dirtsifter
Cave Dweller 
Co to za kamyczek?
Member since September 2022
Posts: 402 
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Post by dirtsifter on Apr 24, 2023 16:38:07 GMT -5
I have paid with PayPal and by old fashioned check if they will accept it. I just tell the seller to ship after the check clears. I have not sold anything pertaining to lapidary.
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dillonf
fully equipped rock polisher
Hounding and tumbling
Member since February 2022
Posts: 1,622
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Post by dillonf on May 1, 2023 19:44:28 GMT -5
Ok, good to know. I'm finally getting to a point where I think I can cope with letting some of my material go (sentimental reasons). So I just wanted to see what the preferred choice is when the time comes. For example, here is some of my stock of Ochoco dendritic/Ochoco sunset agate. I'll never go through this in a lifetime and need to start making some decisions on how to best part with some of it once I determine fair prices on it.  That's some nice stuff. I am really interested in buying stuff from folks on the site. It is nice to get stuff from folks that embrace the lifestyle! I'll be looking out for your sale!! |
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NRG
fully equipped rock polisher
Member since February 2018
Posts: 1,688
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Post by NRG on May 2, 2023 19:50:33 GMT -5
I have moved on from paypal to zelle. No fees on either side. No credit cards tho
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Post by Rockoonz on May 4, 2023 16:03:06 GMT -5
I have moved on from paypal to zelle. No fees on either side. No credit cards tho As long as you are doing business with someone you trust. as there are no protections for buyer or seller. |
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vance71975
freely admits to licking rocks
Member since September 2022
Posts: 760
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Post by vance71975 on May 8, 2023 22:34:01 GMT -5
gunsil The $600 is also the total amount of the transaction, the money that moved, so platform fees, shipping, maybe even tax paid by the buyer (not sure if they are subtracting that back out or not) but because of that the 600 is considerably more than your actual earnings. So you are reported to the IRS as having earned 600 but really may have only pocketed 300. It’s not only egregious in that it’s such a low threshold for everyone to have to hassle over, but it will force non-businesses to need to behave and record keep as though they are businesses, so it creates an additional burden by taxing people out of their time as well. You’ll need documentation for what your earnings really are, because the platforms are reporting the total amount moved, not your earnings. Does it depend on how the money is sent? IE if you send it Family and Friends instead of a payment does it still produce a 1099? What about money from Refund Apps like Ibotta, which gives you cash back on Items you buy, so its not "income or profit" its refunds? |
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vance71975
freely admits to licking rocks
Member since September 2022
Posts: 760
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Post by vance71975 on May 8, 2023 22:35:53 GMT -5
Everybody who uses electronic payments needs to write their senators and congressmen! Until last year the limit for getting a 1099 for sales was $20,000 or 200 items sold. Now it is $600 and can be for even one sale. This is patently unfair for those hobbyists who sell part time mostly to support their hobby. Ebay has even sent out forms to fill out that they forward to your lawmakers after you fill out the form. This governmental greed can be stopped if enough folks complain. Does this apply if you use Friends and Family to send/recieve money? Do you know if they are going to apply this to Apps on your phone Like Ibotta that gives you refunds on products you buy? |
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vance71975
freely admits to licking rocks
Member since September 2022
Posts: 760
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Post by vance71975 on May 9, 2023 5:15:36 GMT -5
Does everyone receive Form 1099-K? If you're wondering does PayPal send 1099-K for Friends and Family transactions, the answer is no. The IRS and PayPal have specific guidelines for when this tax form is issued, and it only applies to sales of goods or services, not personal payments. To receive a Form 1099-K, you must exceed $20,000 in gross payment volume and have over 200 separate payments for goods or services in the same calendar year. However, the threshold for these requirements is lower in Vermont and Massachusetts, regardless of the number of transactions. For example, let's say you received $30,000 in personal payments from friends and family in a year. Since these transactions are not subject to reporting requirements, you wouldn't receive a Form 1099-K from PayPal, regardless of the number of transactions processed. That said, you're still responsible for reporting any taxable income you earn through these transactions on your income tax return. So if you're concerned about does PayPal sends a 1099K for friends and family, rest assured that this isn't the case. www.zenledger.io/blog/does-paypal-report-to-irs-on-friends-and-family1099-K Threshold Change: This new Threshold Change is only for payments received for goods and services transactions, so this doesn’t include things like paying your family or friends back using PayPal for dinner, gifts, shared trips, etc. www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543 |
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Post by Rockoonz on May 9, 2023 10:42:42 GMT -5
Of course, friends and family transactions do not have the buyer protections that a merchant transaction would, so as a buyer I would only consider paying that way to a trusted seller.
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vance71975
freely admits to licking rocks
Member since September 2022
Posts: 760
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Post by vance71975 on May 9, 2023 20:40:43 GMT -5
Of course, friends and family transactions do not have the buyer protections that a merchant transaction would, so as a buyer I would only consider paying that way to a trusted seller. I was just saying as a way to avoid the 1099 form when you are not selling much it would make sense to take payments via friends and family. |
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Post by Rockoonz on May 9, 2023 21:12:14 GMT -5
vance71975 I understand, but you can sell a lot as a hobby and just write it all off as costs, especially if you're like me and will be travelling about 4000 miles for shows and various activities, along with show fees and lodging/food expenses, not to mention what I buy in rocks, equipment and maintennance. If it is not a business the 1099 is a document you can ignore except to file it with all your records and a reference to use when computing your profit and loss. It is not income, it is sales, and as long as you are NOT trying to write off your costs from your non hobby income and NOT registered with the IRS as a business, if your "costs" exceed your sales there is nothing to report or pay taxes on. A tax ID with your state to collect sales tax at shows does not make you a business either. As a hobby you can write off, carry over amortise and all the rest just like a business, but you can't write off your losses against the rest of your household income like a business does. If you use friends and family for obvious sales, not only do you lose shipping discounts and buyer/seller protection, if they really wanted to they could consider the transaction fraud and tax evasion on the sellers, and possibly the buyers part, even if there were going to be no taxes due anyway. It's really not worth it, a lot easier to just save receipts and keep track of mileage.
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Post by HankRocks on May 10, 2023 8:38:11 GMT -5
It's my opinion that biggest percentage of folks out here would have a very difficult time proving that their lapidary activities were a for profit business. It's really just a hobby that we enjoy and that any money generated by sales is just recovering some of the expenses involved in that hobby. If someone came up to you and said, I going to start a lapidary business to be my sole source of income, you would do your best to talk them out of it.
Once you start adding up all your expenses; cost of material - rough or slabs, cost of equipment, cost of maintaining equipment, cost of selling. That's not even considering any travel expenses. Even if someone were to give you material at no cost, it would be difficult to make a decent living selling finished product. Obviously there are a few high end situations where a select pendant could be sold for a higher price, or a particular Quartz crystal brings in a chunk of change, those are not the rule.
I have saved all of my equipment and supplies purchases the last 7 years and it's quite a stack. I am afraid to actually total them up as it might be a bit depressing. Of course for me, it's a hobby that I enjoy so why would I want to worry about cost. As long as I am reasonable with my spending and do not put my financial security at risk then there is no issue for me.
I have a Tax ID and I am happy to pay the required sales tax. If worse comes to worse and some gung-ho IRS auditor goes on a campaign to recover the few dollars that he thinks I owe, I may just pay it, or if they caught me on a bad day and may decide to make his life miserable and pull out all of those purchases. I suspect that even the IRS would decide after a few of those type audits, "why are we barking up this tree".
Just my two cents(I wonder if that's taxable!!)
Henry
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Post by amygdule on May 10, 2023 13:30:39 GMT -5
Through my life
Travelling
Collecting Rocks
Making Jewelry
Surviving
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Post by Rockoonz on May 10, 2023 20:49:35 GMT -5
HankRocks you are spot on. Any IRS auditor, if you are ever audited, expects to see a profit/loss spreadsheet and if you can articulate what your costs are they aren't even going to worry about receipts too much.
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