New PayPal BS?

[ChrisAU]

Sold a Kuiu hoody here this morning, buyer paid G&S which is fine, I printed the label a few minutes ago and went to withdraw funds and it shows on hold. WTF? Logged into my account online and found this:

Why your funds are on hold
All the funds from your monthly sales above $2,200.00 USD will be held for up to 21 days because:

• We need to learn more about you and your business, such as sales details and consumer service history.

_______________________________

Anyone else seen anything like this? I passed $2,200 on March 5th in G&S sales (USED gear, a thermal and Leica scope added up quick) and have since had a few more G&S transactions that were normal.

 

[HighUintas]

I think it's part of requiring sales tax on those transactions when it goes over a certain amount. There's another thread on this somewhere.

They'll hold your money until you fill out a tax form, or something like that.

It's BS, but law that sales tax is paid on this stuff when over a limit. I think Venmo does it too but havent seen reports of it yet. Only ebay

 

[Shortschaf]

Worse, it's Income tax related I think.

Paypal and venmo (and even Ebay) have changed their policy as of this year. It is in response to small businesses getting payment via these apps and not claiming as income.

These apps are now required to track things over xxx$ for tax purposes. To make sure uncle sam gets his cut. I have no clue how its all going to actually be handled for next year's taxes

 

[ChrisAU]

Oddly it released the funds right after I posted this. I have been keeping a log book for when people buy stuff from me and use G&S since 2022 because of the 1099 part, but surely they aren't trying to recoup sales tax from private transactions for used items? I guess they make eBay do it...ugh.

 

[dtrkyman]

The days of selling your old stuff online are coming to an end, PayPal can pound sand. I have not used them in a while.

 

[Pickettpuncher]

Anything over $600 is to be reported. But if took a loss, like selling used, you won’t have to pay taxes on it. A lot of small businesses would use PayPal to skip out on taxes.

 

[ScreamingPotato]

Oddly it released the funds right after I posted this. I have been keeping a log book for when people buy stuff from me and use G&S since 2022 because of the 1099 part, but surely they aren't trying to recoup sales tax from private transactions for used items? I guess they make eBay do it...ugh.

Unless you can prove you took a loss (keep receipts for when you bought new) it seems you *might* be on the hook for taxes. I killed my PayPal account a while back, don't need them meddling in my non-business transactions.

 

[ChrisAU]

Unless you can prove you took a loss (keep receipts for when you bought new) it seems you *might* be on the hook for taxes. I killed my PayPal account a while back, don't need them meddling in my non-business transactions.

Generally I buy pretty much everything online because I'm a cheapskate. So I have all the order info available to me. My spreadsheet has info on when/where I bought it and for how much. I've lost $3,656 since I started keeping track of it on Jan 1 2022.

 

[Tjdeerslayer37]

fair warning to everyone, they can and will seize your funds if they ever determine your item go against their user policies. bunch of guys on some knife forums lost their whole accounts $$$$ with no recourse. either withdraw the funds immediately or be very careful about the items that are sold being traceable

 

[*zap*]

I would request F&F payment. With over 100 + feedback it should not be a problem.

 

[ResearchinStuff]

G&S is a real problem as a seller, between the likelihood that the IRS is going to hunt you down, and the ease with which the buyer can recoup their $ after you ship the product.

 

[Luked]

Last time I had a hold all I had to do was show proof of shipment. Fill out the tracking part on Pay Pal after you ship it and the hold will get released.
Had it happen a few times but has been a while.

 

[TN2shot07]

So after all this awesome technology are we really going to have to resort back to checks and money orders?

 

[*zap*]

silver & gold

 

[ScreamingPotato]

Crypto!

 

[mtwarden]

I’ve been requiring F&F (or sending me a money order) since that $600 deal came up a year or two ago.

I’ve got years of feedback on a couple of different forums; if folks don’t want to use F&F (or a money order) that’s fine, have not had any difficulty selling stuff.

 

[5MilesBack]

• We need to learn more about you and your business, such as sales details and consumer service history.

That right there goes beyond my acceptance level.

 

[HighUintas]

I’ve been requiring F&F (or sending me a money order) since that $600 deal came up a year or two ago.

I’ve got years of feedback on a couple of different forums; if folks don’t want to use F&F (or a money order) that’s fine, have not had any difficulty selling stuff.

I was under the impression that the tax also applies to the FF method of payment. Is that not correct?

 

[WCB]

So after all this awesome technology are we really going to have to resort back to checks and money orders?

I don't do enough buying and selling online on used things like this to worry about it really...but when I do it is deliver face to face cash only. I have sold a couple red dot sights and random small things that were under $100 that I shipped but other than that. Its cash or nothing.

 

[mtwarden]

I was under the impression that the tax also applies to the FF method of payment. Is that not correct?

Not correct. FF exempt from reporting