gunbroker and 1099
Anyone know how gunbroker is handling sales? Are they going to do a 1099 for selling on GB? Or will if be like ebay and you have to have a certain number of sales and dollar amount before you get a 1099? I cannot get a reply back from Gunbroker on this.
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I was wondering the same thing, looking forward to see some answers.
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Depends on your state. Ebay 1099's come in Illinois with THREE transactions or 1k in sales. Law passed in the middle of the night and I got mine as did many others in the state to a great big surprise. Ebay wasn't taking calls for two weeks over the outrage.
GB transactions that I took Paypal showed up also so trying to avoid that but still have received some payments other than "friends" so they also will be on a 1099 through subjected from Paypal. It's going to be a goat roping I am sure the end of this year.
Big brother has taken over with not a shot fired and we will pay the price.
And please don't lecture me on Paypal is anti-gun, just about every store you get your groceries, gas stations, ect. so you are supporting anti-gun companies as all people do.
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Well, since EVERYONE is doing it...........NOPE I will still pass. 😁
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Grasshopper is correct. Just like GB is considered a "facilitator" for sales tax collections/remittance, they may also be considered a "facilitator" for payment processing. Not being a seller on GB, I do not know the exact details of their Gunbroker Checkout process, but if they are processing the payments, then those payments would be reportable transactions. If someone sold something but did not go through the Gunbroker Checkout process and either took a check or money order or outside credit card processing, then I don't see how it would be a reportable transaction by GB.
Federal 1099K requirements for credit card companies/payment facilitators' reporting are 200 or more sales or $20,000 of sales in that calendar year.
However, some states have more stringent requirements for the credit card companies/payment facilitators who process for sellers who live in their state.
Don't blame GB. If they are required to and do not, then they can get hit with big penalties.
This is just my opinion as I again say that I do not know the exact details of the Gunbroker Checkout process. As someone puts on here after their opinion, "your mileage may vary".
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state is indiana
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The $20,000 or 200 transaction requirement is only good for this year. Be aware that stashed in the COVID/stimulus relief package in March, the reporting threshold for 1099K (payment processing) is going down to the typical 1099 reporting requirement of $600 per year with no minumum number of transaction requirement. This is to begin in Year 2022. Huge difference from the $20k or 200 transaction requirement. It will catch a bunch of small sellers if they try to sell themselves instead of using an established online seller like Kasey or Ricci.
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neacpa: 31153157157787/comments/31153157748635
Grasshopper is correct. Just like GB is considered a "facilitator" for sales tax collections/remittance, they may also be considered a "facilitator" for payment processing. Not being a seller on GB, I do not know the exact details of their Gunbroker Checkout process, but if they are processing the payments, then those payments would be reportable transactions. If someone sold something but did not go through the Gunbroker Checkout process and either took a check or money order or outside credit card processing, then I don't see how it would be a reportable transaction by GB.
Federal 1099K requirements for credit card companies/payment facilitators' reporting are 200 or more sales or $20,000 of sales in that calendar year.
However, some states have more stringent requirements for the credit card companies/payment facilitators who process for sellers who live in their state.
Don't blame GB. If they are required to and do not, then they can get hit with big penalties.
This is just my opinion as I again say that I do not know the exact details of the Gunbroker Checkout process. As someone puts on here after their opinion, "your mileage may vary".
Method of payment has no bearing on it. Whatever the item sells for the tax is calculated for the buyers zip code and charged to the credit card the seller has on file. Exactly the same as way the seller's fees are collected. There is no avoiding it unless you sell your item outside GunBroker which would be a quick way to get booted off the site.
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shootuadeal: 31153157157787/comments/31153185516059
https://forums.gunbroker.com/discussion/comment/11284972#Comment_11284972
Method of payment has no bearing on it. Whatever the item sells for the tax is calculated for the buyers zip code and charged to the credit card the seller has on file. Exactly the same as way the seller's fees are collected. There is no avoiding it unless you sell your item outside GunBroker which would be a quick way to get booted off the site.
Shootuadeal, with all due respect knowing you are a seller on GB and I am not, but I will still digress. 1099K's are for companies who are processing payments. If an item sells and the buyer contacts the seller and says "Hey, here is my credit card number" or "I am going to mail you the check/money order", then GB is not processing the payment and there should not be a 1099K on the transaction. GB is always facilitating the sale (hence the sales tax requirement), but not always facilitating the payment.
If it was simply based on someone selling at their location or internet site and not payment processing, then that means every seller on CL or FB Mp would have to register with that site's administration and provide their address and SS# or EIN. Every vendor at a flea market or gun show would have to do the same thing with the operator of such.
Arkansas currently has a "special events" rule that any operator who is organizing a "special event" where vendors set up and sell have to have each vendor fill out a report of how much they sold at the event, collect the sales tax from that vendor and remit to the State of Arkansas. They are also supposed to report to the State the name of each vendor who rented a booth/table whether there was any sales reported by that vendor or not.
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