Snookonfly Posted January 3, 2022 Report Share Posted January 3, 2022 Saw this post on another forum.... A provision in the American Rescue Plan Act of 2021, makes it that starting 2022, if an electronic payment facilitator makes payments totaling more than $600 in a calendar year to a payee, it will be required to report those payments on a Form 1099-K. Taxable income unless payee can show a qualifying loss. 2021 and years past, 3rd party payment facilitators were only subject to reporting when the amount paid to a single payee during a calendar year exceeded $20,000 (most states), no more. Wondering how this could effect the buying and selling on the BM...I'm assuming this means PayPal will have to report cumulative transactions over $600 and we will have to claim sold bait money as income? That’s like 2 or 3 baits sold to have to report. Would FNF transactions have the same requirement? Curious if anyone has any details or knowledge? Jean-Luc and Swimb8ting_TheSouth 2 Quote Link to comment Share on other sites More sharing options...
SVT THUNDER Posted January 3, 2022 Report Share Posted January 3, 2022 (edited) I brought this up last year when it was written. G&S will be reported. F&F will not. That’s why so many of us went ahead last year and started selling F&F only. We just started doing it that way so people here knew our word was good. I’ve bought and sold F&F on almost every transaction I’ve ever made here. Smooth sailing for me. Zero issues. Edited January 3, 2022 by SVT THUNDER Spell browniez, Chuch10, slobaru_ and 8 others 11 Quote Link to comment Share on other sites More sharing options...
chefchris Posted January 3, 2022 Report Share Posted January 3, 2022 Friends and family doesnt count. A new tax rule will impact millions of small businesses in 2022. You can thank one small change buried in the American Rescue Plan Act of 2021. Let’s suppose you’re a small business owner or freelancer, and you get paid from a digital payment service like PayPal, Venmo, Zelle, Cash App or any third-party settlement provider that’s accepting credit cards on your behalf and putting money into your bank account. If those payments were for goods and services that you sold to customers, it was previously up to you to make sure you were reporting that income on your tax return. But now, beginning in 2022, if you receive more than $600 in total during the course of the year – regardless of how many customers are paying – your payment service is required to report that amount to the IRS. Tealsprig and basskickinrednick 2 Quote Link to comment Share on other sites More sharing options...
Jim137a Posted January 3, 2022 Report Share Posted January 3, 2022 …….just saying if you pay G & S I’m sure the government will spend / invest the tax revenue in our best interest as Americans. Also, for you unsavory criminal types that lurk here there’s a few more IRS rules that are being implemented basskickinrednick, JacksonF, NEbucketmouth19 and 10 others 13 Quote Link to comment Share on other sites More sharing options...
SumoNinja Posted January 4, 2022 Report Share Posted January 4, 2022 Yea since this news broke here last year I started doing ff only. When someone pms me they want my bait I again reiterate that I take ff only before giving my PayPal. They can proceed or decline. So far everyone I've sold to has done ff with no issues. I also offer full insurance and tell them if the package gets lost I refund them and deal with the post office myself. Luckily everything's been smooth so far. Jim137a, SVT THUNDER, marc626 and 6 others 9 Quote Link to comment Share on other sites More sharing options...
StriperAddict Posted January 4, 2022 Report Share Posted January 4, 2022 1 hour ago, chefchris said: Friends and family doesnt count. A new tax rule will impact millions of small businesses in 2022. You can thank one small change buried in the American Rescue Plan Act of 2021. Let’s suppose you’re a small business owner or freelancer, and you get paid from a digital payment service like PayPal, Venmo, Zelle, Cash App or any third-party settlement provider that’s accepting credit cards on your behalf and putting money into your bank account. If those payments were for goods and services that you sold to customers, it was previously up to you to make sure you were reporting that income on your tax return. But now, beginning in 2022, if you receive more than $600 in total during the course of the year – regardless of how many customers are paying – your payment service is required to report that amount to the IRS. To my knowledge zelle dosent have an option for friends/family or not. If thats the case how can we know f&f isnt also taxable via paypal? Quote Link to comment Share on other sites More sharing options...
Snookonfly Posted January 4, 2022 Author Report Share Posted January 4, 2022 This change towards FnF definitely changes the game for the legit newbie seller on SU that have no history or reputation. It also changes the game for the standard SU buyers who have always been most comfortable buying G&S. In the past, G&S had always been the SU norm. Now it sounds like FnF will have to be more or even mainly accepted. I always liked FnF for when I know the person personally or have an idea who you are buying from and they have a decent SU reputation. Example…I’d have no problem buying FnF from you guys (SVT, Chef or Sumo) But I imagine this change to the tax requirement along with the cultural impact it will have on SU toward FnF will make it harder for the legit sellers who aren’t as high volume sellers/don’t have the built up rep yet to connect with wearier buyers. Could put the sellers with reputation in a great spot. browniez, Jzxmnky, Jean-Luc and 2 others 5 Quote Link to comment Share on other sites More sharing options...
Snookonfly Posted January 4, 2022 Author Report Share Posted January 4, 2022 13 minutes ago, StriperAddict said: To my knowledge zelle dosent have an option for friends/family or not. If thats the case how can we know f&f isnt also taxable via paypal? Zelle will probably have to send you the 1099 and you wouldn’t have to report to if you didn’t make a profit off the bait or it was a personal transaction. I think from the govs perspective, the 1099 is just an information report and the filer would be responsible for the tax liability IF the transaction deems it by their definitions. Quote Link to comment Share on other sites More sharing options...
chefchris Posted January 4, 2022 Report Share Posted January 4, 2022 one thing ive done with new sellers that want f&f is exchange cell numbers, get the IG account, real name/address and any other contact info you can, that seems to work well, i think most guys on here are legit or know someone on the site personally that will/can vouch for them. still a gamble, but that way has worked for me. Jzxmnky, Shaddaddy1979, Joeyberry4 and 3 others 6 Quote Link to comment Share on other sites More sharing options...
Mossypumpkin Posted January 4, 2022 Report Share Posted January 4, 2022 2 hours ago, Jim137a said: …….just saying if you pay G & S I’m sure the government will spend / invest the tax revenue in our best interest as Americans. Also, for you unsavory criminal types that lurk here there’s a few more IRS rules that are being implemented What. The. Fuuuuuck?! Hahaha….make sure you guys report those drug deals and petty thefts lol. Unreal.. On another note, you always check background before sending F&F. That’s all I’ve ever used and never been burned. Check feedback. See how long they’ve been a member. Do they participate in areas of the forum other than the black market. Facebook creep them if you have to. Usually a persons overall participation on the forum will give you an idea. And if someone is scamming people, they’re not gonna be a member long before getting the boot. If I see someone has been here a few years, they’re probably legit. Jean-Luc, Jzxmnky, Take My Money and 2 others 5 Quote Link to comment Share on other sites More sharing options...
Jim137a Posted January 4, 2022 Report Share Posted January 4, 2022 55 minutes ago, Mossypumpkin said: What. The. Fuuuuuck?! Hahaha….make sure you guys report those drug deals and petty thefts lol. Unreal.. On another note, you always check background before sending F&F. That’s all I’ve ever used and never been burned. Check feedback. See how long they’ve been a member. Do they participate in areas of the forum other than the black market. Facebook creep them if you have to. Usually a persons overall participation on the forum will give you an idea. And if someone is scamming people, they’re not gonna be a member long before getting the boot. If I see someone has been here a few years, they’re probably legit. Also, if you do steal something return it the same year or you get taxed on it lol. Mossypumpkin and SVT THUNDER 2 Quote Link to comment Share on other sites More sharing options...
StriperAddict Posted January 4, 2022 Report Share Posted January 4, 2022 From what I have read on the new tax law all of these places are reporting all activity be it friends/family or goods. Obviously goods is automatic taxable once you hit $600. BUT if you get audited all of the friends and family transactions will need to be proven no profit was made in order to avoid taxes. I guess we all better keep any reciepts etc. Gonna really put a hurting on the flippers getting double retail+ and cant show a loss or break even point. Now we see why the IRS hired 90k new auditers if thats true Looks like check and miney orders through the mail is making a comeback. Bait sales gonna take 3 weeks to complete Quote Link to comment Share on other sites More sharing options...
Mossypumpkin Posted January 4, 2022 Report Share Posted January 4, 2022 So here’s an argument…..how can they make you provide receipts for baits you’re selling that you purchased prior to this law? Further, most of us buy baits used/secondhand. Do we all need to start writing receipts to send with our baits we sell? Ridiculous… Quote Link to comment Share on other sites More sharing options...
StriperAddict Posted January 4, 2022 Report Share Posted January 4, 2022 12 minutes ago, Mossypumpkin said: So here’s an argument…..how can they make you provide receipts for baits you’re selling that you purchased prior to this law? Further, most of us buy baits used/secondhand. Do we all need to start writing receipts to send with our baits we sell? Ridiculous… I agree 100%. Its madddening as hell. Every dollar is already taxed to oblivion as is but they need to dip their hands in our wallets 1 more time Just posting what I took from reading up and hoping someone can show Im wrong Mossypumpkin 1 Quote Link to comment Share on other sites More sharing options...
tuxedomask Posted January 5, 2022 Report Share Posted January 5, 2022 So I assume this effects both sellers and buyers if they go over the 600 dollar mark? Does it work when you do a one time purchase less than 600? Or does it only effect the sellers? Quote Link to comment Share on other sites More sharing options...
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