Tax question 200/20k

iam.friend · #1 03-10-2019

i was searching forum for a while, but it looks like there is only one way to avoid tax limit on eBay Stealth accounts....to get more accounts

Is there any possible way of purchasing stealth US account over here without that limitation?
I would rather get 1 eBay account and take good care of it instead of owning 3-5 etc small volume accounts...

Please excuse me if that particular question was previously discussed before.

Sunspot144 · #2 03-10-2019

Unfortunately no way to avoid the 200/20k self employment tax unless, like you said, use multiple, smaller accounts.

In some states the limits are even lower - MA and VT - so best to avoid PP accounts established in those states.

degsey69 · #3 03-10-2019

You can always open a LLC legitimately with a member partner to use their name to create the accounts and use the EIN of the company to get around the 200/20K. Otherwise there is no get around the limit.

rsot · #4 03-10-2019

Welcome to the forum - all the best as you master stealth

Sunspot144 · #5 03-10-2019

Dont think OP wants to pay taxes for some reason :P

rsot · #6 03-10-2019

Quote:

Originally Posted by Sunspot144

Dont think OP wants to pay taxes for some reason :P

Nice and legal

Leader2dark · #7 03-10-2019

I just pray the limits are not lowered even further...

agent006140 · #8 03-10-2019

Quote:

Originally Posted by Leader2dark

I just pray the limits are not lowered even further...

200 transactions AND 20,000 dollars is pretty fair,many ebay sellers never reach that limit

Sunspot144 · #9 03-10-2019

Quote:

Originally Posted by agent006140

200 transactions AND 20,000 dollars is pretty fair,many ebay sellers never reach that limit

You're okay with it if limits were lowered?

agent006140 · #10 03-10-2019

Quote:

Originally Posted by Sunspot144

You're okay with it if limits were lowered?

many sellers sell low price items,so they have met 200 transactions but not $20k.
to collect 20k in payment for 200 transactions,your average sale price plus shipping would be $100 a piece.

Sunspot144 · #11 03-10-2019

Quote:

Originally Posted by agent006140

many sellers sell low price items,so they have met 200 transactions but not $20k.
to collect 20k in payment for 200 transactions,your average sale price plus shipping would be $100 a piece.

Mhmm. And 20k is 2,500 $8 dollar transactions. That's about 1.5mo worth of sales for me.

Point being, lowered limits isn't good for anyone

Leader2dark · #12 03-10-2019

The official limits can be anything, but if PayPal starts asking for info after a low number of sales, we all screwed.

agent006140 · #13 03-10-2019

Quote:

Originally Posted by Leader2dark

The official limits can be anything, but if PayPal starts asking for info after a low number of sales, we all screwed.

the whole idea of 20 plus 200 is to send you a 1099 form,there is no reason for Paypal to lower the threshold unless IRS makes changes.

Sunspot144 · #14 03-10-2019

Quote:

Originally Posted by agent006140

the whole idea of 20 plus 200 is to send you a 1099 form,there is no reason for Paypal to lower the threshold unless IRS makes changes.

Think you missed what was said

iam.friend · #15 03-10-2019

Thank you, everyone, for sharing useful information. I do not want to pay taxes from the small accounts that i do not care about, but paying taxes (a reasonable amount ) from the nice and established account won't be a huge issue.

agent006140 · #16 03-13-2019

Quote:

Originally Posted by Leader2dark

The official limits can be anything, but if PayPal starts asking for info after a low number of sales, we all screwed.

now I recall someone posted on Paypal forum that Paypal has started asking for SS number before the 200/20K limit,the reason is she is getting close to that limit.

Leader2dark · #17 03-13-2019

Quote:

Originally Posted by agent006140

now I recall someone posted on Paypal forum that Paypal has started asking for SS number before the 200/20K limit,the reason is she is getting close to that limit.

This has been known for a long time. Around 150 items sold they start asking for sure.

Can be much earlier as well.

Maybe someday they ask after 10 items sold, then we all screwed.

agent006140 · #18 03-13-2019

Quote:

Originally Posted by Leader2dark

This has been known for a long time. Around 150 items sold they start asking for sure.

Can be much earlier as well.

Maybe someday they ask after 10 items sold, then we all screwed.

could it be business account vs personal account?
if you have a personal Paypal account,Paypal assumes you are just selling whatever you have around house but if your activities ramp up,it would ask you to upgrade to a business account

monstermaash · #19 03-13-2019

Damn, im nearing the dreaded 200/20k threshold and thinking of getting another account. With the change thats gonna happen at the end of the month, it'll be a bit apparently harder to manage USA stealth accounts due to more verification needs. Should i just get a canadian account? Do i have to worry about the threshold with a canadian account too?