Quote:
Originally Posted by 911 tweaks
I’m surprised no one has said this… The biggest reason people want F&F is if the seller receive payment as goods and services, seller will get a W9 from PayPal at the end of the year and you have to claim that as income and pay income tax on it… To me that’s the big negative of accepting PayPal NOT as friends and family… Do your due diligence, talk to the person get warm and fuzzies is what I do…
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Technically you only have to pay tax if you made a profit on the sale. It's a pain, but I expect one would have to keep records to show what the part cost new vs what it sold for. Most things would depreciate so you wouldn't owe tax.
I have to deal with a 1099 from Ticketmaster when I sell my Celtics tickets to games I can't attend. I have a spreadsheet that I use to track ticket face value vs what I actually made on the sale (sale price minus Ticketmaster fees). I might get a 1099 for $1500, but I often don't show any profit from the sales so no taxes.
Mark