Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 10:08AM

Simon, You are 100% correct. It applies to all third party payment processors like PP, eBay, Venmo, etc.

I just spoke about PP because it is the only one I have experience with.

> Simon King wrote:

> -------------------------------------------------------

> Worth noting that these changes also apply to eBay, so really across the

> board to anyone taking payments. All the more reason to use the buy/sell

> forum and make F&F payments to people you trust. Or hit up the ATM for

> cash and head to the Zeros swap meet. Still, it stings that that this

> change is going live when we still can't seem to make headway on taxing

> the wealthy. (edited)

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Re: Mopeds, PayPal and Income Taxes…..

Pushrod Fifty /
supercub
Jan 27, 2022 10:33AM

With the high cost of shipping nowadays, you really have to give stuff away to make it a worthwhile sale. I've been giving stuff away on CL and at the free table at the dump because I'm tired of haggling with people and with the high fees from ebay and PayPal. Ebay now requires sellers to set up their bank accounts directly with them. I say no way.

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Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 10:41AM

I use FB Marketplace now to sell my stuff. You don’t get the broad exposure you would get on eBay, but there are no fees, cash is king and there’s no shipping involved. If you do want to accept PP payments, since the transactions are in person, they can all be done using the F&F option. My only concern is that the IRS may start to look at F&F transactions in the future. (edited)

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Re: Mopeds, PayPal and Income Taxes…..

Stephen Keller /
keller_stephen
Jan 27, 2022 10:43AM

^ I just started using that, have not figured out how to post an ad as of yet, but will get around to it, and gives you more choices than CL, which in spite of it's rep has sold everything I put on there, and where all of my cars have come from.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 10:51AM

I used to use CL to buy and sell stuff, but it became full of lowballing, bottom feeders trying to “steal” your stuff. My buying and selling experiences have been very positive on FB Marketplace. You do get the occasional lowballer, but not to the extent you do on CL.

> Stephen Keller wrote:

> -------------------------------------------------------

> ^ I just started using that, have not figured out how to post an ad as

> of yet, but will get around to it, and gives you more choices than CL,

> which in spite of it's rep has sold everything I put on there, and where

> all of my cars have come from.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Andy f kin Scouten /
andyscouten
Jan 27, 2022 10:58AM

> Moped Lar wrote:

> -------------------------------------------------------

> I used to use CL to buy and sell stuff, but it became full of

> lowballing, bottom feeders trying to “steal” your stuff. My buying and

> selling experiences have been very positive on FB Marketplace. You do

> get the occasional lowballer, but not to the extent you do on CL.

>

FB Market place def has a larger audience, and takes a way a bit of the anonymous aspects of CL, which can make for smoother transactions, in my experience anyhow

Reply

Re: Mopeds, PayPal and Income Taxes…..

LSLB RXb /
adamr
Jan 27, 2022 11:20AM

i’ve heard they’re coming after facebook market place next. if you mark the ad as sold then there is a record of that transaction :)

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Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 11:33AM

I haven’t heard that myself, but I wouldn’t doubt it. Gonna be hard to prove what stuff actually sold for unless IRS looks at all the cash deposits in your bank account (unless it’s under your mattress).

> LSLB RXb wrote:

> -------------------------------------------------------

> i’ve heard they’re coming after facebook market place next. if you mark

> the ad as sold then there is a record of that transaction :)

Reply

Re: Mopeds, PayPal and Income Taxes…..

Jeremy D /
jeremybd
Jan 27, 2022 12:03PM

The problem is that nobody wants to use friends and family because PayPal offers no protection to buyers, the same can be said for using a check or money order in the mail.

> Moped Lar wrote:

> -------------------------------------------------------

> Other than consulting with a legitimate tax professional, my best advice

> to everyone here is to ONLY take F&F PayPal payments or cash for your

> property.

Reply

Re: Mopeds, PayPal and Income Taxes…..

LSLB RXb /
adamr
Jan 27, 2022 12:11PM

> Moped Lar wrote:

> -------------------------------------------------------

> I haven’t heard that myself, but I wouldn’t doubt it. Gonna be hard to

> prove what stuff actually sold for unless IRS looks at all the cash

> deposits in your bank account (unless it’s under your mattress).

a listing marked sold is just as a good of a sales ledger as nearly anything else. doesn’t matter how the revenue came in, if it had a price and was marked sold, it is what it is.

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Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 12:19PM

You’re absolutely right. There’s no easy answer to this issue. If buyers will not do PP F&F, you’re pretty much between a rock and a hard place. That’s why Simon said to do business with people you know in the B/S forum or at swap meets like we used to do in the old days. If you have to sell not using F&F, you’re pretty much screwed from a tax standpoint:

> Jeremy D wrote:

> -------------------------------------------------------

> The problem is that nobody wants to use friends and family because

> PayPal offers no protection to buyers, the same can be said for using a

> check or money order in the mail.

>

> > Moped Lar wrote:

>

> > -------------------------------------------------------

>

> > Other than consulting with a legitimate tax professional, my best

> advice

>

> > to everyone here is to ONLY take F&F PayPal payments or cash for your

>

> > property.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 12:25PM

I would venture to say that the majority of stuff sold on FB goes for less than asking price. Who here hasn’t negotiated a reduced sales price? FB does not allow a seller to go back into their ad and update what their item actually sold for. At least on eBay, you can actually see the final sales price.

> LSLB RXb wrote:

> -------------------------------------------------------

> > Moped Lar wrote:

>

> > -------------------------------------------------------

>

> > I haven’t heard that myself, but I wouldn’t doubt it. Gonna be hard to

>

> > prove what stuff actually sold for unless IRS looks at all the cash

>

> > deposits in your bank account (unless it’s under your mattress).

>

> a listing marked sold is just as a good of a sales ledger as nearly

> anything else. doesn’t matter how the revenue came in, if it had a price

> and was marked sold, it is what it is. (edited)

Reply

Re: Mopeds, PayPal and Income Taxes…..

LSLB RXb /
adamr
Jan 27, 2022 12:31PM

> Moped Lar wrote:

> -------------------------------------------------------

> I would venture to say that the majority of stuff sold on FB goes for

> less than asking price. Who here hasn’t negotiated a reduced sales

> price? FB does not allow a seller to go back in to their ad and state

> what their item actually sold for. At least on eBay, you can actually

> see the final sales price.

>

while that is in fact true, i’m sure it’s very easy (probably automated) for facebook to whip up a transaction log that you’ll be able to fill in later with sale prices. who knows.

what i do know is that Massachusetts is already hunting down people who weren’t 100% honest in their filing their unemployment benefits and paypal and venmo are gonna be a big snitch for a lot of people

https://www.bostonglobe.com/2022/01/17/business/mass-seeks-claw-back-least-27-billion-jobless-benefits-it-says-were-incorrectly-paid/?outputType=amp

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Re: Mopeds, PayPal and Income Taxes…..

Pushrod Fifty /
supercub
Jan 27, 2022 12:31PM

I see alot of FB listings that are 3 months old for things that are reasonably priced demand items. Perhaps the sellers are leaving the status open for the reason of not wanting to document the completed sale. After all, FB is the site for finding out about people.

Setting up a small business account with IRS is pretty easy and the filing is a simple form along with the 1040. If I was in the biz I would do it just for peace of mind. I look at what I'm doing and what my consequences are (most of the time), and not what others are flagrantly getting away with as a baseline.

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Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 12:37PM

Funny you said that. Back in the late ‘80’s, I was a tax auditor for the MA Department of Revenue. We were pretty darn aggressive back then. We used to assess nearly 20% interest and penalties on top of the additional tax on unreported income.

> LSLB RXb wrote:

> -------------------------------------------------------

> > Moped Lar wrote:

>

> > -------------------------------------------------------

>

> > I would venture to say that the majority of stuff sold on FB goes for

>

> > less than asking price. Who here hasn’t negotiated a reduced sales

>

> > price? FB does not allow a seller to go back in to their ad and state

>

> > what their item actually sold for. At least on eBay, you can actually

>

> > see the final sales price.

>

> >

>

> while that is in fact true, i’m sure it’s very easy (probably automated)

> for facebook to whip up a transaction log that you’ll be able to fill in

> later with sale prices. who knows.

>

> what i do know is that Massachusetts is already hunting down people who

> weren’t 100% honest in their filing their unemployment benefits and

> paypal and venmo are gonna be a big snitch for a lot of people

>

> https://www.bostonglobe.com/2022/01/17/business/mass-seeks-claw-back-least-27-billion-jobless-benefits-it-says-were-incorrectly-paid/?outputType=amp (edited)

Reply

Re: Mopeds, PayPal and Income Taxes…..

LSLB RXb /
adamr
Jan 27, 2022 12:39PM

> Moped Lar wrote:

> -------------------------------------------------------

> Funny you said that. Back in the late ‘80’s, I was a tax auditor for the

> MA Department of Revenue. We were pretty darn aggressive back then. We

> used to assess nearly 20% interest and penalties on top of the

> additional tax on unreported income.

>

taxachusetts baby, report those earnings honestly or pay the price (edited)

Reply

Re: Mopeds, PayPal and Income Taxes…..

✝️TD-THE MORAL AUTHORITY✝️ ✨ /
sinister78
Jan 27, 2022 12:41PM

Everyone take your dirty cash and go swap (covid) at a mid-pandemic in person commerce meet up (not for profits) lolol goddam this is bad advice.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Stephen Keller /
keller_stephen
Jan 27, 2022 12:43PM

Don't steal, the government HATES competition! So, on marketplace you can't just delete your ad when an item sells? This might bring more people back to Cl.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 12:44PM

> LSLB RXb wrote:

> -------------------------------------------------------

> > Moped Lar wrote:

>

> > -------------------------------------------------------

>

> > Funny you said that. Back in the late ‘80’s, I was a tax auditor for

> the

>

> > MA Department of Revenue. We were pretty darn aggressive back then. We

>

> > used to assess nearly 20% interest and penalties on top of the

>

> > additional tax on unreported income.

>

> >

>

> taxachusetts baby, report those earnings honestly or pay the price

That’s why I lived in NH back then. No income tax, baby!

Reply

Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 12:47PM

> Stephen Keller wrote:

> -------------------------------------------------------

> Don't steal, the government HATES competition! So, on marketplace you

> can't just delete your ad when an item sells? This might bring more

> people back to Cl.

Yes, you can just delete your ad on fb. You don’t have to mark it as pending or sold. Sellers do that to keep buyers from continuing to PM them on an item that’s no longer for sale.

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Re: Mopeds, PayPal and Income Taxes…..

Andy f kin Scouten /
andyscouten
Jan 27, 2022 01:43PM

> Moped Lar wrote:

> -------------------------------------------------------

> > Stephen Keller wrote:

>

> > -------------------------------------------------------

>

> > Don't steal, the government HATES competition! So, on marketplace you

>

> > can't just delete your ad when an item sells? This might bring more

>

> > people back to Cl.

>

> Yes, you can just delete your ad on fb. You don’t have to mark it as

> pending or sold. Sellers do that to keep buyers from continuing to PM

> them on an item that’s no longer for sale.

I’ve always done this, I just figured it was one less breadcrumb for Facebook, guess it worked out lol

Reply

Re: Mopeds, PayPal and Income Taxes…..

Graham Motzing /
grahammotzing
Jan 27, 2022 02:09PM

I buy groceries in person every week with like 100 filthy unmasked heathens in the store. I don't really see how buying moped parts from like minded ppl I trust in person is any worse.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Moped Lar /
mopedlar OP
Jan 27, 2022 02:22PM

It’s not, if anything, going to the store is more risky. I wear a KN95 mask whenever I go out to the stores or meet people in person, regardless of their masking preference. I would do the same thing at a swap meet.

> Graham Motzing wrote:

> -------------------------------------------------------

> I buy groceries in person every week with like 100 filthy unmasked

> heathens in the store. I don't really see how buying moped parts from

> like minded ppl I trust in person is any worse.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Born to be WillD /
willd
Jan 27, 2022 03:08PM

Yea same. Fucking covid sucks. Also our tax system sucks. Both have managed to be extremely profitable for the ultra wealthy however.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Larry Picarello /
treehouse99
Jan 27, 2022 04:03PM

Cash is king.

Reply

Re: Mopeds, PayPal and Income Taxes…..

MPB Andyrew /
spudley
Jan 27, 2022 05:00PM

> Toledo Riot wrote:

> -------------------------------------------------------

>

> FB Market place def has a larger audience, and takes a way a bit of the

> anonymous aspects of CL, which can make for smoother transactions, in my

> experience anyhow

I'd rather use CL than FB to buy and sell stuff but unfortunately CL is pretty dead these days. The $5 charge to list a car was the final nail in the coffin.

Reply

Re: Mopeds, PayPal and Income Taxes…..

Simon King /
simon
Jan 27, 2022 07:00PM

It looks like eBay is trying to push back on this new rule and has a campaign to tell the federal legislators in a user’s district that this is unfair. They have a simple form you can fill out to add your voice to the effort.

Here's their main page on the effort: US 1099-K Federal Tax Reporting Burdens on Casual Sellers (edited)

Reply

Re: Mopeds, PayPal and Income Taxes…..

Simon King /
simon
Jan 27, 2022 07:25PM

Doing a little more research on this, it seems clear that the income reported on a 1099-K from one of these payment processors should not all (necessarily) be considered taxable. But what we don't have yet is the guidance on the best way to properly report that situation on our tax returns. I guess the good thing is that we 14 months to figure it out.

Below are some good points from an eBay post on their seller forum.

"Many sales on eBay aren’t taxable, so if your sales are over the $600 threshold it doesn’t necessarily mean you will be taxed on those sales. Only goods that are sold for a profit are considered taxable, so you won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 a few years ago, and then sold it on eBay today for $700, that $700 you made generally would not be subject to income tax."

"We believe this new legislation will cause confusion, over-reporting of non-taxable income, and privacy concerns for millions of Americans..."

Reply

Re: Mopeds, PayPal and Income Taxes…..

🇮🇹💦 Of the Loin /
maitland
Jan 27, 2022 10:36PM

this thread turned out exactly how I expected it

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a buncha idiots yelling about "muh taxes"

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Re: Mopeds, PayPal and Income Taxes…..

🦺🥇b to the MOPO 🚨🚨🚨 eff /
brianf
Jan 27, 2022 11:35PM

> Moped Lar wrote:

> -------------------------------------------------------

> I would venture to say that the majority of stuff sold on FB goes for

> less than asking price. Who here hasn’t negotiated a reduced sales

> price?

The great majority of the time I do not. I greatly dislike doing so, so I generally pursue items for sale at a price I'm already happy with.

Reply

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