Paypal & the IRS

iwakuralain16 · Post by **iwakuralain16** » Wed Jun 25, 2008 2:24 am

I put this under ebay... since they own paypal. O_O LOL

So.. I know in this hobby you buy some cels.. and then you sell some cels. Buy a cel for a few hundred and sell a cel for a few hundred... I for one do not claim this on my taxes. Dont really claim anything I sell on ebay or outside auctions. Nor do I keep track on how much I paid for the items and thens ell them for(for smaller random stuff i find to sell in my home).

That may bite me in the ass very soon. look what they slipped into that damn foreclosure bill.

http://rpc.senate.gov/public/_files/L62 ... 0618SN.pdf

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.

Found this information on
http://www.powersellersunite.com/about2 ... asc-0.html

So what do you guys think about this?

beatrush · Post by **beatrush** » Wed Jun 25, 2008 8:29 am

Revenue Canada Already requires us to claim any profit made from ebay as part of our income.

Though it was mostly aimed at large Canadian ebay stores and not the Grandma Murdel selling her knitted blanket.

kenshikenji · Post by **kenshikenji** » Wed Jun 25, 2008 8:30 am

im for tax abolitionist and an anarchist. It does not surprise me in the least to see that government thinks that they are entitled to every penny we make . I just hope if they are able to enforce this that we will be able to claim our losses as well.

hell, we need to make a 10% profit just to keep up with inflation.

me, ill practice tax avoidance and evasion anytime i can

toonybabe · Post by **toonybabe** » Wed Jun 25, 2008 1:04 pm

Just when you thought you hated the IRS, there's a movie out on the internet that will make you hate them more. Has anyone else here on AB seen Aaron Russo's Freedom to Fascism?

You can watch it on Google Video or YouTube, but if anyone wants to send me a PM, I could mail you a copy.

But, ya, of course the IRS would go after people on Ebay/Paypal. I'm glad I don't sell stuff on Ebay often enough to have much of an income from it.

cutiebunny · Post by **cutiebunny** » Wed Jun 25, 2008 1:30 pm

I'm one of those people who can not do her taxes without the help of others. I tried doing it by myself in college and got audited

So, I pay to have mine done every year.

I've always been told, despite keeping a fairly accurate record of how much money I make as a profit on E-bay, that it's considered to be a 'hobby' and hence, you don't have to report it. I never make any significant income from E-bay, so, they tell me it really doesn't matter.

I don't like this little rider that they've attached to the bill, though.

iwakuralain16 · Post by **iwakuralain16** » Wed Jun 25, 2008 4:57 pm

The link that I posted also discusses about hobbies and so forth. According to a guy on there it does count and you should report it. I do not know anything about about taxes myself. really. O_O All i can think of is "damn those people who bought houses that couldn't afford it and are the reason such a bill has to be made" but then again.. they would have added it as pork to another bill later anyways. *sighs*

Moop · Post by **Moop** » Wed Jun 25, 2008 8:12 pm

This will almost certainly be the last straw for a lot of people as far as using eBay/PayPal - which means that there may be a notable drop in the conglomerate's profitability...which also means that they won't be paying as much in taxes. Between that and the decrease in taxpayers who use their services (and therefore won't be paying any taxes based on said services), I wonder if the IRS's gross intake will really be anywhere near as high as they're estimating.

miz ducky · Post by **miz ducky** » Thu Jun 26, 2008 5:44 pm

I was under the impression from talking to other people that if you sold enough on ebay that you had to claim it.

I'm pretty sure that people who make their living on it and use it to run a business were already required to account for that income.

But, I've never been in that position, so I could be mistaken.

kenshikenji · Post by **kenshikenji** » Thu Jun 26, 2008 7:54 pm

toonybabe wrote:Just when you thought you hated the IRS, there's a movie out on the internet that will make you hate them more. Has anyone else here on AB seen Aaron Russo's Freedom to Fascism?

You can watch it on Google Video or YouTube, but if anyone wants to send me a PM, I could mail you a copy.

But, ya, of course the IRS would go after people on Ebay/Paypal. I'm glad I don't sell stuff on Ebay often enough to have much of an income from it.

sounds right up my alley, pm sent!

kira · Post by **kira** » Wed Jul 02, 2008 5:06 pm

i'm not gonna try and read through that, it'd hurt my head.

yeah, i remember asking a beta member this once. thry said that if your jsut selling small stuff not to worry about it. so i'm not going to worry.

iwakuralain16 · Post by **iwakuralain16** » Wed Jul 02, 2008 6:32 pm

kira wrote:i'm not gonna try and read through that, it'd hurt my head.

yeah, i remember asking a beta member this once. thry said that if your jsut selling small stuff not to worry about it. so i'm not going to worry.

You would generally have to pay taxes on the amount that you made from selling the item. But what if you can not prove you bought something for $100 and when you sold it for $150 you only made a $50 profit. how would you prove that? I guess you would have to keep records... which I dont. Paypal keeps records of auction IDs but those expire after awhile and thus are useless.