis Posts: 5,249 burke23	What messes me on this stuff is trading loss/gain. I will be consigning more stuff this year to avoid this headache, although trying to do better by tracking everything in a db, but how do you 'prove' cash purposes or gain/loss in inventory value via trading? __________________ * Looking for high end defensive Cracked Ice Auto and Topps Chrome Red Ref Non-Auto RC *Also LF 1997 PMG Red FB and star Non-Auto Topps Chrome Red Refractor rc

01-31-2012, 04:21 PM	#29
nuccionino Banned Join Date: Apr 2011 Location: Michigan Posts: 8,783 nuccionino	So if someone spends $4000 a month to flip for $1000 profit a month, they make $60,000 in sales but spent $48,000... how does that work?

01-31-2012, 04:29 PM	#32
BoxBreaker72 Member Join Date: Jun 2009 Posts: 10,353	This is a complete joke to begin with. What if you spent 60k and only made 40k? Do they own YOU money? Lets say you opened nothing but cases and took huge loses, how does that work? Thank god I was well under 200 total transactions. If I made money, it wasn't much, this is a HOBBY, not a business, I may have lost a grand or two, but I don't care because this is a hobby for me and I like breaking product.

01-31-2012, 04:54 PM	#43
festus Member Join Date: Aug 2007 Location: florida Posts: 3,669	relax, i was joking. or was i?