NEW 2011 IRS PAYPAL LAW, 200 TRANSACTIONS HELP

Dynamite_Deals
Contributor
Contributor

HI,

 

I am just wondering what they mean by each transaction, does this includes all bank transfers? Personal payments? ATM withdrawalS, ETC. . . .? Or only counts towards the 200 transactions for only money received for an sale and a fee have been deducted, for instance a sale through eBay?  I transfer funds into my bank account weekly sometimes twice a week.  I just want to make sure if these count towards the transaction count or not.  Also same for the ATM withdrawal does it count towards the 200 limit as well?

 

Thanks!

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37 REPLIES 37

lisistheone
New Community Member

how can i make a withdrawl from a credit card (debit) from my another bank account (both registered thru pay pal) and not have to wait ... a instant transaction???

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JunkmanJim
Contributor
Contributor

I have not been able to find a reference to the Democratic push for lower reporting requirements regarding Paypal. I can only find the 2011 law. Where did you hear about this?

   Thanks, Jim

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Windyman55
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Contributor

The bill has been signed since bush was in office, Ebay sent out letters to all sellers and buyers months before that asking everyone to sign an email protest form. 

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Windyman55
Contributor
Contributor

You need to look at who signed this bill partner. It was one of the last things that Bush did before leaving office.


@BigKahuna97 wrote:

From my understanding the 200 transactions are only counted from the number of payments you receive from other PP members.  This does not include transfers to your bank account or ATM withdraws.  

 

Be warned that Dem's want anyone making over $2200-2400 a year on PP to be taxed on it, even if it's Intl.  If you earn over that amount on PP a year just be warned that it will be submitted to IRS anyway so don't worry about the K9.  This means keep 25% Fed plus 8%-12% State (depending on your state and NY and CA will be slightly higher) for tax purposes.  This is the amount you must pay in taxes only from profit so don't count the amount you were paid.

 

Wish the news sounded better but considering how many new taxes the Dems have pushed.....it could be worse.


 

CHECK YOUR DATES...LOL

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AUSTINDEVIN
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Contributor

so when i go to my tax person i need to have my 1099 from paypal,then what i paid for each item and my fee list,shipping prices paid,and a list of all other deductions.i pay sales tax on each item when i purchase it from places.so does this mean i am exempt from paying sales tax plus i 99% of the time ship the item out of state.i do not keep very good records,but have been turning ebay in for a while but as ebay not paypal.so does this mean i just have to turn in paypal and not ebay????thanks for all info in advance.

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Dynamite_Deals
Contributor
Contributor

I am VERY bad on keeping  all the records i had from all my purchases, from what i paid for items and my inventory list, all i have left to show is what i paid for shipping and fees from ebay and paypal. . . .i've been selling here and there on ebay for 2 years now and i have never received any forms from paypal or any notice from the IRS YET!!, i think the year 2011 paypal will enforce the reporting of earnings more seriously.  Does paypal automatically send the 1099 forms? or do i have to fill one out when i do my w2 forms, I also work full time too . . .and every year my accoutant take care of all my taxing, Will i be audited for the year 2010? i've been doing the same for 2009 and did not get audited, but i'm a little worried for 2010. Can anyone let me know what to do?  Because i'm not earning much on ebay anyways, I am thinking of just stop selling once and for all, due to these complicated irs ripping our hardworking americans trying to earn an extra buck to support our families!

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temp01192011
Member
Member

I have sold some items on EBAY this year.  The first year.  I most likely lost money.  EBAY fees and PAYPAL fees etc.  I do it as a hobby.  Try to break even and allow others to find items they want.  If I set it up as a business...the extra cost will make sure I lose money.  Now I file my return as a business two things happen....First I get more money back from IRS because I lost money as a business.  Thus they lose money.  Second IRS will say you can't run a business that loses money.  So that leaves the question?  Are there intelligent lifeforms in Washington, DC?????

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Dynamite_Deals
Contributor
Contributor

That is exactly what happened to me this year, and i am thinking of stop it for good this year.  and i didn't keep any records to prove any lost either, and I don't even know what to do if they tax me on the transactions!!!

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numismattica
Contributor
Contributor

How do I have paypal send the 1099 to my corporation instead of my personal social seciruty #??

 

 

  I have been filing my eBay/paypal sales through this for years but never had a 1099 that was issued... Anyone else have this situation??

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jasper
New Community Member

IN RESPONSE TO THE POLITICAL ASPECT OF THESE QUESTIONS, WHEN YOU HAVE MORE GOVERNMENT OVERSIGHT THAN YOU HAD BEFORE MAKING LIFE MORE DIFFICULT FOR THE CITIZENS THAT USE PAYPAL WHO IS RESPONSIBLE? MOST OF US PAY OUR TAXES. BUT NOW MOST OF US ARE GOING TO HAVE TO GET AN ACCOUNTANT EVEN IF AFTER ALL IS SAID AND DONE YOUR TAX BURDEN WILL BE VERY SMALL AFTER ALL THE EBAY PAPAL AND SHIPPING CHARGES ARE DEDUCTED. FOR SELLING 200 ITEMS YOU PRACTICALLY BREAK EVEN  . NOW AFTER AN ACCOUNTANT IS ADDED MOST PROBABLY A LOSSES INSTEAD OF HAVING FUN WITH THIS AND MAYBE A LITTLE EXTRA MONEY IT BECOMES SMALL BUSINESS WITH HEADACHES. THE PERSON WHO CLAIMS HE ISN'T POLITICALLY CONNECTED SHOULD WELCOME THE CRITISM  OF THE PARTY THAT   CAUSED THE CREATING OF THIS LAW. NO MATTER WHAT PARTY IS RESPONSIBLE. THIS LAW DIDN'T COME OUT OF THE AIR SOMEONE SOMEWHERE WROTE IT. BUT PROBABLY NONE OF OUR CONGRESSMAN WHO DIDN'T READ THE BILL. LETS NOT BLAME THEM.  JASPER

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