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Pay Pal which means eBay and IRS 6050W startes 01/01/2011

Started by NewWorldOrder,

100 posts in this topic

blazingbob

blazingbob

Posted
Posted

I'm not really sure what's different to me since the IRS is probably looking for the person that doesn't report at all or is "shorting" their numbers. And frankly that can be done by the person who is buying and selling out of their business account. Unless they physically transfer the money into their business account it doesn't exist to the "books".

 

Since I'm already a business and report my sales and note where the payments are coming from it's not a big deal.

 

 

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Transplant

Transplant

Posted
Posted
+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

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namisgr

namisgr

Posted
Posted
+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

+3

 

Keep good records, and pay taxes on your profits. To do otherwise is to defraud the government.

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EastEnd

EastEnd

Posted
Posted

It's not just Ebay sales that Paypal will accumulate. In evaluating whether a Paypal account holder has met the $20k and 200 transactions thresholds for a given year, ALL Paypal transactions, including those on the CGC boards, will be counted. It tracks by social security number, not the forum on which the sale is made.

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Batty Scrooge

Batty Scrooge

Posted
Posted
+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

 

It's not a big deal at all to anyone, there is nothing about reporting purchases that would force you to show a net gain. I'm sure everyone is just going to report that they paid more for the goods they sold anyway.

 

It is more about recording the movement of large sums of money than collecting taxes. It's a part of the BSA (Bank Secrecy Act).

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Bosco685

Bosco685

Posted
Posted
It's not just Ebay sales that Paypal will accumulate. In evaluating whether a Paypal account holder has met the $20k and 200 transactions thresholds for a given year, ALL Paypal transactions, including those on the CGC boards, will be counted. It tracks by social security number, not the forum on which the sale is made.

 

I can see sales threads being reduced in 2011 with this bit of news and no "free" money.

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JiveTurkeyMoFo

JiveTurkeyMoFo

Posted
Posted
+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

+3

 

Keep good records, and pay taxes on your profits. To do otherwise is to defraud the government.

 

+ 4

 

I've had a seperate "business" checking account for years, and report my sales and pay my taxes on my proceeds.

 

I guess Bob was right, I am a dealer. :P

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Bosco685

Bosco685

Posted
Posted

Now isn't there a business reinvestment deduction, whereby if you make a sale but then reinvest the money within 30 days in new product you are not responsible for any or all the taxes?

 

An accountant friend was telling me about this a year ago, but with many of the changes to the tax laws I'm not sure if this is still around.

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Transplant

Transplant

Posted
Posted

A "Like Kind Exchange" is what I think you're thinking of. Most times it's used in real estate transactions for commercial or rental property. There are lots of regulations around it including, I think, using a third party to hold the proceeds of the first sale while the purchase is being completed. I'd be surprised if it applied here.

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wee_s2e-migration

wee_s2e-migration

Posted
Posted
+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

Comics are a commodity, thank god!

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DrWatson

DrWatson

Posted
Posted
A "Like Kind Exchange" is what I think you're thinking of. Most times it's used in real estate transactions for commercial or rental property. There are lots of regulations around it including, I think, using a third party to hold the proceeds of the first sale while the purchase is being completed.

That is correct. The person engaging in the exchange can not take possession of the funds in question. For lack of a better term, it is held in escrow. You don't see much of those anymore, unfortunately.

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Bosco685

Bosco685

Posted
Posted
A "Like Kind Exchange" is what I think you're thinking of. Most times it's used in real estate transactions for commercial or rental property. There are lots of regulations around it including, I think, using a third party to hold the proceeds of the first sale while the purchase is being completed.

That is correct. The person engaging in the exchange can not take possession of the funds in question. For lack of a better term, it is held in escrow. You don't see much of those anymore, unfortunately.

Thanks guys for the clarification.

 

(thumbs u

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blazingbob

blazingbob

Posted
Posted

I believe this is more a way to track "underground" economy e-commerce and to ensure that businesses are reporting their sales. I have heard in other businesses that the IRS wanted 1099's to be issued to your suppliers if you spend over a certain amount. Again if audited the IRS can compare the receiving companies 1099's plus other income to the businesses "Gross Amount" being reported.

 

As with accounting just because you sold $20K worth of stuff does not mean you pay taxes on that. You deduct the cost of goods sold, expenses and come up with your net income.

 

Clearly some of you will have to brush up on your Quickbook and accounting skills so that you can enter those debits and credits.

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blazingbob

blazingbob

Posted
Posted

I like this "Keep good records, and pay taxes on your profits. To do otherwise is to defraud the government". You are stating this to some people who use Paypal "personal" to conduct business transactions in order to defraud Paypal out of their fees. lol

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passion4comics

passion4comics

Posted
Posted

If I have a sale for a 25k comic and I come up with an original receipt of 30k I'm sure as hell going to now try to write off the 5k loss if they want to play that game.

 

If a collector spent on average $2 per comic over x years and sells his lot at 1/10th of that price which is pretty common I would this works both ways. The person can write off that $1.80 loss per book and up his sell price from .20 to .70 after factoring in the loss on his taxes.

 

Would this work?

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