Goods and services is considered a business transaction and will trigger eBay and PayPal to send a 1099 k . eBay already told me I am getting one next year
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Yea Venmo and all the other ones also. My girlfriend got a message from Venmo about it. 20,000 was the old number. The new number is $600. It was supposed to start last year but they held it off to give people and companies like turbo tax and H&R Block a chance to make the changes to their software. Just Google search the American rescue plan of 2021. You don’t have to be a tax expert to use google…
I am not operating a business this $600 maximum is for anyone who uses gs and goes over $600 they will just start treating the transactions like you are a business. I have read all the info and know where I stand and i also know the law was postponed but is in effect for 2023. I am not looking for a debate on the issue like I said i know where I stand and am not going to start filling out extra paperwork for the irs for selling items second hand i have already paid retial price tax on. If that does not work for some people then they need to just find another seller that they are more comfortable with.
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It’s up to the sellers right to ask for one or the other. If you have a good reputation and build that then I don’t see any problems asking for friends and family. No buyer has to accept that. I will also note, I’ve had a payment come from goods and services and PayPal put my money on hold for no reason. Refunded and did a F&F payment and worked just fine. So now I personally have a problem with g&s in general.
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Using PayPal without F&F also charges a percentage of fees to the seller. I certainly understand being weary using it and I would never use f&f unless the seller had great feedback and is an active member here. Ultimately, it’s a preference and there is certainly risk involved. Personally, I always post in the listing that “f&f is preferred” but would accept g&s if fees were paid by the buyer.
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I could care less about the fees. I do care about trying to provide paperwork to the IRS on the roughly 50 yoyos I have already sold this year. That’s a lot of different transactions that I would have prove were at break even or at a loss. Further, some of what I have sold have come from trades so I don’t have an easy way to provide that paperwork even if I was so inclined. I don’t need to make my life any more complicated than it already is especially with taxes.
People don’t last long as sellers in this community if they screw people over. Ask for a rep check. Or don’t buy from people that want F&F.
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All this brings to my mind is that the revolutionary war was fought over less.
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Only do F&F as I have enough I have to deal with complicated taxes as is.
Anyone who has issues with it just misses out on good yoyos I suppose 
especially with the amount of rep I’ve accumulated. I think most of y’all as friends and family by now anyways XD
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Not an accountant, but it seems like the actual true information posted in this topic is spread over multiple posts and ignored and/or forgotten.
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Regardless of whether you receive funds via friends and family or G&S, you are (afaik) required to report any gains/income you make on sales.
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Since most of the time sales are at a lower price than the item originally cost (or occasionally at the same price), there is no income, and therefore nothing to report, so accusing people of evading taxes is idiotic. I realize that some people probably do sell something at a higher price than they original price, but that’s got to be rare. I’ve sold a lot and I can’t remember that happening for me .
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despite #2, if you receive a 1099, you will have to deal with more paperwork to show or at least say that you made no income because the sales were at a loss. Interestingly, although you have to pay taxes on any income you make from selling personal items for a higher price than you bought them for, you can’t deduct any losses for sales that were less than you bought the item for (never mind allowing for inflation and the fact that the money from your sale is worth less than the money you originally made that purchase with).
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G&S provides a lot of protection for the buyer, the seller can be easily abused by that system if someone wants to be a scum.
Draw your own conclusions, but as a seller, I prefer F&F because of fees and the piece of mind that I won’t get any kind of dispute. If someone insisted on G&S despite my feedback, I’d probably only do it if they had good feedback here as well. Trust has to go both ways.
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