Ethical question / Paypal

[Exhibitman]

Originally Posted by SMPEP

My biggest issue with the non-gift option on Paypal is that they now report to the IRS. I very rarely sell anything at a profit, and frequently sell at a slight loss. I am a collector, not dealer. Yet the full amount of the sale shows up as taxable "income"? If this were buying and selling stocks you adjust these figures for your cost basis. But for baseball cards you're expected to pay full tax, even when selling at a loss?

Said differently, if I simply traded the cards I had for the ones I want, there is no tax. But if I trade the ones I have for cash, to buy the ones I want (because I can't arrange a direct trade of 1973 Topps cards for a T206), then I owe taxes on it?

The threshold for a 1099 from Paypal is relatively high--over $20,000 in gross payment volume AND over 200 separate payments in a calendar year-- and if you are doing sales in excess of that threshold you need to speak to a competent accountant about getting everything squared away as a business.

[Leon]

Paypal gift is a different, less secure product than the regular paypal payments. I have no issue using it. If anyone thinks they are doing something wrong by using it then they shouldn't use it. Pretty easy decision.

[alanu]

I don't like the paypal fees, but I love the service anyway for the convenience.

[freakhappy]

I can see most everyone's points here, but I like using it and will continue using it on Net54 because I feel comfortable with it. If Paypal tells me to stop using it, I will but until then no issues here.

If you believe that there are ethical issues with using it, don't use it. There are clear cut ethical dilemmas and there are situations that people "believe" are ethical dilemmas...