- Joined
- Dec 28, 2016
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What people don't seem to understand - is that though it seems easy to just collect cash, etc. the new rules with PayPal and Venmo - as well as the proposed legislation that allows any transaction over $600 to be questioned after the IRS looks at your bank statement. We had a litter of puppies a couple years ago - quite expensive show-quality puppies - I called the state and asked - because it was thousands of dollars - she said - you're required to ask for sales tax for 'in-state' residents. Out of state residents are required to report the purchase and pay use tax. Now - If it's a 30$ item all good - but with some of these corals going for $$$$$$ - if I was selling them - I would certainly be keeping records. And again - this goes for trading as well. You have to report the income you received from the barter - then you can subtract out your expenses. Example. I have a 1000 Walt Disney Coral - I agree to trade for a 1000 xxx coral. You have to report the 1000$ as barter income. There are expenses you can subtract - but - they (the govt wants their cut as well). If you do this once every 6 months - well - still should be reported - but no one will know - if you're doing multiple PayPal transactions/month - its likely to be an issue (NOTE - non-accountant opinion)It amazes me how many "businesses" out there post they are starting a business, get a facebook business page, put up a website to sell with no tax EIN number, no state license, no tax collection license, NOTHING.