money transfers

[jkingrph]

USPS MO, Zelle, even personal checks, but you had better wait for them to clear. I dumped Paypal due to their discriminatory practices against the shooting community.

I just ordered a FWB 602 from a member here in Hawaii. Did a lot of correspondence via email, and he fully showed pictures and problems with the gun. I ended up sending a personal check which just arrived two days ago, and he shipped the gun yesterday. He said his wife wanted to wait until the check cleared and I cannot argue with that. I told him to remind her that I sent it in good faith. so apparently he shipped the day after receiving it, so not time to fully clear.

 

[techna]

Yes, the threshold for 2025 is a cumulative total of $2500. Same as for Venmo, Zelle, Cash App and other third party apps

Not Zelle though. There Is zero reporting to the IRS with Zelle transactions.

 

[Bedrock Bob]

Isn’t PayPal reporting to the IRS which likely forces you into a situation where you could be paying income tax on a transaction you’re actually taking a loss on?

No.

You are only taxed on income. If you take a loss on internet sales you don't have to pay tax on it. If you make money on internet sales you do.

They report sales in excess of a certain amount. If you are taking a loss on those sales you tell them that. As long as you can prove it's a loss you are good.

They are after people making money on the internet and not paying taxes. If your not making money it isn't an issue. If you are then it's taxable. It's always been that way. They are just beginning to enforce it.

 

[Avator]

It's $2500 for the remainder of 2025 and it will be $600 in 2026.

 

[techna]

No.

You are only taxed on income. If you take a loss on internet sales you don't have to pay tax on it. If you make money on internet sales you do.

They report sales in excess of a certain amount. If you are taking a loss on those sales you tell them that. As long as you can prove it's a loss you are good.

They are after people making money on the internet and not paying taxes. If your not making money it isn't an issue. If you are then it's taxable. It's always been that way. They are just beginning to enforce it.

Ah, but here's how it works... or at least how it DID work. If you sell a thing, you are required to prove that you did not make a profit on that thing. So if sell you a gun for $1K via PayPal payment and I have hit their reporting threshold (which I'm learning since my original post seems to have increased somewhat from what it was several years ago), AND I have no bill of sale or other means of proving what I originally paid, then I owe the tax on the full amount of what you paid. Had you paid Zelle, cash, or check, then its only an issue for me if there's an audit involved.

 

[SilentSquirrel]

I'm OK with all of this taxation stuff.
By the time I file for Tax Year 2025 I will be among the wealthiest percentile of the population and be exempt from income tax

 

[Bedrock Bob]

Ah, but here's how it works... or at least how it DID work. If you sell a thing, you are required to prove that you did not make a profit on that thing. So if sell you a gun for $1K via PayPal payment and I have hit their reporting threshold (which I'm learning since my original post seems to have increased somewhat from what it was several years ago), AND I have no bill of sale or other means of proving what I originally paid, then I owe the tax on the full amount of what you paid. Had you paid Zelle, cash, or check, then its only an issue for me if there's an audit involved.

No. That is incorrect.

It's only an issue if audit is involved no matter how you cut it.

If you are audited and you didn't profit then you simply explain it, and show the receipts.

Otherwise you just file your returns and tell them the truth. No questions.

Everyone that does internet business is in the same boat. Just file your tax return and claim the price you paid for the items you sold. Ask your tax person. They will tell you how to handle it. It's no big deal. If you are audited you show them the records. If your not profiting from internet sales then there is no tax. Simple as that.

 

[techna]

No. That is incorrect.

It's only an issue if audit is involved no matter how you cut it.

If you are audited and you didn't profit then you simply explain it, and show the receipts.

Otherwise you just file your returns and tell them the truth. No questions.

Everyone that does internet business is in the same boat. Just file your tax return and claim the price you paid for the items you sold. Ask your tax person. They will tell you how to handle it. It's no big deal. If you are audited you show them the records. If your not profiting from internet sales then there is no tax. Simple as that.

I’m not talking about business. And your personal return might be simple, but mine is not.

 

[Bedrock Bob]

I’m not talking about business. And your personal return might be simple, but mine is not.

No matter how complex it is you don't have to pay taxes on a loss. You do on profits. It's pretty simple. Just file the form and state the loss. It's no big deal.

 

[Firewalker]

I have a separate bank account set up at my bank that I use for Paypal. I only transfer enough into it to cover any Paypal transactions. If I receive money I transfer it to my bank.
I've been using Paypal for several years and have yet to have an issue. Matter of fact, they got my money back for me once when I got burned on an internet purchase.
Yep, I have heard horror stories from others but that has not been my experience. I don't have any experience with any other online money transfer apps.

I just lost $10 to a guy that claimed all 3 of my first class envelopes containing orings went missing and filed claim.

I almost stopped selling orings due to that douchin baggan.