Questions about selling on LoupeTroop

[CaseyLouLou]

Has anyone had problems or bad experiences selling items on Loupe Troop?

One time I had someone ask to use PayPal goods and services and I just had a bad feeling that they were going to file a complaint to get their money back and I would lose the item.

I have also had weird vibes recently from someone asking me for my best price if they buy today. Now with the way PP is reporting for tax purposes I’m not sure I even want to use it to accept payments. Are there any other options?

What’s the safest way to sell items and exchange money on LT? Thank you.

 

[fredflintstone]

PayPal.

 

[PrecisionGem]

I think PayPal only reports for taxes if you sell over $20,000. I may be wrong, but I think in the past that was the case.

 

[CaseyLouLou]

I think PayPal only reports for taxes if you sell over $20,000. I may be wrong, but I think in the past that was the case.

They just changed it to $600. Crazy for people just selling personal items.

 

[Bron357]

It’s a two way street.
You as the seller want “friends and family” so you are safe against fraud etc and the buyer wants “goods and services” in case you send them an empty box.
Obviously if the buyer or seller is someone here with Pricescope presence it’s much more comforting and feels safer.
And it’s not necessarily suspicious if someone asks “your best price if I buy today”, these days everyone wants to get a lower price and education, ethnicity and age of the sender = different styles of message.
And some are polite and courteous “dear seller, what would be your lowest price please, many thanks”.
Others are like “Yo ! Best price ?????” and even stranger enquires.
One which I actually received was “I know it’s a lot to ask but I’ve always wanted xyz my whole life but I don’t have any money at the moment because Im out of work because I have cancer but it would mean so much to me if you could find it in your heart to send it to me. God Bless You and thank you for your kindness”.
Yep.

 

[CaseyLouLou]

It’s a two way street.
You as the seller want “friends and family” so you are safe against fraud etc and the buyer wants “goods and services” in case you send them an empty box.
Obviously if the buyer or seller is someone here with Pricescope presence it’s much more comforting and feels safer.
And it’s not necessarily suspicious if someone asks “your best price if I buy today”, these days everyone wants to get a lower price and education, ethnicity and age of the sender = different styles of message.
And some are polite and courteous “dear seller, what would be your lowest price please, many thanks”.
Others are like “Yo ! Best price ?????” and even stranger enquires.
One which I actually received was “I know it’s a lot to ask but I’ve always wanted xyz my whole life but I don’t have any money at the moment because Im out of work because I have cancer but it would mean so much to me if you could find it in your heart to send it to me. God Bless You and thank you for your kindness”.
Yep.

All good points.

 

[AnastasiaBeaverhausen]

They just changed it to $600. Crazy for people just selling personal items.

Well that's depressing.

 

[CaseyLouLou]

Well that's depressing.

I’m not a tax expert but I think if you are selling a personal item at a loss then you don’t owe any tax.

 

[Mreader]

They just changed it to $600. Crazy for people just selling personal items.

The same rule for Poshmark. Poshmark!!! Where a $50 sweater will probably sell for $10. It’s maddening.

 

[Mreader]

I’m not a tax expert but I think if you are selling a personal item at a loss then you don’t owe any tax.

I think this is true too but I just hope it doesn’t involve annoying paperwork.

 

[shelovesinclusions]

If I'm buying on LT, I sometimes will request to use g&s, and offer to pay the fee because I did get scammed by a seller (from a different site) who sent me something totally different than what was agreed upon. I had zero recourse because I used f&f. It was a nominal monetary loss, and I accept my responsibility in engaging in a risky transaction, but the 3% fee may have gotten me a refund, or at least an opportunity to dispute. But, Paypal I've heard can be a PITA for some claims.

I also like shipping insurance for similar reasons- after having received a signature required empty package I was able to get refunded by USPS and the seller didn't lose their money. I forget which type, but parcels are weighed along their route. So if you sell g&s with signature required/insured packages- I don't think someone can easily scam through a "the box was empty" dispute. Make sure you document everything start to finish with pictures, clear & descriptive conversations, and shipping by person-to-person handoff vs using a drop box. That being said, it makes me a nervous wreck to post stuff on LT.

But also, when I put up listings on LT I got like 20-odd emails that resulted in 4-5 seriously interested people. And some inquiries were flat out weird and didn't look composed by humans.

 

[sydneyatl]

And some inquiries were flat out weird and didn't look composed by humans.

Not on loupetroop, but once I got an inquiry on something I was selling that just asked me where the nearest Walmart was. What do you think I am, Google maps??

 

[kgizo]

I’ve used Venmo (similar to PP F&F so there has to be trust in the transaction). Think when people are newer to LT they want PP non F&F, which is understandable. There is risk even when purchasing from a business (Believe a few people had bad experiences with IDNID lately). Trust your gut and good luck with your sale.

 

[fredflintstone]

It is $20,000 before PayPal will report and send a 1099 form for income tax.

Will PayPal report my sales to the IRS? | PayPal US

Learn how PayPal is required to report sales above a threshold and also know the 1099-K requirements.

www.paypal.com

 

[fredflintstone]

Buying gemstones or any merchandise online is an act of trust. Especially the gemstone business is a business of trust. If you have problems with that, then buy from your local jeweler, but you can bet the farm they will sale a similar piece of jewelery or gemstone for 300% to 1000% mark up.

PayPal is your best option buying and selling gemstones online. I started around 2002 or 2003 using PayPal, thousands and thousands of PayPal invoices sent out to buyers and thousands of transactions with buying from my sources. I never have had a problem, though I was in the business of buying and selling gemstones from years long contacts. I do admit there was some stones I kept I should have sent back but that is like 1 for every 1000 stones bought.

Like anything, buyer beware. Buyer, do your homework. Buyer, have a 3rd party arbitrator that has the power to bend the will of the seller/buyer you have a problem with in a transaction. PayPal is such a power.

 

[2Neezers]

Here’s a Q & A I found with the 2022 updated info. I need to sit down and read this when I have more time and figure out what‘s going on too.

New U.S. Tax Reporting Requirements: Your Questions Answered

How these new tax reporting changes may impact you when paying or accepting payments with PayPal and Venmo for goods and services.

newsroom.paypal-corp.com

I almost always sell things at a loss, but wonder how we need to track this for tax reporting? Would a spreadsheet be good enough? I definitely don’t have the receipts for the many purses I bought years ago and plan to sell on eBay this year! I have better records of gems and jewelry, but they’re still not great.
I also know the IRS is already a cluster. I have no idea how they’re going to handle adding keeping track of this situation while dealing their current issues.

 

[fredflintstone]

Here’s a Q & A I found with the 2022 updated info. I need to sit down and read this when I have more time and figure out what‘s going on too.

New U.S. Tax Reporting Requirements: Your Questions Answered

How these new tax reporting changes may impact you when paying or accepting payments with PayPal and Venmo for goods and services.

newsroom.paypal-corp.com

I almost always sell things at a loss, but wonder how we need to track this for tax reporting? Would a spreadsheet be good enough? I definitely don’t have the receipts for the many purses I bought years ago and plan to sell on eBay this year! I have better records of gems and jewelry, but they’re still not great.
I also know the IRS is already a cluster. I have no idea how they’re going to handle adding keeping track of this situation while dealing their current issues.

Here is a article that answers the question. Yes, you must report $600.00 worth commercial transactions in a years time using PayPal invoices or sending money "goods and services" starting January 1, 2022.

Venmo, PayPal and Zelle must report $600+ in transactions to IRS

Starting Jan. 1, mobile money apps like Venmo, PayPal and Cash App must report annual commercial transactions of $600 or more to the Internal Revenue Service.

www.nbcnews.com

 

[2Neezers]

Here is a article that answers the question. Yes, you must report $600.00 worth commercial transactions in a years time using PayPal invoices or sending money "goods and services" starting January 1, 2022.

Venmo, PayPal and Zelle must report $600+ in transactions to IRS

Starting Jan. 1, mobile money apps like Venmo, PayPal and Cash App must report annual commercial transactions of $600 or more to the Internal Revenue Service.

www.nbcnews.com

That is true, but since most of us are selling things at a loss, this says it will be handled differently. I’m just not sure what proof they would need to see to show that it was sold at a loss, if we don’t have the original receipts. I’ll be sure to ask our accountant when we meet with him, but that won’t be for while yet.

 

[fredflintstone]

That is true, but since most of us are selling things at a loss, this says it will be handled differently. I’m just not sure what proof they would need to see to show that it was sold at a loss, if we don’t have the original receipts. I’ll be sure to ask our accountant when we meet with him, but that won’t be for while yet.

Yes.

Let me say this. Many of my sources would only want me to send "Friends and Family" to navigate around the 4.99 percent that Paypal charges in Asia for invoicing fee. With that said, I always wrote in the note of payment that I was paying for gemstones for my business, and I did deduct this for my income tax. There was only a few sources I would do this for over years of business and trust. The IRS never did audit me and I never tried to declare more business expense than I actually had. I also used an accountant.

But yes, if you sale a lot of merchandise for a loss, then you will have to prove that should you be audited, but truth be known, the disarray the IRS is in now and the past, they just do not have the manpower to audit or even check for possible audit every little fish in the ocean. Still, it is prudent to have all your records in order less the duck swallows the fish.

 

[Slickk]

Since this has been on my mind with tax season upon us.. this is nice news for those of us who sell on LT for a loss usually.

IRS Form 1099-K: Will You Get One for 2023?

A new IRS 1099-K tax reporting requirement for payment networks like Venmo, PayPal, Amazon, and Cash App won't apply for 2023.

www.kiplinger.com