Paypal 1099

derryb · February 15, 2012 12:36AM

anyone seen one yet?

Ahrensdad · February 15, 2012 12:44AM

I have not. Is there a dollar threshold at which they report? I remember reading that ebay had a $20,000 threshold, IIRC.

I report all my sales so this really is not an issue for me, but thanks for the heads up.

edited because my fingers got ahead of my brain.

Beernuts · February 15, 2012 1:01AM

According to Paypal you will only receive a 1099 if you received 200 payments AND over $20,000 gross. Both conditions must be met.

See here: Will PayPal report my sales to the IRS? Will I receive a 1099-k?

"Starting in 2011, PayPal is required by the IRS to report the sales of goods and services for customers who, in a single year receive:

More than $20,000, AND
200 or more payments.

The new IRS 6050W changes apply to all payment providers, including PayPal. This includes payments received after January 1, 2011, with the first reports sent to the IRS in early 2012."

NewParadigm · February 15, 2012 1:04AM

I got mine. I love have they put your cost basis at 0, as if I received them all for free.

TwoSides2aCoin · February 15, 2012 1:28AM

Yes... Now to figure out my purchases and add them to the cost of goods sold. Pay pal and ebay has always made my accounting simple. This new system makes it easier at tax time.

19Lyds · February 15, 2012 1:36AM

<< I got mine. I love have they put your cost basis at 0, as if I received them all for free. >>

I received mine as well.

The form is broken down by month.

emzee · February 15, 2012 1:36AM

I called paypal last week about this. Paypal rep was able to look up 2011 totals and confirm that I would not be getting a paypal 1099 (I was unsure).

Michael

derryb · February 15, 2012 1:46AM

<< 

<< I got mine. I love have they put your cost basis at 0, as if I received them all for free. >>

I received mine as well.

The form is broken down by month. >>

the monthly breakdown is probably required by IRS so they can get a handle on who is not paying quarterly taxes.

TwoSides2aCoin · February 15, 2012 1:58AM

<< 

<< 

<< I got mine. I love have they put your cost basis at 0, as if I received them all for free. >>

I received mine as well.

The form is broken down by month. >>

the monthly breakdown is probably required by IRS so they can get a handle on who is not paying quarterly taxes. >>

I doubt that. It's probably broken down because billing is on a 30 day cycle. They bill me like clockwork.

LindeDad · February 15, 2012 1:59AM

Love the way they say all we make though PayPal is profit.....

I think just from the rough figures I made about two hundered dollars selling coins last year but thats not what the 1099 says.

derryb · February 15, 2012 2:04AM

<< the monthly breakdown is probably required by IRS so they can get a handle on who is not paying quarterly taxes.
I doubt that. It's probably broken down because billing is on a 30 day cycle. They bill me like clockwork. >>

Your billing is from Ebay, not paypal. The IRS has a keen intereste in WHEN during the year the income was received - it allows them to penalize those not paying quarterly when required. They don't like you holding their money all year long and have IRS regulations that prevent you from doing so.

pf70collector · February 15, 2012 2:11AM

They don't like you holding their money all year long and have IRS regulations that prevent you from doing so.

Funny that they hold billions of taxpayer money each year and probably make money on it. Look at all 100s of billions in refunds they shell out each year. Do they put that money in Treasuries and make money on those that are due refunds?
I don't understand why people let the government hold their money each year so they can get a nice refund.

derryb · February 15, 2012 2:23AM

<< They don't like you holding their money all year long and have IRS regulations that prevent you from doing so.

Funny that they hold billions of taxpayer money each year and probably make money on it. Look at all 100s of billions in refunds they shell out each year. Do they put that money in Treasuries and make money on those that are due refunds?
I don't understand why people let the government hold their money each year so they can get a nice refund. >>

the taxpayer determines how much of HIS money the IRS holds all year long.

TwoSides2aCoin · February 15, 2012 3:00AM

Pay Pal and eBay are the same thing. I don't care how you slice and dice it. They both bill me.

silverman68 · February 15, 2012 3:07AM

My local coin dealer show me his for over $289,000. Not too shabby.

Russ · February 15, 2012 3:11AM

<< Love the way they say all we make though PayPal is profit.....

I think just from the rough figures I made about two hundered dollars selling coins last year but thats not what the 1099 says.

>>

The 1099 from PayPal, (like ALL 1099's), simply reports gross revenue. It's up to you to track expenses and deduct those when filing your return.

Russ, NCNE

derryb · February 15, 2012 3:12AM

Two different companies under one umbrella. EBay bills you for ebay fees, and paypal pays it if you have set up in ebay for funds to be paid from paypal. The only "bill" you get from paypal is for your paypal fees on a transaction and they are deducted automatically at the time incoming money is posted to your paypal account. Only paypal is required to send the 1099 because they are the only one collecting money from a third party on your behalf.

lkeigwin · February 15, 2012 3:18AM

Got mine too. No surprises.
Lance.

TwoSides2aCoin · February 15, 2012 3:26AM

This is the first year I got a 1099 from my merchant account in the B&M, too.
Of course, they're as simple as they always were. Income is income. Expense is expense. Reporting is required. Life is good. Today is my birthday so please post a coin and restore my faith in this place.

derryb · February 15, 2012 3:33AM

Happy B day

airplanenut · February 15, 2012 3:41AM

<< 

<< Love the way they say all we make though PayPal is profit.....

I think just from the rough figures I made about two hundered dollars selling coins last year but thats not what the 1099 says.

>>

The 1099 from PayPal, (like ALL 1099's), simply reports gross revenue. It's up to you to track expenses and deduct those when filing your return.

Russ, NCNE >>

What Russ said. This piece of paper did nothing but confirm that I keep good records.

derryb · February 15, 2012 3:48AM

called paypal, mine appears lost in the mail. told them to lose the IRS's copy as well.

TwoSides2aCoin · February 15, 2012 3:49AM

Thanks Jeremy.

I bought this from you and marked it up over 40%.

tyler267 · February 15, 2012 3:59AM

These are being reported gross, the numbers do not include fees or returns.

derryb · February 15, 2012 4:09AM

in paypal click on history > reports > 2011 financial summary to see a breakdown that includes your total fees. If filing a Schedule D (investment income) you will need the individual fee (as well as other selling expenses) for each line item you enter on the Form 8949. Individual paypal fees are on each details page in paypal.

jdimmick · February 15, 2012 7:00AM

exactly,

I got mine 2 weeks ago, this just shows the amount paypal recived on your behalf on a monthly basis, also got one from the Bank in which the Credit card machine transactions are done in the store.
Its up to you to have your cost basis which of course I do.

jim

JazzmanJAB · February 15, 2012 8:14AM

Today is my birthday so please post a coin and restore my faith in this place. >>

Happy Birthday TwoSides2aCoin !

Many More to You !

lkeigwin · February 15, 2012 9:03AM

<< Today is my birthday so please post a coin and restore my faith in this place. >>

Happy Birthday, Joe. Tell us how old you are and we'll post a coin with your birth year. Maybe a Barber series? LOL.
Lance.

notwilight · February 15, 2012 9:33AM

<< I got mine. I love have they put your cost basis at 0, as if I received them all for free. >>

I wanna shop where you shop.

Paypal 1099

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