I know for sure some of us are moving more than $600 of yo-yos, so be sure to keep an eye out for that tax form!!!
I also think the following is valid:
repcheck already exists; Therefore, transactions are made through cryptocurrency, preferably bitcoin, ethereum, etc it would be the same as an f&f.
citing only paypal; I believe it will only impact G&S, right?
Is this the year it finally sticks? The IRS has been trying to lower the limit to $600 for a few years already and it always gets delayed. Hoping it gets delayed again
He discusses that at the end, this year it’s $5k
I’m pretty sure this is set to decrease over the next few years so this year it’ll be 2k and so on till 600 in 2027 or whatever.
Maybe I read something wrong. Either way it’ll make some reluctant to sell
Edit:
The more I read the more it looks like 600 is the reporting threshold and 5k this year is the taxable threshold with that taxable inner dropping every year for the next three years till it gets to 600. This of course can change with the new administration and all that but is the course today. Of course non of this is tax advice and I’m just reading stuff you can find too so I would do my own research but it’s coming.
So an update to this that will be interesting to all and should reduce the folks that demand F&F and honestly help many makers and small sellers like folks that sell cws and various limited hand made accessory and or small run wood throws and such. Heck even the 3d printers
Irs site hasn’t updated yet but they are notoriously slow and the BBB is what instigates this.
New 1099-K reporting thresholds
The reporting requirements for payment apps and online marketplaces have been adjusted again for the 2024 and 2025 tax years.
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For tax year 2024: The threshold is $5,000, with no minimum transaction count. Third-party processors will issue a Form 1099-K if a seller’s total payments exceed this amount.
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For tax year 2025: The reporting threshold for third-party payment networks will revert to the original levels of over $20,000 in gross payments and more than 200 transactions. This change is the result of the One Big, Beautiful Bill Act and replaces the previously planned $2,500 threshold.
Let’s keep this thread on topic. Personally I have many issues with several other parts of that bill and what the administration is doing but this small win will help small businesses. I still worry about other factors and impacts that will force consolidation but we won’t go into that here…
This is beautiful news!
It’s still worrying how Paypal enforces their own transaction policy. Hopefully they will lighten the eff up because I know of a few folks that have had their accounts frozen (with tons of cash in them) because they either sold too much in a month or they, for some reason, think the transactions are fraudulent without actually reviewing them. They are super fishy for small businesses.
This is awesome news. Hopefully they leave it the heck alone now
Some of that is also money laundering enforcement which is different and probably won’t change. Especially with lots of transactions between foreign entities outside of your home country. Even this administration isn’t going to loosen up on stuff like that.
Allot of those transactions get lumped in with assumptions that they might be more elicit in nature and PayPal in the end is just trying to ensure they don’t get hit with any penalty for not enforcing anti money laundering laws and get treated like a trafficking (of any kind) enabler so they go more strict and aggressive than the federal standard to stay off the radar.
If your transactions are more in your own country of origin and mostly buying or selling only it will look more legit to them but if your f&f money back and fourth in and out of the country between a bunch of different people it’s going to look suspicious and get flagged
Good to finally see some sanity return
Wow I been expecting to have to pay taxes on eBay this year and wasn’t looking forward to it. Nice.
Certainly understand that especially with doing international transactions and with high volume international sales but my post was more about domestic small business transactions using a storefront like Etsy, BigCartel, Shopify, Square space, etc. The ones I mentioned were pretty low volume and sold within the US.
One person sells cutting boards they make and during holiday seasons their sales volumes increase a bit but it’s nowhere near the volume that would be seen as being suspicious. We’re talking, they maybe make and sell 30 - 50 pieces a month and then during peak holiday sales, they’ll move maybe 60 to 80 pieces, maybe a 100 if they are really pumping them out. It’s that low of volume.
Suddenly the account was frozen for 4 months! With no answers other than they were suddenly in violation. But Paypal couldn’t explain why or wouldn’t give any reasons why. They refused to look into it, even though they had verifiable proof these were real transactions from their Etsy account. The account they had been using for several years at this point. They ended up losing tons of money because of it and it almost ruined their business because of how tight things were getting. They ended up moving to stripe to process their payments and haven’t had an issue since. Their only complaint is they take 2.9% vs paypal’s 2.4% and they have a charge back fee.
My sister also had this happen to her, she runs an etsy where she makes soaps and candles and incense and stuff like that. She’d been operating for over two years or more ( I don’t remember how long she’s been doing it) with no issues, doing everything by the book. One day paypal decided they didn’t like that she tried to cash out her paypal balance to the bank account that was associated with her paypal account - the account she’s had for years before ever opening her etsy, but has also been using to also process her etsy payments the entire time.
She tried to transfer $500 and it flagged and locked her account. She had done up to 1,000 sales previously and had transferred more than $500 on several occasions. We’re talking, like in total, 40k in sales over the couple of years she had her etsy account. Suddenly a $500 transaction from her balance, not new sales. is what gets her account held at ransom basically. Something she’s done many times before and paypal had records of it. It too, took her about 2 months to get the situation rectified because she had to call paypal endlessly to get a human to look into the situation.
I know of other folks who have thousands of transactions per month, domestic and international and they’ve never had an issue. It’s just crazy how selective it is.
That’s the thing though. Most of these flags are automated and honestly paypal has terrible customer service. If you have a steady set of sales and then a spike it could get auto flagged and then PP just has terrible service for fixing such flagging. I get it and I agree it’s dumb but PayPal is the largest transaction platform globally for small business and sadly it paints a target on them as the government tries to point fingers at who is enabling drug trafficking. Reality coinbase is more at fault in that regard and even then honestly criminal organizations have found more interesting ways to get around all this but law doesn’t keep up so for now money laundering laws are tight and PP will keep auto flagging accounts just like YouTube auto flags copyright indiscriminately.