Paypal Year Divident Statements

[Archive]

Posted By: Mike

I'm doing my taxes today but haven't received anything from Paypal concerning dividends for 2008. Arn't they suppose to send out a statement ? Isn't that required ? Any tax experts etc out there ? Is there a location on there site to get this information ? Thanks Mike

[Archive]

Posted By: D. Bergin

Go to your Paypal account. Click on the "History" tab. Choose the date span you need and use the drop down box and click "Dividends".

It's pretty easy.

[Archive]

Posted By: Jim VB

What dividends did Paypal pay out to you? If you're talking about a Form 1099 showing payments made from Paypal to you, you're not going to get one. Starting in 2012 (for tax year 2011) they will be required to report info on their large sellers, but they don't send them now.

[Archive]

Posted By: leon

Sounds like Paypal is going to have a big drop off in business in the tax year of 2010.....

[Archive]

Posted By: D. Bergin

What dividends did Paypal pay out to you? If you're talking about a Form 1099 showing payments made from Paypal to you, you're not going to get one. Starting in 2011 (for tax year 2010) they will be required to report info on their large sellers, but they don't send them now.


Paypal pays out monthly Money Market dividends according to what's in your account. Right now it's barely negligible but at one time it hovered around 4-5%.

[Archive]

Posted By: Jim VB

Thanks Dave. I was unaware because there never seems to be anything in my Paypal account.

[Archive]

Posted By: Jim VB

Leon,

The new law won't impact most sellers. It will only effect those with over $20,000 in payments AND over 200 transactions.


And I was early by one year. It will be effective for receipts in 2011, reported in 2012.

[Archive]

Posted By: Jeff Lichtman

I know that most sellers of cards probably don't report capital gains on their tax returns...but this is insane (and more importantly illegal). And when the IRS auditor checks your bank account statements and asks what all of these deposits listed as "paypal" are -- you're screwed.

[Archive]

Posted By: Jim VB

Jeff,

I agree and I wasn't suggesting that anyone should not report income to avoid taxes. I was merely commenting on the upcoming change in reporting requirements.

Clearly the OP (Mike) was trying to do it the correct way and looking for the info.

[Archive]

Posted By: leon

When you are as well liked by an unsavory person as you and I are, you know we better keep our spreadsheets in the ready......All Mr.IRS has to do is ask and he shall receive, from me.....I have passed an IRS audit, with baseball cards before, so am fairly well up on what they want. I had forgotten about 1 stock I had sold (truthfully forgot) but the cards passed with flying colors. take care

[Archive]

Posted By: Eric B

I don't think anyone answered the OP, so I will.

The statements would have been mailed out by January 31st. But since you're asking, it must have been lost. But that's OK. You can get the information from your account and just use it w/o the 1099-Div form. You don't send it in anyway.

[Archive]

Posted By: Jeff Lichtman

But Leon, the unsavory person has to be a human in order for anyone to listen to him. And no one listens to him but defenseless poultry.

[Archive]

Posted By: Paul

If the dividends were less than 10 dollars, then you will not receive a 1099.

[Archive]

Posted By: Tim Sanders

Depending on the exact set up of paypals interest bearing account (I never have enough money in paypal to bother)you would get either a 1099INT (Bank sponsored) or a 1099Div (Most Money Markets)if you earned more than $10 in dividend or interest income. For the record the lack of a 1099 form does not remove the liability of paying tax on the income earned, it just means the payer (paypal in this case) is not responsible for reporting the payments to the IRS. Finally 12+ years in financial Services has a practical application (besides earning a paycheck!)

[Archive]

Posted By: Al

Is it my understanding that in the near future, paypal will provide the IRS with data pertaining to all funds one has received as a seller? And, if this is so, would the liability be only on the profit made from such sales or all sales in general? Isn't there a fine line here defined by "business v. hobby"...business being where one receives primary income from eBay sales v hobby where one merely dabbles on eBay and thus is exempt from this.

Clearly I'm a bit in the dark on this topic...however, it is my intent to liquidate my collection in the next 5-10 years and am pondering whether I should accelerate this time frame, or is all this moot? Any funds I receive currently from sales and paid via paypal are immediately moved to my checking account and not allowed to sit and grow any form of interest or dividend within the paypal structure.

I estimate my bb card collection net worth in the $60k range and am simply wondering if I have a potential IRS issue in the future.

Can anyone quote IRS regs pertinent to this or is this a non issue to me when I sell?

[Archive]

Posted By: Jim VB

Al,

Your tax liability is exactly the same, whether or not Paypal reports your disbursments to the IRS. You are liable for tax on any profit you have on any sale of this type. There is no change forecast for that. (OF course, the rate of that tax is always subject to change under Federal tax law.)

Even if Paypal doesn't report, the IRS can audit you and check records of what you've received. It's much smarter to keep good records, and report fully, any profit you make. A good auditor would be glad to ask what was the source of the deposits to your checking accounts.

As I said in an earlier post, Paypal has agreed to beging reporting to the IRS, in early 2012, the dollar amounts disbursed to anyone with over $20,000 AND over 200 transactions. So any sales made in 2011 will be reported, if you meet these standards.

BUT IT REALLY SHOULDN'T CHANGE ANYTHING!

[Archive]

Posted By: Joann

I'm pretty diligent about keeping records of sales and reporting any gains. Of the ~3 hours I spend each year doing my taxes, about half of that is getting all of the sale info from spreadsheets. But I can't imagine not keeping records and paying tax on it. Even though it is a laughably small amount of money involved, that's just asking for trouble.

If PayPal starts reporting all info though, it would be a real pain in the rear for me. My family and I use it for things like paying someone the money you owe for your share of mom and dad's anniversary present - things like that. It's much easier than trying to remember it the next time you see someone, which could be months later. Gah I hope I don't have to start tracking that crap b/c of PayPal

J

[Archive]

Posted By: Jeff Lichtman

Al, sales of cards are taxed as capital gains -- assuming there are gains. But imagine this scenario: a collector doesn't declare to the IRS his gains in 2007-2011, assuming he won't be caught. In 2012 paypal sales are forwarded to the IRS and the IRS audits the collector for 2011. During their audit they decide to go back a few years and look for other paypal transfers or other puzzling deposits into the collector's checking account. If the collector has large gains not reported for multiple years he better hope his name is Geithner, Daschle or Rangel because that collector otherwise is getting indicted.

[Archive]

Posted By: Al

Jeff...I may be wrong here, but, if memory serves, those who are found to have a tax liability are generally "caught" by the Underreporter Branch of the IRS Service Center wherein the taxpayer's return is filed. If an audit is ordered and in that process, it is discovered that capital gains were in fact owed, I think the appropiate tax and penalties would then become do. Generally, when 1099s are sent to the great IRS computer in Martinsburg, WV, and your SSN starts to make things go tilt, a notice is issued. These notices, if they go unresponded to, do in fact get progressively worse and could well lead to a full blown audit.


I think a formal indictment right at the starting gate is a bit heavy for this infraction, should there in fact be a violation. Please correct me if I'm wrong.

[Archive]

Posted By: Mike

My son has baseball cards and lego's etc that he has received over the years as birthday and Christmas gifts etc. Now he wants to sell all his collection of goods and start a card/lego etc business with this gift inventory. He didn't spend any money on the items . How do taxes pertain in this case ? Any help is appreciated. What is the cost of goods sold ? Any help in how to inventory the legos ( which will be sold as individual pieces) By weight ? ect. Thanks Mike