Payment on Classifieds question

or however that dang word is written! : ) Use this forum to discuss those things that are related to, directly, or indirectly, fly fishing, i.e., tackle, catalogs, single malt scotch, cigar preferences, pipes, camera gear, etc. This is sort of an off topic area but one related to bamboo and fly fishing.

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Brooks
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Payment on Classifieds question

#1

Post by Brooks »

I'm getting ready to sell some more tackle on the classified section here. In the past, I sold a number of rods and used my wife's paypal account, which worked great. I'm a bit of a a troglodyte and don't have my own paypal account (never even had facebook).

I'm considering getting a Venmo account (my very hip niece assures me it is the way to go) , so that buyer's have the option of paying thru Venmo, or paypal, or the old tried and true personal check that has to clear first, before I ship. Any advice here? I am worried about my patience, or lack-thereof, in navigating a new payment system.

Teaser here: I'll have some cool stuff for sale---new never used Hardy's made in Alnwick in 1998, with a 1999 Catalog with each reel, including a St. George Junior repro, a 1903 Bougle' repro, a Hardy Ultralight Disc, Several Souvereign 2000's, all never used, salesman's samples.

3creeks
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Re: Payment on Classifieds question

#2

Post by 3creeks »

I think VENMO is better than PayPal but it has daily limits. I'm 60 but I like both of them and I will add a third option of Zelle through your bank. PayPal is the oldest and most tried and true method, though.

406tom
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Re: Payment on Classifieds question

#3

Post by 406tom »

Keep in mind Paypal reports any transaction over $600.00 to the IRS as income. It's on you to prove that you sold it for a loss which involves saving original receipts, etc. to prove your case. I do a ton of Paypal for my business so the little bit they report doesn't really affect me. Still annoys me though. Don't know about the other two.

Tom

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corlay
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Re: Payment on Classifieds question

#4

Post by corlay »

paypal is the only of the payment options mentioned, that affords a Buyer any protections against fraud.

I would never purchase from an “internet stranger” with venmo or zelle, but maybe thats just me.

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Brooks
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Re: Payment on Classifieds question

#5

Post by Brooks »

So , just to be paranoid here (I’m good at it;-) , how would a stranger potentially rip me off with Venmo or zelle?

JoeBolt
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Re: Payment on Classifieds question

#6

Post by JoeBolt »

I've both sent and accepted cash via Zelle, backed by my secure Wells Fargo account, and I can't see how getting paid via Zelle presents any risk, imo.

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tiptop
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Re: Payment on Classifieds question

#7

Post by tiptop »

You, as the seller, wouldn't be at risk using Venmo or Zelle but the buyer would be. Pretty much the same as the buyer sending a check or money order - he trusts that you'll send the item once the check or money order clears. If you sell more than $600 through paypal, you'll need to give them your SS number so they can report your "earnings" to the IRS. Given all the security breaches in large companies, I'd rather not give anyone my SS number unless absolutely necessary. If your sales are profitable, you do in fact owe tax on the profit. If you're a hobbyist selling at a loss you don't owe tax on the sales but you may have to prove it to the IRS.

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Short Tip
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Re: Payment on Classifieds question

#8

Post by Short Tip »

Venmo and Paypal are the same company. Just like Paypal, Venmo has a "personal" way of getting money, with no fees and no protections for the buyer, and also a "business" way which charges fees and offers buyer protections, it also issues a 1099. Functionally there isn't much difference. I use both for selling tackle at shows and gatherings, but for occasional tackle sales on line I'd probably just stick with Paypal.

I've never worried much about the 1099, if you're a hobbyist it won't take much effort to show a loss or a break even. The IRS is targeting shadow businesses, not hobbyists. I'm sure you wouldn't be surprised at how much business was conducted using Paypal without a dime of taxes being paid. Ebay "stores", etc.

AlexP
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Re: Payment on Classifieds question

#9

Post by AlexP »

Hello, I use Venmo all the time for transactions with friends (restaurant bills, chip in for gifts) and kids activities (soccer expenses among the teams).

I prefer it to personal checks. I barely use personal checks, but they include my name, address, ABA number, Account Number, Bank and signature. That is a lot of information!

Agree that the Buyer does not have recourse. I just need to do my due diligence on the seller…

So far, all good transactions in this board….

Tight Lines!

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Flykuni3
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Re: Payment on Classifieds question

#10

Post by Flykuni3 »

I've experienced only one problem over the years, on board or off -- one dealer advertised a short Heddon, and I bought it. When it arrived it was the wrong Heddon rod (he had three listed). Dealer acknowledged the mistake and refused to make good on the deal. I sent it back and received a refund. I will not deal with that shyster again.

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corlay
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Re: Payment on Classifieds question

#11

Post by corlay »

Short Tip wrote:
11/15/22 07:04
Venmo and Paypal are the same company. Just like Paypal, Venmo has a "personal" way of getting money, with no fees and no protections for the buyer, and also a "business" way which charges fees and offers buyer protections, it also issues a 1099. Functionally there isn't much difference. I use both for selling tackle at shows and gatherings, but for occasional tackle sales on line I'd probably just stick with Paypal.
For you to use Venmo for "purchases", with some Buyer's Protections, the Seller must already have a "Qualified Business Account" and the Buyer *must* designate the transaction as "goods and services". There are very specific criteria for dispute resolution. Seems nit-picky and complicated, to me. Paypal dispute resolution is very easy.

https://venmo.com/legal/us-user-agreeme ... se-program

bassman
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Re: Payment on Classifieds question

#12

Post by bassman »

Personally, I have reached the point where the only way I'll do any transactions anymore is with a check or MO. Paypal has links to any moneys to IRS like mentioned. I have received a couple of PMs from people ripped off by sending money through Venmo which has no protection for buyer. If a person has been on board for years and participates I send item either when I get check or before. If it's a new person I'll wait until check clears my bank and theirs. I did paypal for years but not with the IRS connections anymore. I had a couple of high priced rods I've sold at a small loss. Without proof I had a loss I'd have been taxed on full amount. I'm old and gone back to a handshake and a check with other members.

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Short Tip
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Re: Payment on Classifieds question

#13

Post by Short Tip »

corlay wrote:
11/15/22 12:57
Short Tip wrote:
11/15/22 07:04
Venmo and Paypal are the same company. Just like Paypal, Venmo has a "personal" way of getting money, with no fees and no protections for the buyer, and also a "business" way which charges fees and offers buyer protections, it also issues a 1099. Functionally there isn't much difference. I use both for selling tackle at shows and gatherings, but for occasional tackle sales on line I'd probably just stick with Paypal.
For you to use Venmo for "purchases", with some Buyer's Protections, the Seller must already have a "Qualified Business Account" and the Buyer *must* designate the transaction as "goods and services". There are very specific criteria for dispute resolution. Seems nit-picky and complicated, to me. Paypal dispute resolution is very easy.

https://venmo.com/legal/us-user-agreeme ... se-program
Yes, that's correct. And that's when they take fees similar to paypal. I like it for shows since I have a QR code for customers to scan and pay me through their phone, if they're already Venmo users. Some prefer that to using a credit card. I specify goods and services. It's just an added way to do a thing.

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Brooks
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Re: Payment on Classifieds question

#14

Post by Brooks »

Thanks guys. Turns out my bank is set up with Zelle, so I will consider that option along with Paypal and checks.

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dnester
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Re: Payment on Classifieds question

#15

Post by dnester »

Recently completed Sale of numerous items of Classic Tackle .

All Sales were through a Classified Ad . on the CLASSIC FLY ROD FOPRUM . All Sales used Check payment or equivalent .
All items were Sold and Payment was not an issue . With messaging , I actually shipped all items when payment received.
No problems !
Even Sold my Property !

Great Service,
DD Nester

PYochim
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Re: Payment on Classifieds question

#16

Post by PYochim »

406tom wrote:
11/14/22 21:03
Keep in mind Paypal reports any transaction over $600.00 to the IRS as income. It's on you to prove that you sold it for a loss which involves saving original receipts, etc. to prove your case. I do a ton of Paypal for my business so the little bit they report doesn't really affect me. Still annoys me though. Don't know about the other two.

Tom
And there are provisions for 87,000 new IRS agents. They will be looking for something to do. Just something to consider.
Last edited by PYochim on 12/09/22 13:13, edited 1 time in total.

jim royston
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Re: Payment on Classifieds question

#17

Post by jim royston »

Ebay doesn’t like it, and I suspect neither does PayPal. I have received several requests from Ebay to sign their petition, which I do. I have not listed one bloody thing on Ebay this year and I won’t with this ridiculous rule in place. I already give my accountant a stack of papers for me and my wife. I could just imagine giving him a 1099 with a figure that I can’t determine what is my cost basis, etc.

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creakycane
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Re: Payment on Classifieds question

#18

Post by creakycane »

Another reason to box up rods and reels to sell, and work with a trusted dealer.

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JohnMD1022
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Re: Payment on Classifieds question

#19

Post by JohnMD1022 »

US Postal Money Orders of less
Than $500. If you sell an item for $700 request 2 MOs of $350 each, for example.

Remember, your bank will also report transactions of over a certain amount.

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bamboo rodley
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Re: Payment on Classifieds question

#20

Post by bamboo rodley »

Hopefully, even with the potential increase in the number of IRS employees, they will have bigger fish to fry than individuals who don't pay $40.00 or $50.00 in tax on sold fishing equipment. I can understand where a regular vendor should take concern, but realistically I don't think someone who makes a few sales a year needs to worry. But that's just me, and I very rarely sell anything online.

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