New Bill Signed. New 1099 Rule for everyone selling online.

[SumoNinja]

Ff only, trusted sources only, or use agreed upon middle man I guess. This blows though. Extra hassle 

Scammers be like.....

[SVT THUNDER]

1 hour ago, SumoNinja said:

Ff only, trusted sources only, or use agreed upon middle man I guess. This blows though. Extra hassle 

Scammers be like.....

Literally told my wife last night this would play right into scammers hands. Not just for us in the Swimbait community but anything and everything sold/traded via web forums. 

[bassturds]

On 3/14/2021 at 12:44 PM, SVT THUNDER said:

Nope. Just sand. 

And purell 

[Gdimop96]

Anyone know if the same applies to Venmo?

[Swimbaitlife]

9 minutes ago, Gdimop96 said:

Anyone know if the same applies to Venmo?

I wouldn't think so because venmo does not charge any fee's like Paypal does when paying G&S. Is there even an option for G&S via venmo or is it all f&f?

Also pretty sure this bill is put into effect 2022.... Don't quote me on that though lol

Edited March 16, 2021 by Swimbaitlife

[rwp]

1 minute ago, Swimbaitlife said:

I wouldn't think so because venmo does not charge any fee's like Paypal does when paying G&S. Is there even an option for G&S via venmo or is it all f&f?

I'm not an accountant, or have any knowledge about anything really...... But here's my 2 cents.

Venmo has personal and business accounts.

Personal accounts are the same as PayPal friends/fam.

Business accounts are the same as PayPal good/services.

Paypal (and venmo, same company) can choose to send 1099s for any amount of any transaction type, as long as they are following federal and state laws. So, they could just start sending 1099s to everyone tomorrow if they wanted to.

I would 100% expect to see PayPal remove the fam/friends option, or start charging for it, they are going to take a massive hit as goods/services transactions go down because of this bill being passed.

I live in a state where the law was already $600, so I have been getting 1099s. The unfortunate news about this, even though PayPal didn't send 1099s to a lot of people, they were all required to claim that income.

Keep receipts, even on online accounts for what you buy. The majority of the stuff that we buy and sell, we lose money on. Buy a $200 bait, sell it for $150. By the end of the year, your $5000 1099 has $7500 of expenses, which could actually help your tax situation.

The key is to keep accurate and honest records of everything.

[SVT THUNDER]

1 hour ago, rwp said:

I'm not an accountant, or have any knowledge about anything really...... But here's my 2 cents.

Venmo has personal and business accounts.

Personal accounts are the same as PayPal friends/fam.

Business accounts are the same as PayPal good/services.

Paypal (and venmo, same company) can choose to send 1099s for any amount of any transaction type, as long as they are following federal and state laws. So, they could just start sending 1099s to everyone tomorrow if they wanted to.

I would 100% expect to see PayPal remove the fam/friends option, or start charging for it, they are going to take a massive hit as goods/services transactions go down because of this bill being passed.

I live in a state where the law was already $600, so I have been getting 1099s. The unfortunate news about this, even though PayPal didn't send 1099s to a lot of people, they were all required to claim that income.

Keep receipts, even on online accounts for what you buy. The majority of the stuff that we buy and sell, we lose money on. Buy a $200 bait, sell it for $150. By the end of the year, your $5000 1099 has $7500 of expenses, which could actually help your tax situation.

The key is to keep accurate and honest records of everything.

I believe this is what @Good Year 71was referring to on page 1. And yes, my spending has always exceeded my selling via PayPal. But I just sold a RM Mother Triple and another bait that has me ahead right now. Heck, I’ll use this advice on my wife if nothing else. "You see Babe, now I HAVE to buy more baits". 

[dqb]

Oh, my fishing hobby is a taxable business now? I’ll have to consult my CPA about expenses including inventory, supplies, miles traveled, and operating costs including but not limited to boat maintenance, gas, mooring, insurance, and repairs.

I think I may have inadvertently founded the most unsuccessful business of all time. 

[rwp]

6 hours ago, dqb said:

Oh, my fishing hobby is a taxable business now? I’ll have to consult my CPA about expenses including inventory, supplies, miles traveled, and operating costs including but not limited to boat maintenance, gas, mooring, insurance, and repairs.

I think I may have inadvertently founded the most unsuccessful business of all time. 

Unfortunately, probably not.

https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide

[Volfan]

For everyone that gets pissed about flippers, this should be a positive- it would at least minimally discourage constant buying/selling and driving up prices by people with no intention of fishing the baits. It would also tend to discourage ‘middle men’ buyers who similarly are buying as many of X as possible to make their own profits.

[tHeINFamoUS]

1 minute ago, Volfan said:

For everyone that gets pissed about flippers, this should be a positive- it would at least minimally discourage constant buying/selling and driving up prices by people with no intention of fishing the baits. It would also tend to discourage ‘middle men’ buyers who similarly are buying as many of X as possible to make their own profits.

Wishful thinking......flippers gonna flip, now they’re just gonna ask double retail, shipping, 4% PayPal fee and applicable taxes.  

It’s the average guy that’s gonna be out now.   The one that buys a bait and sells it at retail if he doesn’t like it.  No incentive to sell it if you’re gonna have to save paperwork or get dinged by Uncle Sam.  
 

 

[Volfan]

I’d be pretty shocked if the government comes after anyone doing casual sales of a few baits. This is much more directed at people operating an e-commerce business outside of guidelines.

[waynem]

Join the club guys.  Massachusetts (where I live) and Vermont have been the only 2 states in the US to have had this $600 limit in effect for a few years.  I've been reluctant to post up surplus baits on the Black Market asking for "friends & family" since I am the one who originally wrote the post that is pinned at the top of the Black Market page about "Be aware of sellers asking for F&F only".  Now we are all in the same boat.  I suspect Venmo won't be any different than PayPal since they are both owned by the same entity.  I think money orders or F&F may be the only way to go but I'm willing to listen to others on here.  I'm not one to flip baits for a profit so it sucks that I have not been able to sell a $100 bait to SU guys for anything close to $100 since I then have to pays income tax on it.  If people are going to go the money order route I may toss some baits up on BM.

Let's see if there are any other ideas from the SU community.

"Hi I'm from the government and here to help you."

[thedonnguyen]

there's always zelle I guess 

[SVT THUNDER]

2 hours ago, waynem said:

Join the club guys.  Massachusetts (where I live) and Vermont have been the only 2 states in the US to have had this $600 limit in effect for a few years.  I've been reluctant to post up surplus baits on the Black Market asking for "friends & family" since I am the one who originally wrote the post that is pinned at the top of the Black Market page about "Be aware of sellers asking for F&F only".  Now we are all in the same boat.  I suspect Venmo won't be any different than PayPal since they are both owned by the same entity.  I think money orders or F&F may be the only way to go but I'm willing to listen to others on here.  I'm not one to flip baits for a profit so it sucks that I have not been able to sell a $100 bait to SU guys for anything close to $100 since I then have to pays income tax on it.  If people are going to go the money order route I may toss some baits up on BM.

Let's see if there are any other ideas from the SU community.

"Hi I'm from the government and here to help you."

I’ve heard from others on different FB groups that they also had a $600 limit before having to file a 1099. So it’s going to be new to me. But I spend easily 5 times more than I sell these days on baits. Way back when the internet was new to most homes, I always sold via USPS money orders. As did about everyone until PayPal. I was allowed to sell some of my sponsors products. And I moved a lot of rods. So it was normal back then to mail a money order, wait for the seller to receive it, then cash and mail the rod/baits etc. I have no issue personally with receiving a money order for a sale. But that seems foreign to many in this day and age of technology when a login and push of a button sends funds immediately. 

What really gets me is the way the Gov. changes things like this stuffed in among hundreds of pages without announcing to the public what they’ve done. I don’t know anymore about how this will work or be enforced than anyone. But I’ve moved two baits in the span of 10 days that has me near the limit already. But I’ve spent double or more than that this year already. I guess we will all just have to wait and see how this goes.