Koala-T
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Thanks, but I knew that. I'm looking specifically for the PayPal answer.Spoo just mails a check, Fwiw.
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Thanks, but I knew that. I'm looking specifically for the PayPal answer.Spoo just mails a check, Fwiw.
Hmm that is a good question. Technically, I believe the person who is receiving the payouts, (especially if they are selling a lot through you) is required to pay taxes on the income. The Goods and Services allows paypal to track that income for the IRS. Not sure what your (our) legal obligation is on how we send payouts. Certainly would raise red flags in an audit situation, if we were claiming the payout as a business expense, but there was nothing on the other end.Question for consignors:
When you do your payouts, if you transfer via Paypal, is it legal to transfer their money as "Friends & Family" rather than "Goods & Services"?
Thanks, Wes. Glad to know I'm not alone in wondering about this. Do we have any tax law professionals who would like to weigh in?Hmm that is a good question. Technically, I believe the person who is receiving the payouts, (especially if they are selling a lot through you) is required to pay taxes on the income. The Goods and Services allows paypal to track that income for the IRS. Not sure what your (our) legal obligation is on how we send payouts. Certainly would raise red flags in an audit situation, if we were claiming the payout as a business expense, but there was nothing on the other end.
Why can't you change the shipping info? Do you have bids?A little shipping/customer service advice?
I listed a fedora with a fairly wide brim, which means it'll need a box at least 14x16x8. I got a message from a potential bidder in Pennsylvania (I'm in WA state) saying, "almost 60 to ship this .really"
It's a bit passive aggressive, but he's right. I ship Priority Mail, and even though it would be ~$6 to ship in WA, it's nearly $52.19 to PA. Oddly though, Priority Mail Express is only $32.46. I wouldn't have expected 1-day shipping to be cheaper than 2-day, but there you go. Standard Post is waaaaaay cheaper, and it looks like I can get tracking info if I get it at the post office.
So what should I do? I'd be happy to ship by a cheaper service, but I can't change the shipping info on my listing. Please advise!
Why can't you change the shipping info? Do you have bids?
Well, what I've currently been doing is giving people the option of a Goods & Services Paypal transfer or a personal check. In all cases, they've chosen the Paypal Transfer, but the conversation has come up so I'm trying to get concrete info one way or the other. I don't have hundreds of consignors, in fact I have less than 10, and most of them get a few hundreds of dollars per month.I'm sure PayPal would question if you're sending hundreds of people hundreds of dollars as Family and Friends as weird. I'd build it into consignment costs and pay the fee yourself.
Quote: Personally I would ask your accountant. Not sure I would want to give/receive tax advice from people who arnt responsible for my taxes should an issue arise down the line. Oh yea, IRS, the guy on Styleforum said to do it that way...Not sure he would like that answer
Probably very true. I just think of paypal/taxes/accounting as things I don't like to screw with and make sure it's done right.Its less about taxes and more about policy within the merchant services you are using. I doubt the IRS cares how you pay your clients, as long as you can prove it. People get paid in cash, check, deposit, stocks... IRS just wants to know everything is accounted for, everything is deducted correctly.