- 12/3/18
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Just saw this recently - new for 2023 the IRS is requiring third party services like PayPal and Venmo, etc. to report sales totaling more than $600 a year using form 1099-K. This is a drastic change from 2022 when the reporting threshold was $20,000 or 200 transactions.
I've looked at the form and the instructions. There are lots of details of course. For example with PayPal it applies to Goods and Services but not to Friends and Family payments. Also there are determinations to be made as to taxability of an incoming payment. Was the item sold at a profit or a loss? Obviously we don't sell at a profit but it's not clear how or if you must claim (or prove if audited) a basis amount for when you purchased (or made) the item that would substantiate selling it at a loss. For watchmakers and vendors, this looks to me like services paid for under PP G&S could be considered taxable income.
@watchservicesny
@Oascom
@WatchSmith.US
@PsychoTee16
@katt
@bklm1234
In any case this is unwelcome involvement in our sales and services by the IRS so I just wanted everyone to be aware. Do your own research and decide what's best for you.
www.paypal.com
I've looked at the form and the instructions. There are lots of details of course. For example with PayPal it applies to Goods and Services but not to Friends and Family payments. Also there are determinations to be made as to taxability of an incoming payment. Was the item sold at a profit or a loss? Obviously we don't sell at a profit but it's not clear how or if you must claim (or prove if audited) a basis amount for when you purchased (or made) the item that would substantiate selling it at a loss. For watchmakers and vendors, this looks to me like services paid for under PP G&S could be considered taxable income.
@watchservicesny
@Oascom
@WatchSmith.US
@PsychoTee16
@katt
@bklm1234
In any case this is unwelcome involvement in our sales and services by the IRS so I just wanted everyone to be aware. Do your own research and decide what's best for you.
Will PayPal report my sales to the IRS? | PayPal US
IRS new reporting requirement for payments for goods and services lowers the threshold to $600 USD starting in 2024. PayPal will report these transactions.
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