[Elecraft] PayPal holding payment

[Jon Poland]

I'd like to offer the "correct" info about tax reporting.  I am a
professional tax preparer and make my living understanding the correct
nuances of the US tax code.  I also have an eBay store, so I have used
PayPal for many years.  I prefer it for my own purchases and for those who
buy my product. (There is a shameless plug below.)

1.  As long as you mark the transaction as "friends and family" or
whatever: PayPal, Venmo, or whomever will NOT report the money to the IRS.
2.  As a buyer, PayPal, Venmo, or whomever, offer you protections when you
mark a transaction as business, so if you are wary of a seller's honesty by
all means mark the payment as business.  Even though it might mean that the
seller will be forced to do what the law says he must anyhow.  And even
though the seller might be forced to pay a transaction fee.
3.  If you sell on eBay or another auction site, it will be reported to the
IRS if your annual total is greater than or equal to $600 regardless how
you pay.
4.  It is NOT, I repeat NOT, a big deal to get a 1099-K.  You will have to
file a Schedule C where you report the 1099-K income, plus expenses.  As
long as your expenses exceed your income, you don't pay any tax (you might
even show a loss).  The IRS cannot establish the market value of the
product you sell; you get to.  And I'm sure you are selling that old piece
of junk (er precious treasure) below market value.  And of course PayPal,
Venmo, or whoever's transaction fees are expenses you can claim too.
5.  There are other benefits including that your professional tax
preparation or tax software is now a deductible expense.  So you can
actually save money in the process!

For those of you outside the United States, I'm sorry you have to read this
stuff.

Now for the shameless plug:  I make and sell 3D printed PowerPole adapters
for the KX3, KX2, and FT-81x line of radios.  These adapters screw onto the
rig and let you work only with PowerPole connectors.  This is essential for
the FT-81x.  But it is a great convenience for the KX's especially when
using Bioenno or other external batteries that have premade PowerPole
connectors.  You can find my product on eBay at:
https://www.ebay.com/str/n0wlradio
or pay me directly via PayPal at jonpoland at gmail.com

Jon N0WL

On Thu, May 12, 2022 at 11:11 AM Thomas Valenti <tomk3aj at gmail.com> wrote:

> There is another, very important reason NOT to accept payments via PayPal
> for casual, hobby related transactions.
>
> Effective this year, PayPal (and Venmo) now issues an IRS form 1099-K to
> anyone receiving more than $600 in a calendar year. Therefore, you have to
> report your proceeds as income, unless you can provide documentation that
> you sold the item for less than you paid for it. A hassle just not to be
> invited. The last thing you need is a reason for the IRS to scrutinize your
> tax return.
>
> Ask me how I know. Last year, I sold a bunch of ham radio equipment and
> took payment by PayPal. When the 1099-K arrived, my CPA (who happens to be
> my XYL) went crazy. Naturally, I did not have documentation about exactly
> when and for how much I had acquired some of this gear.
>
> KISS - take payment the old fashioned way - via check sent through snail
> mail.
>
> Tom K3AJ
> ______________________________________________________________
> Elecraft mailing list
> Home: http://mailman.qth.net/mailman/listinfo/elecraft
> Help: http://mailman.qth.net/mmfaq.htm
> Post: mailto:Elecraft at mailman.qth.net
>
> This list hosted by: http://www.qsl.net
> Please help support this email list: http://www.qsl.net/donate.html
> Message delivered to jonpoland at gmail.com
>