Anything sold via goods and services now earns you a 1099-k. It’s all considered business income now. Not a huge deal for me but I’m sure there are quite a few watch dealers that weren’t paying attention to this last year
So eBay compiling this information for you, so you don't have to do it yourself, is considered a kick in the nuts? I don't think eBay sets tax law or decides who runs a business or not, so I'm not sure you are angry at the right people...
It’s not eBay it’s PayPal. So if you sold your old watch you bought in high school on Omegaforums, it’ll now be counted as income for you.
Yes but the threshold is supposed to be $20,000 per year and/or 200 transactions for goods and services. I had two transactions for way less than that. I’ve also been a PayPal member for 17 years and this is the first time I’ve received this
Just remember if you have your original purchase receipt, proof, you can include that and make it into capital gains/losses. Increases your paperwork but keeps it from being pure income. I’ve been through an IRS audit and they included PayPal income but being anal with keeping records I was able to show it wasn’t pure income. So if you bought a watch for $5000 and flipped it for $5500, if you have records you are only on the hook for taxes on the $500 profit. IF you have good records. edit to add: And I am only a hobby collector, not in “the business”, so PayPal wasn’t my income source. In my Audit it was only around $8k in sales.
Line 1: '... we've have issued...' ? Reads like one of those emails from Africa asking you to claim commission for transferring money. Probably is one of those. Don't click, delete.
Good that you did that, but I would be really hard-pressed to find receipts for most of the vintage watches I purchased from other collectors.
In California, supercar owners are pissed that they cannot register in Montana anymore as a tax dodge on registration. I'm like you're buying a 300k car, and you can't pay the taxes? F off.
If they are issuing you a 1099, that means they have your SSN...and it's likely that Paypal provides a copy of that 1099 info to the IRS. So not opening the email and playing dumb is not going to get you off the hook, since when you go to file your taxes, there will be a discrepancy between the income the IRS shows and the income you reported on your return.
As more and more transactions are easily trackable, and as more and more governments are desperate for tax revenue, this will only increase. Be prepared to pay your 'fair share'. Keep records of your cost basis so you only pay taxes on your gains. Many watches are sold with only a slight gain, or even a loss, no need to overpay.
Strange. I logged into my Paypal account to check to see if I had one waiting for me in the 'statements' tab and it said I did not have one available. (I suppose they still have another week to issue mine, so I'm not out of the woods yet) Their tax page still has the $20k/year verbiage on it. This is the first I have heard of them hitting everyone with a 1099 who received any $ via goods and service. "Only those customers that meet the 1099-K eligibility requirements will see the 1099-K available for download in their account." https://www.paypal.com/us/smarthelp...e-irs-will-i-receive-a-tax-form-1099-k-faq729
Direct your anger towards wayfair https://www.google.com/amp/s/www.br...ce-companies-a-stake-in-local-government/amp/
The holier-than-thou know-it-all replies in this thread are just annoying. As if you all pay income tax on every little thing you sell online, or keep documentation of everything you buy from someone else (or for service/repair costs). I'm sure you all have bills of sale for the watches you have bought using wire transfer, Transferwise, etc. I can absolutely empathize with the OP, being taken by surprise. And the same members will soon be urging newbies to refuse to pay for watches via PP F&F.
Were you upgraded to a business account by any chance? The policy also has the following caveats. Do any apply to you?
I don't know the tax rules in the US. But in the UK and you sell personal possessions, up to if I recall £8k per item, you do not pay any forms of capital gains, as it doesn't contribute towards income. If however, the tax office have reason to believe it is not just "a hobby" and instead a business, then they will of course tax you on the full income, minus expenses. I should imagine this must be the same is USA? There must be thresholds you have to breach in order to have to declare it on a tax return?
