Quote:
Originally Posted by bnorth
I have been collecting for easily 35 years so old stuff to sell I am no longer interested in isn't a problem. The new $600 limit on getting a 1099 is what will stop most from doing it. Since many eBay sellers are normal collectors selling something to buy something else or straight up unlicensed non tax paying dealers. I see eBay listings drying up real quick.
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Remember, the reporting is only for commercial sales activity, so Paypal Friends & Family payments are NOT included in what will be reported. Not sure if any of the other payment platforms have a similar type of personal payment option, but if it seems maybe so, you can contact them and ask if such payments are included in this new 1099-K threshold reporting mandate or not.
However, be advised these payment platforms are not stupid, and monitor and keep record of all payments through them, including friends and family ones. So don't be surprised if they suddenly see someone incurring ongoing transactions and activity for thousands or tens of thousands of dollars using their friends and family option, especially when there was no such previous F&F activity or history before, and investigating it themselves, or reporting it to the pertinent authorities (like the IRS). They certainly aren't going to take a hit for someone using their payment platform and trying to get around the tax laws. Remember the old saying, pigs go to market, but hogs get slaughtered.