jonathan1138
Active member
Ok, know its been posted here before - but could use quick "advice" please.
First off, this is a hobby, i lose money at it. Dont want to lose more to the accountants / IRS / etc.
Closed a transaction today, got an email from Paypal for my SS #:
We'll use your tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive exceed both of these milestones in a calendar
year:
- $20,000 in gross payment volume for goods or services
- 200 payments for goods or services
I did an audit of where i am for the year with PP - 90 PAYMENTS received, amount received less than 20k (but nearing 20k).
So - questions
--- if i STOP using PP through the end of the year (to receive payments) - am i safe / exempt from the 1099-k rule? Good to know because i was thinking of selling another big ticket item (unrelated to this hobby).
-- Payments sent dont have any impact right (like an offset impact - i paid 20k, received 20k, so its a wash?).
-- Does the 20k come from amount received or NET received after PP fees?
Hoping i dont have to file a 1099-k. If i do, i need to itemize my "restores" and show that i break even on most of them (and even take a loss on most). That is a horrible thought, the time that would take would be terrible.
Thanks.
First off, this is a hobby, i lose money at it. Dont want to lose more to the accountants / IRS / etc.
Closed a transaction today, got an email from Paypal for my SS #:
We'll use your tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive exceed both of these milestones in a calendar
year:
- $20,000 in gross payment volume for goods or services
- 200 payments for goods or services
I did an audit of where i am for the year with PP - 90 PAYMENTS received, amount received less than 20k (but nearing 20k).
So - questions
--- if i STOP using PP through the end of the year (to receive payments) - am i safe / exempt from the 1099-k rule? Good to know because i was thinking of selling another big ticket item (unrelated to this hobby).
-- Payments sent dont have any impact right (like an offset impact - i paid 20k, received 20k, so its a wash?).
-- Does the 20k come from amount received or NET received after PP fees?
Hoping i dont have to file a 1099-k. If i do, i need to itemize my "restores" and show that i break even on most of them (and even take a loss on most). That is a horrible thought, the time that would take would be terrible.
Thanks.