|
||
|
|
||
|
|||||||
| Mustangs Parts For Sale/Wanted Looking for a Mustang or Part or have one for sale? Post it here! |
 |
|
|
Thread Tools | Display Modes |
04-01-2011, 08:27 PM
|
#1 |
|
Valve bender backer
 
Join Date: Mar 2011
Location: Orlando
Posts: 380
|
IRS enacts new tax law for 2011 that could affect many of us.
IRS enacts new tax law for 2011 that could affect many of us.
http://www.irs.gov/irb/2009-10_IRB/ar09.html Since most of us use Paypal for forum transactions: QUOTE: Starting in 2011, all U.S. payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. We want to help you understand these changes. * Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments * Applies only for sales on or after January 1, 2011 Personal payments that are not payments for the sale of goods or services will not be counted in the total to be reported. However, all payments received for the sale of goods and services will be used to calculate the gross payment volume to be reported. END QUOTE Everyone needs to be aware of this change if they move this kind of money though Paypal (I do more than this every month so my accountant is already getting ready for the mess should my 1099 from Paypal not match what I report) If you part out a couple cars a year it could be really easy to get caught up in this. This should be a sticky and also posted everywhere that people are selling. I just had to convert my personal Paypal account to a business account for this along with giving them my EIN number for reporting purposes. After dealing with prior 1099, when you don't have all your expenses lined up properly you could OWE money to the IRS come tax time if you sell a bunch of stuff on the forums/Ebay. Enjoy! |
|
|
|
04-01-2011, 09:52 PM
|
#2 |
|
Mach Underhood
 Join Date: Jan 2007
Location: FL
Posts: 1,677
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Not sure about personal accounts, but I have been getting 1099 from PayPal since 2004-2005 for "cashback" when using my PayPal card to purchase items.
Gotta be careful, I used to think the $500 - $1000 they gave me didnt mean anything....was I ever wrong. lol These days, I print the statements....and give them to my accountant.
__________________
Stock 4.6 4V, Cobra Cammed: 11.63@117.84 - N/A T45 / 4.56 / Drag Radials - N/A 4V Video |
|
|
|
|
04-02-2011, 07:47 AM
|
#3 |
|
Registered User
 
Join Date: Sep 2009
Location: BUFFALO GROVE,ILL
Posts: 97
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
ASH WIPES, HOW DEEPER INTO OUR POCKETS WILL THEY DIG.
    
|
|
|
|
|
04-02-2011, 09:28 AM
|
#4 | |
|
Valve bender backer
Join Date: Mar 2011
Location: Orlando
Posts: 380
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Quote:
You hit the 20000/200 limit inside a year and your personal account now gets reported basically as a business venture. What bugs me is I used to use Paypal for both personal and business, can't do that anymore. Everytime you "trade" parts on a forum the sale is recorded regardless whether you lost on the trade. Hit that 20000/200 deal and its gonna be fun showing Uncle Sam that you actually don't make 20K extra if you are not incorporated. |
|
|
|
|
|
04-02-2011, 09:47 AM
|
#5 |
|
finally paid for
 
Join Date: Nov 2004
Location: Ypsilanti Twp, Mi
Posts: 4,077
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
^^ can you ask it be listed as gift? to get around the issue. sure it will make the buyer pay more money but it wont be registered as a good or service
__________________
2004 mach 1-turbo build in progress.. Fast xfi 2.0 OLD combo- 826rwhp/720 trq -100 shot NX 9.13@154 on 100 shot NEW- in progress... 
|
|
|
|
|
04-02-2011, 10:03 AM
|
#6 |
|
Torque wins!
Join Date: Dec 2004
Location: Florida
Posts: 13,167
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Gotta love postal money orders.
Thanks odumbo. 2012 cannot come soon enough.
__________________
The ORIGINAL Project R build thread is back ! 5.4 32V NA Streetable 404/387 26.56 MPG "I don't like repeat offenders, I like DEAD offenders" Ted Nugent "A big engine hardly working is more efficient than a little engine screaming its head off" Jay Leno |
|
|
|
|
04-02-2011, 02:09 PM
|
#7 | |
|
Valve bender backer
Join Date: Mar 2011
Location: Orlando
Posts: 380
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Quote:
From my understanding all gifts or basically all money transfers that Paypal does not collect fees on are not reported. I am still learning more about it to be honest. Looking at my "sales reports" it only seems to track the money received that Paypal took fees on. |
|
|
|
|
|
04-02-2011, 02:18 PM
|
#8 | |
|
Valve bender backer
Join Date: Mar 2011
Location: Orlando
Posts: 380
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Quote:
This appears to predate the current administration since it was enacted by the IRS in early 2009. Takes more than a couple months to get something like this designed and pushed through the system. BTW - I have learned Paypal is probably the best credit card processor available now especially with the recent proliferation of "Rewards" cards. For those that don't know the vendor you are buying from is paying for your "Rewards" I had a ~2% rate for regular debit/credit, but the Rewards rates came in at 3-4%. The trend I have seen over the last 2+ years is more and more sales were done with Rewards cards, and nobody I asked would give me an account that blocked the extra Rewards fees. Paypal is one of the few that you get the same rate regardless of what card they use. |
|
|
|
|
|
04-02-2011, 04:45 PM
|
#9 | |
|
"Stream-line Butterfly"
 
Join Date: Jun 2005
Location: Where its summer 3 months out of the year, PA
Posts: 690
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Quote:
__________________
03 TR Cobra |
|
|
|
|
|
04-11-2011, 07:43 PM
|
#10 |
|
Guest
Join Date: Apr 2011
Location: FL
Posts: 18
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Wow I had no idea about this, Guess I have to watch out what I sell for friends now
|
|
|
|
|
04-11-2011, 08:48 PM
|
#11 |
|
Registered User
Join Date: Apr 2010
Location: Detroit
Posts: 195
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
This will drive up money orders, which unfortunately puts both the buyer and seller at greater risk. How many PP accounts can you have. Can you spread it across 10 accounts or would they all link back to your SS number.
__________________
04 Azure Blue - 5 spd. 03-04 Cobra front bumper Complete UPR Front & Rear Suspension w/ K Member Caster Camber Plates Steeda Bump Steer 4.10 Gears Tri Ax Shifter Bassani Headers Custom Xpipe w/o cats Magnaflow Cat Back Exhaust Custom Tune - Alternative Performance Sequential Tail Lights 03 Chrome Cobra Rims 17x9 275 - 17x10.5 315 DR 313 RWHP Write up in Racepages Magazine - June 2010 http://nmradigital.com/rpmagazine/june10/index.htm |
|
|
|
|
04-11-2011, 08:50 PM
|
#12 |
|
Guest
Join Date: Apr 2011
Location: FL
Posts: 18
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
I dont think you have to use your social, just bank accounts I guess?
|
|
|
|
|
04-12-2011, 12:39 AM
|
#13 |
|
res. crazy hottie poster
Join Date: Dec 2005
Location: donelson,tn (nashville,tn)
Posts: 2,140
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Wow holy crap this is crazy !!
__________________
www.svtoanashville.com ACTIVITES DIRECTOR NOT JUST for svt products !!!! 03-black cobra R.I.P. 03-azure blue mach 1 born on 3-11-03 gone but not forgotten  black 03 cobra vert. SVT 10th anniv. ,95 DARK GREEN GT  if your worried about fuel economy,buy a honda. just think about whats more important to you. saving a few bucks at the pump, or driving around with a boner  |
|
|
|
|
04-12-2011, 01:51 PM
|
#14 |
|
Registered User
Join Date: Nov 2010
Location: Asheville,NC
Posts: 81
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
this is bull It doesn't affect me but it is still bull! If the market doesn't comeback soon taxes are going to go way up to pay off the deficit so get ready
 Could paypal be too big? maybe too good to be true? Is there another company that does that sort of thing?
__________________
03 Oxford White Mach 1 76mm turbo 18" Carroll Shelby Black Bullitts Magnaflow CB |
|
|
|
|
04-12-2011, 04:08 PM
|
#15 | |
|
Valve bender backer
Join Date: Mar 2011
Location: Orlando
Posts: 380
|
Re: IRS enacts new tax law for 2011 that could affect many of us.
Quote:
That is a really good question, I would think one business one personal is probably how they would look at it anyway but I don't know the true answer. BTW - Its not just Paypal, its any service that transfers money for you from my understanding (credit card processors, etc) I would imagine they will start looking at the banks next to see people with extra amounts of "deposits" that are not direct deposit paychecks (if they are not already) |
|
|
|
|
|
| Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
|
|
<
Linear Mode
