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Paypal Venmo Third Party Payment Tax Reporting Delayed

conttador

conttador

Supporting Member
Jun 10, 2010
1,639
2,228
San Antonio, TX
#1
If you are looking to sell stuff between now and the end of the year you just caught a break if you’re using PayPal or any other payment apps for good & services:

IRS delays rule change for people who get paid on Venmo, Etsy, Airbnb and other apps | CNN Business

IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K | Internal Revenue Service

It sounds like if you sell something on or before 12/31/2022 you will not be getting a 1099-K. I wish this would have been announced sooner but… it is what it is…

Couldn’t find where to put this so please feel free to move.

I hope you find this helpful!

Happy selling,

V
 
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#3
Another user just alerted me to this, thought I'd share. Admins, if this is in the wrong spot or has been posted already please move, but I thought this would be very helpful for everyone selling on here to know. It looks like the IRS is "delaying" the implementation of the $600 1099 reporting threshold for third party payment sites. Just an FYI for all.

IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K | Internal Revenue Service
 
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#4
What I’m trying to understand is are all participating party’s of a transaction exceeding $600 subject to taxation/reporting? Or just those on the receiving end of said payment?

I hate this rule just on the basis of from a seller pov, having to further pay taxes on an item you’ve already paid taxes on in the initial purchase. It’s like the IRS is double dipping.
 
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#5
Halabja said:
What I’m trying to understand is are all participating party’s of a transaction exceeding $600 subject to taxation/reporting? Or just those on the receiving end of said payment?

I hate this rule just on the basis of from a seller pov, having to further pay taxes on an item you’ve already paid taxes on in the initial purchase. It’s like the IRS is double dipping.
Click to expand...

My understanding
friends and family transactions not reported
For example If you sold a used bass to someone on talkbass (not via friends and family) and sold it at a loss relative to what you paid no new taxes. Made a profit ,you need to pay taxes on the profits only. No double dipping.
 
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#6
pmatz2 said:
My understanding
friends and family transactions not reported
For example If you sold a used bass to someone on talkbass (not via friends and family) and sold it at a loss relative to what you paid no new taxes. Made a profit ,you need to pay taxes on the profits only. No double dipping.
Click to expand...
The problem is you have to be able to prove you sold it for a loss. (You would need the original receipt). It creates a huge burden one someone who just wants to try new gear out.
 
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#11
This is the actual fed publication by the IRS … posting again in case you missed the 1st link by @gt96g

IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K | Internal Revenue Service

Just be careful about how this is delivered by the news media. Right now, the only “official” word is that there is a delay in reporting. Officially, the $600 figure has not changed, although there is a push for a higher ceiling. The higher ceiling amount ($10K) did not make the cut on the final omnibus ruling this past week.

in theory, this does not remove the requirement to report any earned income. I suggest you discuss this with whomever you use for tax filing assistance.
 
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#17
My trio is routinely paid by check from the various venues we play. Last year, most (if not all, I just don’t remember) sent a 1099 and it was reported. In my case, I’m a life-long full time musician so I’ve always reported income, paid SSI, etc … I’m pretty sure if you receive a 1099 it’ll need to be reported. Check with your tax assistance people.
 
#18
from ed goode: "Officially, the $600 figure has not changed, although there is a push for a higher ceiling. The higher ceiling amount ($10K) did not make the cut on the final omnibus ruling this past week."

raising the ceiling makes a lot of sense to me. stick with the professional resellers and let the casual amateurs off the hook.
 
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