Quote:
Originally Posted by robw1959
I think it was worth it. He had it on eBay for $8500, so he would have only netted around $7500 assuming a buyer would have paid his asking price. I offered $8K through PayPal, so with their 3% Goods & Services fee, he still would have netted around $7750 for the sale that way, and I would have saved $500.
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Probably ends up netting even less than that though. Don't forget the federal, state, and maybe even local income taxes he could end up owing on the sale, depending on what his tax cost basis was that he had in the card, and whatever else might be on his tax return. He could also possibly end up owing self-employment taxes on the profit from the card sale as well, if he ends up filing as a dealer in business. He did use Paypal G&S, so he was going to get a 1099-K form showing and reporting that sales income to the IRS in 2023 for sure. And given the recent one-year deferral of the lowered reporting threshold for reporting such sales on 1099s, I don't think we'll see any more deferrals after this one.