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Thread: Paypal/venmo workarounds jan 1?
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11-07-2021, 10:15 AM #1Registered User
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Paypal/venmo workarounds jan 1?
Hey I was wondering if anyone was aware of the upcoming rule change on Jan 1 where funds beyond $600 in a year through paypal/venmo etc were to be reported to the I-R-S. Anyone with ideas how to procede?
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11-07-2021, 10:36 AM #2
Friends and Family for everything? Yes, you would lose buyer/seller protections…
Forum Cross Pollinator, gratuitously strident
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11-08-2021, 05:39 AM #3
There was a related thread here a while back: https://www.tetongravity.com/forums/...rvice-Payments
So far as I know, Venmo isn’t implicated as it’s for payments between friends. Same with PayPal “friends and family.”
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11-08-2021, 07:10 AM #4Registered User
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Stubhub started the same thing two years ago, I get a 1099 for the tickets sold. sucks...
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11-08-2021, 07:14 AM #5
You are a ticket scalper?
Forum Cross Pollinator, gratuitously strident
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11-08-2021, 07:20 AM #6
Hmmm, all my tenants pay their rent to me through Venmo
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11-08-2021, 07:54 AM #7Registered User
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No. been a long-time season ticket holder but I am never around to go to the games....don't want to give them up.
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11-08-2021, 08:58 AM #8
... but you are reporting rental income on your taxes like a good citizen anyway, right? So the issuance of a 1099 from Venmo wouldn't make a difference.
Note: on my study of the legislation it's not entirely clear to me that Venmo would be issuing 1099's, since Venmo is generally not earmarked as a payment processor for "goods" or "services," rather being for transactions between family and friends.
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11-08-2021, 09:35 AM #9
Isn’t this a bit of a non-issue unless you are selling for profit? I’m guessing the average user here is selling used gear for less than they paid. Anyone flipping gear (or operating as a retailer/reseller/wholesaler) for any substantial profit should theoretically be reporting this income already anyway.
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11-08-2021, 09:47 AM #10
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11-08-2021, 12:32 PM #11The whole human race is de evolving; it is due to birth control, smart people use birth control, and stupid people keep pooping out more stupid babies.
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11-08-2021, 01:09 PM #12Registered User
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Perhaps you could try to encourage buyers to pay you via other channels than just PayPal and Venmo - Cash App, Zelle, physical cash (for local sales), and cryptocurrency.
I think that the administration backed off of requiring banks to report payments over $600 to the IRS via one of the two big bills in Congress right now. That was the other side of the surveillance loop.
If cash were invented today, would it be legal?
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11-08-2021, 01:49 PM #13
Pretty much. F&F transaction volume is probably going to skyrocket. Buying/selling on Pinkbike is going to get interesting. Should be relatively safe if you're buying from an established member with a long history of sold items, but I wonder if there's a way to spoof a PB profile to show a long sold item history.
There's a Goods & Services option in Venmo with buyer/seller protections that will be affected.
Technically yes, but it will require you to do your taxes as a small business so you can deduct the original cost of the items. That's not that hard in Turbotax, but still kind of a PITA, and it will require you to be much more diligent about saving receipts in case you get audited (which will probably be more likely, too).
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11-08-2021, 02:46 PM #14
I remember when everything purchased from everywhere online came tax free. Then they started adding taxes if the seller had a shop in your state.. Now, it seems they want everyone to pay taxes on everything... except Bezos, Musk, Waltons, etc..
Go that way really REALLY fast. If something gets in your way, TURN!
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11-08-2021, 02:51 PM #15
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11-10-2021, 07:22 PM #16
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11-10-2021, 07:40 PM #17
last I read (~3 weeks ago) this legislation was on rocky ground and the updated cutoff was raised to $10,000.
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11-10-2021, 08:34 PM #18
My strategy when I sell is going to be:
Pay with F&F.
If you don’t feel comfortable doing that, then pay with goods and services…but I am charging you the tax as well. Don’t like it?
NEXTForum Cross Pollinator, gratuitously strident
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11-10-2021, 09:17 PM #19
The subject matter if this thread is a $600 IRS rule for the issuance of a 1099, brought forth by the current administration. Prior to that is was a floor of $20,000 before 1099 issuance, introduced in 2008. Just because you can choose a new master every four years doesn’t make you not a slave.
Edit: it might have been 2011, not 2008, but you get the point.
Good! $10,000 is more in line with what I believe to be the initial intent of the legislation: to treat as income the money made by online resellers and the like.
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