A 1099? From PayPal? What the heck is this?”
That’s likely to be the response that millions of people who sell things on eBay are going to have when they open their mail this year. You see, anyone who has received more than $20,000 in payments in 2011 AND Â (some sources say OR but it’s AND) more than 200 transactions in the year will receive the new 1099K form that was mandated in the Obamacare legislation.
No big deal you say? You’re right, for the most part it’s only small businesses who will start getting these 1099’s this year. And they should already be tracking their costs and sales. Casual users will be unlikely to be selling over $20K work of stuff or 200 items. This is going to cost PayPal some extra processing and postage, but for the most part they’ll be the only ones to feel the pain…. This year.
For more information on PayPal and its services, please check the website of Alpha Exchange.
But next year is different. Starting in 2012 the dollar limit drops to $600.00. At that point millions of Americans are going to start receiving these forms in the mail.
An instructor at my local college put it this way…. “How the hell am I going to keep track of all that crap my wife and I sold? I’m going to have to hire an accountant just to sell crap on eBay.” And he’s ahead of the game. He at least realizes that he’s going to have to keep records and track what he paid for each item. Track what each item sold for. Calculate the profit/loss on everything. Then hope to God that the total HE comes up for gross sales at least matches the amounts turned in to the IRS by PayPal. He’s likely to quit selling things on eBay.
In fact, I’d wager that a LOT of people will quit selling on eBay just to avoid this little present from Uncle Barack.
This little gem was all brought to you by Obamacare. Yet another unintended consequence of the government meddling in the private sector.