Well, either I start a business or be done with PayPal according to my accountant. So I'll be stopping PayPal for purchases. Sorry. You may still purchase from me but will receive checks instead. Better yet, purchase my drag kits from retailers and mail-order outlets.
Thank you for your understanding. This was fun until my accountant got a hold of it. Now it's out of my control because I'm not accounting organized.
I feel your pain Brian. Two years ago PayPal started sending revenue numbers to the IRS when the annual take exceedes a certain amount. I don't think it was PayPal's idea, but when the IRS wants something....
-steve
No problems in the UK - YET ::)
I know people who have multiple accounts there and on eBay for just that reason, but then that procedure is really no different than business requirements to send out a 1099. If taxes are warranted, then they really should be paid, business is business.
Quote from: Midway Tommy on July 03, 2017, 01:43:14 PMIf taxes are warranted, then they really should be paid, business is business.
Agree, Tommy. I tried to game the system for my first 45 years or so.... it ended up eroding my self-respect, so I stopped. I play by the rules now. I also stopped using PayPal "Friends and Family" to pay for stuff when the seller asked, opting to increase the payment so the seller netted the same.... because I feel too many people feel entitled to get stuff for nothing, and I don't want to be one of them. Not dissing anyone here, just doing what I need to do to live happily within myself and sleep well at night.
I try to be as close to "non profit" as I can be because I DO NOT WANT TO BE A "BUSINESS". What I really want is to go fishing and get back to tinkering with my own reels.
I always consider it a flashing red light if a seller wants PayPal Friends and Family.
you waive your right to dispute as the buyer when sending funds as a "gift"
hence the number one red flag for someone who has something to hide and or cruel intentions is asking the buyer to surrender this protection ??? :P :P ???
unfortunately many private sellers are subscribed to the "not another penny for paypal club"
Quote from: sdlehr on July 03, 2017, 01:57:48 PM
Quote from: Midway Tommy on July 03, 2017, 01:43:14 PMIf taxes are warranted, then they really should be paid, business is business.
Agree, Tommy. I tried to game the system for my first 45 years or so.... it ended up eroding my self-respect, so I stopped. I play by the rules now. I also stopped using PayPal "Friends and Family" to pay for stuff when the seller asked, opting to increase the payment so the seller netted the same.... because I feel too many people feel entitled to get stuff for nothing, and I don't want to be one of them. Not dissing anyone here, just doing what I need to do to live happily within myself and sleep well at night.
I agree, Sid. I've always refused to pay for an item through the F&F option, and PayPal is my payment of choice on the interwebby.
Bryan, thanks for making those great kits available. all my penns and newels that I fish have them . just installed one in my 970 yesterday, along with a couple other upgrades, now a solid fish killer ;D
Bryan, when is Scott's going to start carrying your drag kits?
Paypal is required to report payments received to the IRS if the person has received more than $20,000 in one year and from at least 200 separate transactions.
Quote from: Pro Reel on July 04, 2017, 09:48:17 PM
Paypal is required to report payments received to the IRS if the person has received more than $20,000 in one year and from at least 200 separate transactions.
That's quite different than the 1099 requirement which is anything over $600 in a tax year from a single payer.
i've always managed to zero out the checking account and i have all the records, but i've stopped using paypal unless nothing else works. too bad. it was really easy. it would not have been so bad if paypal recorded outgoing money as well as incoming.
Quote from: alantani on July 05, 2017, 03:54:44 AM
i've always managed to zero out the checking account and i have all the records, but i've stopped using paypal unless nothing else works. too bad. it was really easy. it would not have been so bad if paypal recorded outgoing money as well as incoming.
That's why a good set of books/ledgers and accountant are important, to make sure expenses match or exceed the generated income. ;)
I consider paypal a valuable resource for me.
It gets it done. I use the friends and family for just that.
I use it on a weekly basis.
My wife has a separate PayPal account for her retirement business. One time she dumped her PayPal balance to the bank account and then had a cancelation and needed to make a huge refund. I transferred a grand from my PayPal to her's and a few weeks later she transferred it back to me. We both had to pay income tax on an extra thousand that year. Live and learn.
-steve
Quote from: alantani on July 05, 2017, 03:54:44 AM. it would not have been so bad if paypal recorded outgoing money as well as incoming.
I don't get this. PayPal reports, but you have records that document your outgoing funds.... which go into what you use for your tax return despite what comes in....
Ok. I admit it. I'm an accountant. But please don't tell anyone. Even if your activity is a hobby you still have to report your income if you are a resident of the US. The key, as has been previously said, is to make sure your expenses at least offset income. This shouldn't be difficult but it does require tracking expenses. It is a surprise to most people that all income is supposed to be reported. That includes the used dryer you sold last year. Of course, you likely paid more than the sales price so you have no taxable income but the sale still is supposed to be included. Unfortunately, you can't take the loss on the dryer either. Hope this helps.
It's not the 1099. It's the inability for PayPal to offset expenses, such as postage and PayPal fees in one statement. PayPal reports based on revenue and not income.
Quote from: Bryan Young on July 05, 2017, 02:42:39 PM
It's not the 1099. It's the inability for PayPal to offset expenses, such as postage and PayPal fees in one statement. PayPal reports based on revenue and not income.
Bryan,
You can customize the reports any way you want them. I even use them to pay sales tax.
PayPal reports based on revenue and not income. You can pull that amount from the report and deduct it in your tax returns. It's a cost of business.
I did my 2016 returns in about 5 hours with one report from PayPal.
Tom
Than its no PayPal until I can figure out the reports.
PayPal has been good for me and I do not mind paying them for their service, and do not like getting $ using F&F unless it is not a transaction.
oops. noted
We had a vacation rental with airbnb for many years and used paypal for almost every booking. They started with the 1099's a few years ago. One giant headache after another but it made life easy for our guests. Still better than taking checks and credit cards though and keeping track of who paid what and when. At least it was all in one place. I can imagine for Bryan what a hassle it must be keeping track of everything and then trying to backtrack to figure out all the expenses.
I use QB to keep checking my transactions. I have every PayPal transactions in QB, and QB will take care the rest when time is filing for income tax. I also use PayPal's report and Square's report for sale tax every quarter of year.
We have the combo of QuickBooks and the reports, since Paypal does all our transactions for the site inc credit cards.
I guess I'll be purchasing and learning quickbooks shortly.
I would suggest you spend an hour or two with someone trained in Quickbooks to help you get set up and get started with the basics, best to be your accountant or bookkeeper. It can be a little intimidating at first, and if you don't set it up right in the beginning you'll have problems in the end exactly when you need them least. Quickbooks actually has a referral service and can refer you to one of these people if you need that. I had my accountant help me set it up, and at the end of the year I just send her my Quickbooks file and I'm done.
The bottom line...uncle sam wants ( 1 ) metal washer and ( 1 ) carbon fiber washer out of each kit you sell.
You'll get used to it, we all do.
It's not the 1099. It's the fact that it's so hard to extract information from PayPal and reporting revenue and not expenses or offset revenue with expenses is not done. This is irritating.
Quote from: Alto Mare on July 06, 2017, 08:50:11 PM
The bottom line...uncle sam wants ( 1 ) metal washer and ( 1 ) carbon fiber washer out of each kit you sell.
You'll get used to it, we all do.
That's about right actually. On a 5+1 kit, sam needs 20%...lol
I don't know about your bank but mine allows me to send money to anyone with an email or cell number. Does not solve all the issues but its a quick and easy way to send money...and safe...
Andy