Re: Confused? $20k or 200 items sold. Quote:
Originally Posted by slokor I dont believe this is entirely accurate.
If you only pass the $20k mark youll still get hit by the request since its the IRS threshold for reporting income. If Im not mistaken the 200 item is the less important one and if you pass that one along you wont be hit by the request for an EIN.
If I am mistaken I would appreciate someone more knowledgeable correcting me. | To add to what other people have mentioned, think of it this way. If you sold your car for $20k, ONE time, do you think paypal would report you for something like that? That's the key tho. Why it's $20k AND 200. Because you can sell just a couple of your own personal possessions and get above $20k, but that doesn't make you a seller. So having $20k, and many sales, means you're a seller, so you get reported. Both factors are equally important. They play off one another. Selling 200 pennies for $1 each probably doesn't get pinged by the IRS either.
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