[big44maghunter]

For anyone who sells a lot online through these places. I got an email from paypal the other day about providing my SS number for tax purposes. I did a little google searching and see that if you have 200 market transactions or 20k in market payments you need to provide your SS number so they can send you a 1099k for taxes. I also did a little looking on Ebay because they keep sending me emails also about setting up as a seller with their new payment plan. I also see that ebay has the same thresholds for sales. 200 sales or 20k$.

First, I know all the comments about PP and Ebay and I think they suck too but they work for some sales. Yes, I hate to support them and try my best not to but sometimes I need to use them!

My real question is does gunbroker have this same policy? I never even thought to look and have had a lot of sales on GB this year. Way over the 20k limit but I don't think they have my SS number and have not asked for it. Just hoping I don't get into a tax issue that I wasn't prepared for.

Also, I'm assuming from what I read on PP is that any friends and family transactions do not count towards the threshold. Anyone know on that? Guess I should just start taking money orders only. Even with Zelle it might be an issue in the future if this $600 banking limit goes through I've been hearing about.

Thanks for any input!

 

[IMBLITZVT]

I got this crap from paypal. I told them to stick it, I am not sending my SS. I tried to get them to cancel my account, which they would not do either. It was kind of the final straw for me with paypal. Zelle seems to be working much better for now. Anyway, Paypal locked my account and I can't receive any money with it now. ..!.. to paypal.

 

[big44maghunter]

I got this crap from paypal. I told them to stick it, I am not sending my SS. I tried to get them to cancel my account, which they would not do either. It was kind of the final straw for me with paypal. Zelle seems to be working much better for now. Anyway, Paypal locked my account and I can't receive any money with it now. ..!.. to paypal.

I hear ya, I'm not giving them my SS number. I guess when you start to get close to the limit they start to try to get it from you before you get there. If you don't provide it, they lock your account so you don't go over the limit. Now that I know about it I will adjust what I use to not get there.

 

[IMBLITZVT]

I hear ya, I'm not giving them my SS number. I guess when you start to get close to the limit they start to try to get it from you before you get there. If you don't provide it, they lock your account so you don't go over the limit. Now that I know about it I will adjust what I use to not get there.

That would make some sense but I was not even close to that limit. I feel like they were just being A-holes....

And.... if I had not gotten to the limit, I should have been able to cancel my account. They would not let me cancel the account until they got the info.

Just a bunch of Nazis I think.

 

[Abominog]

Whatever the source, if it’s reported to IRS as revenue you better report it on tax filings otherwise they will flag a discrepancy. Further you’ll have to offset that with expenses because you don’t want to pay tax on revenue, only profit, and have records to show if audited. This can be challenging when selling off a personal collection.

 

[M2JB]

The limits for reporting to the IRS are over 200 transactions AND over $20k in sales. BOTH of these threshholds must be met to the best of my knowledge.

 

[big44maghunter]

Whatever the source, if it’s reported to IRS as revenue you better report it on tax filings otherwise they will flag a discrepancy. Further you’ll have to offset that with expenses because you don’t want to pay tax on revenue, only profit, and have records to show if audited. This can be challenging when selling off a personal collection.

I agree just thought that as a first line of defense, if they don't have my SS number maybe they wouldn't be able to file anything. At this point I'm not in that situation with any of the sales platforms, just wasn't aware of the thresholds until now. I'm glad to know them though so I can stay under it.

 

[Rory]

Anything that ties to your bank….

nothing other than cash sales could be some level of hidden, for those of you that want to. Zelle ties to your bank account. Banks have your ssn. Your attempts at hiding are futile

 

[big44maghunter]

Anything that ties to your bank….

nothing other than cash sales could be some level of hidden, for those of you that want to. Zelle ties to your bank account. Banks have your ssn. Your attempts at hiding are futile

I get what you're saying but right now banks aren't tracking that, at least at my level of sales. Zelle is still pretty good because it is not solely a business transaction so nothing there really worries me yet, but as I said if they do start tracking $600 and up transfers like is being discussed it could be a problem.

 

[Rory]

Banks have been reporting well over what they are required to for a long time. This is to keep them safe in the regulations. $10,000 plus quickly turned in to $2,500. they just don't ask for your ID at the same time any more.

 

[Hershmeister]

USPS MO FTW


Sent from my iPhone using Tapatalk

 

[Rory]

USPS MO FTW


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those are never tracked by the .gov.......

 

[redroth]

So.... IMHO I believe money orders ARE tracked. I am not positive of all the regulations but I know for sure purchase of more than $3.500 worth of USPS money orders at one time is recorded by the USPS. Ran into this recently, I watched the clerk fill out the forms. Questions like do you know the purchaser.... Not sure if I had to provide my ID or not, certainly did NOT have to provide SSN.

 

[IMBLITZVT]

So.... IMHO I believe money orders ARE tracked. I am not positive of all the regulations but I know for sure purchase of more than $3.500 worth of USPS money orders at one time is recorded by the USPS. Ran into this recently, I watched the clerk fill out the forms. Questions like do you know the purchaser.... Not sure if I had to provide my ID or not, certainly did NOT have to provide SSN.

Last time I tried to get a bunch of USPS MOs over $3K they demanded my SSN. I asked him if was illegal to require it and he said well then get your MOs somewhere else. Just make more than one trip...

Why is it that years ago it was $10K when $10k would actually buy most things. Today its smaller amounts and the money today is worth like 1/4 what it use to be worth....

 

[50Cal Indian]

Why is it that years ago it was $10K when $10k would actually buy most things. Today its smaller amounts and the money today is worth like 1/4 what it use to be worth....

Because you need to give the government their share of any money you make. Then they can pay for all the handouts to stay in office. 🤪🤣

 

[Kirby]

Banks have been reporting well over what they are required to for a long time. This is to keep them safe in the regulations. $10,000 plus quickly turned in to $2,500. they just don't ask for your ID at the same time any more.

Recently I found out much to my surprise that my bank reports any transactions over $3000 even though the government criteria is $10,000.

 

[JMIKLS@HOTMAIL.COM]

As this may help some, with using PayPal in particular, can and does have a business set up, for a "C Corp" Filing a Form 1120, or a Multi Member L.L.C., also filing a Form 1120, to set up an account with them.

The set up process is a little slower, and the do want the Companies EIN #, and the usual Co. info for their records, but that means that any sales proceeds on their platform are then reported by them as "Company income", and not as any "individual income" of any person. ( and their customer service for a Co. account is much more friendly and more useful as well. )

I have a client, who just recently had issue with them, when the client's gross sales with pay pal for the yr, had crossed $200K, the pay pal then wanted a Form W-9 also, to confirm the Co.'s EIN #, address and a fresh sig, on file with them, of the responsible co. rep.

Square, Ebay, and most of these services do have a business side to them, but you have to ask for it, and then patiently work through their odd setup process, to get it to work. But once it is working, it is then not reporting any sales as anyone's personal income.

As for the USPS MO's, once you cash or deposit those, your bank reports to IRS, depending on the amount that they use a threshold for reporting amount, and each bank/branch is different. For Example, in PHX AZ, if you go into a Post office to buy USPS MO, in cash, they will ask for your DL, at $2500.00 + -.

If you buy it with a credit or debit card, the may ask for other info, at $5000.00 + You can avid this by just getting several smaller USPS MO's under 2500 each in different post offices, or over several days in the same one... usually they do not care.

As for Other MO, MoneyGram is less of a pain, then Weston Union, if lost or misapplied, with MoneyGram you do have some usable recourse, but it is slow painful, and it is limited in time, as to the how long you have from the date of purchase, to be able to make your claim with them.

All of these transactions are reported, when you cash/deposit them in/with your bank, if the total amount reaches the bank's internal reporting threshold amount. Hope this helps some. Jim

 

[amish-bob]

Regarding USPS PMO's, I have not seen anyone comment on the repercussions of cashing a PMO at the post office. My personal favorite feature of PMO's is being able to cash them directly at the PO rather than going thru my bank. My banks both say that these things still need to clear before funds are fully accessible, especially large dollar amounts. That time period still allows for things to "happen" where as cashing at the PO, it's a done deal

 

[redroth]

If the

Regarding USPS PMO's, I have not seen anyone comment on the repercussions of cashing a PMO at the post office. My personal favorite feature of PMO's is being able to cash them directly at the PO rather than going thru my bank. My banks both say that these things still need to clear before funds are fully accessible, especially large dollar amounts. That time period still allows for things to "happen" where as cashing at the PO, it's a done deal

If the money order is over $50 my post office never has enough cash to cash it.... Of course this is Los Angeles

 

[pa123guns]

Same deal here in PA. Though it’s usually anything over $200 they don’t have the cash available for.