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Paypal and taxes


Deeker

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Do you have to pay taxes on eBay sales.... Yes.

You also have to not j walk.

People do it and get away with it.

If people want to start talking legality of it. Come correct.

You can..... Legally declare a loss on your business for a few years. You can legally write everything off.

What you do as far as paying taxes and how your are is a personal choice.

Sent from my SAMSUNG-SGH-I747 using Brickpicker mobile app

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Without starting another fight about what is right/wrong concerning paying taxes.

What about selling on Brick Classifieds and EBay, will it be the sum of sales from both which will be used by PayPal to determine when to issue a 1099 form at the end of the year?

Yes, they sum all gross receipts both on and off eBay for 1099.

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i just want to drop this little nugget here and ask if this is proper.  You can claim gas money used as expenses for income right to go and buy lego sets?  also you can claim cost of internet as a deductible as well as any shipping that is ever incurred right?

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i just want to drop this little nugget here and ask if this is proper. You can claim gas money used as expenses for income right to go and buy lego sets? also you can claim cost of internet as a deductible as well as any shipping that is ever incurred right?

This is correct. As well as any space you use to store lego. Tour laptop your phone your printer....etc etc. Pretty much anything. If you arnt doing serious serious volume you should Not be paying much if anything in taxes.

Sent from my SAMSUNG-SGH-I747 using Brickpicker mobile app

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i just want to drop this little nugget here and ask if this is proper.  You can claim gas money used as expenses for income right to go and buy lego sets?  also you can claim cost of internet as a deductible as well as any shipping that is ever incurred right?

 

Point of clarification on this, you can claim EITHER Milage OR actual costs (gas, repairs, etc). In the vast majority of cases, Milage is the easier/better way to go. I think it was .56 a mile this past year.

 

http://www.nolo.com/legal-encyclopedia/small-business-tax-faq-29131-2.html

 

Is a decent rundown on vehicle expenses claims. 

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  • 1 year later...
53 minutes ago, jgschmieg3 said:

Can someone please clarify something for me?  I understand the 200 transactions and 20000 rule for getting A 1099.  However, what constitutes a transaction?  Is it 200 sales? Or is it a combination of sales and purchases equals 200? 

The 200 transaction requirement is for sales only. Purchases, gift payments, or payments from family or friends are not included in the total to make 200.

Just remember just because Paypal does not issue a 1099 does not mean you do not have to declare your lego reselling income on your taxes. Also the 200 transactions / $20k rule is the threshold at which Paypal is required by law to report your income to the IRS. They can issue a 1099 if you do not meet the thresholds if they wish. 

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9 minutes ago, Legbrick said:

Money paid TO YOU is what they count. Incoming cash!

Not outgoing.

They got me good last year... big chunk of my profits POOF!

Those were not really your profits - even a single sale should be reported on your tax return and appropriately taxed. Just because they don't come knocking doesn't mean it's not taxable ....

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