Super Sunday Storm Question?

thedutymon

Storm,

With the new E-Bay Paypal Tax situation, my question is, as I am steering as much of my stuff away from them as I can, I still am recieving a lot of payments via Paypal Gift. Does Paypal Gift apply towards the 200 transaction & 20K limits applied?
As these Gift transactions do not have an E-Bay transaction to tie to them, I would think not, but does it still add to your 20K or is that 20K only for transactions that have both (E-Bay/Paypal) tied together?

Thanks
Neil

CrazyMind2017

Anyone can gift you up to $13K a year with no tax implication for anybody, so I would be absolutely shocked if transactions recorded as gifts have any tax implication. Just make sure you don't accept more than $13K in gifts from an individual in any given year.

storm888

If you receive a gift, you will not need to report this on your return
PROVIDED it is a true gift and not any type of payment.


Neither the Service nor PP are oblivious to the PP-gift issue. Everyone
should expect that the Service will issue a stern letter on the matter,
sometime in 2011.

"A rose by any other name is still a rose." (Variant of Shakespeare.)

Folks - even the most sophisticated folks - who try to get too clever
with "definitions" in their dealings with the Service will ALWAYS fail.

The Sevice could NOT care less if PP gets ripped by the "gift loophole,"
but the Service will NOT allow itself to be ripped by that evasion.


..............................

Since the end-users of ALL goods and services pay ALL taxes, the best
way for sellers to "fightback" is to raise prices; that is how the BIG boys
do it.














...

fergie23

Neil,
It seems to me that you are running a business. You have detailed numerous transactions where you have made hundreds if not thousands of dollars by being savvy on eBay, uncovering hidden gems and grading as appropriate. From all you have posted you seem to have made quite a bit of money. I am still confused why you feel that you shouldn't have to pay taxes on this income? If you were buying unopened then opening and having your purchases lose 90% of their value and then just trying to recoup some small portion of your losses by grading and selling it seems to me it would be an entirely different scenario (ie a loss rather than a profit). However, you put in the time and effort to make a profit. If you put in the same amount of time and effort trading stocks rather than cards wouldn't you expect to have to pay taxes on any profits you made?

I own an IT consulting company and it shocks me how far many other small business owners I have met go to avoid paying taxes. If every person and company simply paid their fair share we would all pay less in taxes. After learning how easy it is to shelter your income when you own a company due to the multitude of tax breaks out there (my brother is a CPA) I believe the whole tax code needs to be revamped with lower rates and pretty much all deductions eliminated (those being at worst revenue neutral).

And to make it card related here is a scan of a recent pickup for my HOF Hockey RC Collection:




Robb