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Paypal 1099-k new rules


marcandre

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Oh, and with the new covid stimulus bill, they threw in all financial institutions like ebay and paypal will be sending 1099 to anyone who sells over $600.  So it looks like next year or the following year everyone will basically be getting one even if you just sold you old junk. 

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This will piss off a lot of people who use eBay to “get rid of stuff”.  To me this is a gray area. For example if I personally sell a bunch of stuff like video games, stereo gear, toys etc for less than I paid for them originally but go over the $600 threshold does that automatically mean I have to count it as income?  

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3 minutes ago, Mathew said:

This will piss off a lot of people who use eBay to “get rid of stuff”.  To me this is a gray area. For example if I personally sell a bunch of stuff like video games, stereo gear, toys etc for less than I paid for them originally but go over the $600 threshold does that automatically mean I have to count it as income?  

Yep, and if you deduct the cost of the items you may have to prove the purchase price.  I am sure everyone has receipts for their video game purchases from 15 years ago.  The best part is you can sell something for $10 and cost $30 to ship and another $3 for tax.  IRS will see that as a profit of $43.  

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3 minutes ago, Mathew said:

Schedule C indicates that you are self employed.  I’m talking about selling personal items. Not reselling as a business. 

Before I was an official business, Schedule C was where my accountant at the time entered my sales & related expenses.

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45 minutes ago, gmpirate said:

Before I was an official business, Schedule C was where my accountant at the time entered my sales & related expenses.

Right. If you’re going to report it then it has to be entered somehow. Regardless with the new rules thousands of people just became small businesses without knowing  it. 

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1 hour ago, BrickLegacy said:

Anyone else get an email from Paypal back in January with the subject "2020 Form 1099-K available" but the document is nowhere to be found in the Reports/Tax Documents section?  (nothing in the mail either). 

 

I would call Paypal.  I downloaded mine back in January but now it is gone.  Also gone are the 1099s from previous years, I usually can see up  to at least 2018.  This is annoying

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52 minutes ago, Darth_Raichu said:

I would call Paypal.  I downloaded mine back in January but now it is gone.  Also gone are the 1099s from previous years, I usually can see up  to at least 2018.  This is annoying

Thanks for confirming. Yes, this is very annoying. I'm a procrastinator so I didn't download it when it became available. I've never had issues with this in the past. Were you able to download your reconciliation file, too?  It's a summary of activity that reconciles to the 1099 statement. I typically need both. I can't see previous years either.

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2 minutes ago, BrickLegacy said:

Thanks for confirming. Yes, this is very annoying. I'm a procrastinator so I didn't download it when it became available. I've never had issues with this in the past. Were you able to download your reconciliation file, too?  It's a summary of activity that reconciles to the 1099 statement. I typically need both. I can't see previous years either.

Yes, both were available.  Now the tax page is empty

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"Thank you for contacting PayPal Customer Support. My name is Joanna and I am happy to assist you.

Thank you for bring this to our attention. We have noticed that some 1099-k have been removed from the account and our systems are currently working on getting this resolved. I do apologize for the confusion, no need to worry this will be resolved shortly!"

RE: 

Please define shortly...

 
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1 minute ago, BrickLegacy said:

"Thank you for contacting PayPal Customer Support. My name is Joanna and I am happy to assist you.

Thank you for bring this to our attention. We have noticed that some 1099-k have been removed from the account and our systems are currently working on getting this resolved. I do apologize for the confusion, no need to worry this will be resolved shortly!"

RE: 

Please define shortly...

 

Hmm, technically by law they have to make these available by 1/31.  Perhaps casually mention that on your reply asking for ETA ?

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9 minutes ago, Darth_Raichu said:

Hmm, technically by law they have to make these available by 1/31.  Perhaps casually mention that on your reply asking for ETA ?

Yep - I asked for an ETA so we'll see what they come back with. I'm sure I will just get the runaround for a few days. At least they acknowledged it so that's a step in the right direction!

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14 minutes ago, BrickLegacy said:

Yep - I asked for an ETA so we'll see what they come back with. I'm sure I will just get the runaround for a few days. At least they acknowledged it so that's a step in the right direction!

Can anyone verify if the "Sales Insight" total from 2020 is the same number that is on the 1099K? I am tempted to use that number instead of waiting for this form to show up. 

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