Quote:
Originally Posted by CTDean
Bob,
The paypal 1099K includes all money coming into your account for sales. You can buy with your funds, let it set, or transfer to your bank if you want. Your 1099K will include every dollar coming into your account no matter how it goes out.
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Yes I know and understand that, and never said 100% of a person's sales through Paypal (unless they are F&F transfers which aren't considered as sales) don't count towards their 1099-K reporting. I was merely trying to point out to people that if someone never transferred sales money they got through Paypal back into their bank account, that sales money never shows up on their bank account statement or in their personal bank records, where the IRS can easily go and find it. And that was a main reason why they imposed the lower reporting threshold on Paypal and other third-party payment venues. If you go back and carefully re-read what I wrote, you should be able to get my point.
These are very complicated tax laws and reporting requirements, and despite my often writing novel length posts to try and explain them, I still can't begin to cover all the nuances and exceptions. Just trying to be helpful and give members some advice when it comes to our hobby and taxes. And that's why I most often end such posts suggesting people get in touch with a qualified tax professional for more specific help and guidance, especially one knowledgeable about the state they're in.