When to send money via PayPal Friends and Family

[cmbicycles]

I'm curious if receiving F&F payments still factor into the $600 threshold for a 1099 at the end of the year. If not, it would make for easier to sell off excess stuff without worrying about a paper trail to show no profit for tax season, but I doubt it works that way.

[prototoast]

Originally Posted by cmbicycles

I'm curious if receiving F&F payments still factor into the $600 threshold for a 1099 at the end of the year. If not, it would make for easier to sell off excess stuff without worrying about a paper trail to show no profit for tax season, but I doubt it works that way.

F&F generally are not included in 1099 reporting, though I believe PayPal does reserve the right to include them if they have reason to believe you are using F&F for business transactions.

[ripvanrando]

The rare times I have used Paypal family and friends is for lower value goods and only when the forum member is a long standing one and only on places like this one. A 200 dollar item isn't much risk but a $1000? No thanks.

3% is cheap protection.

Over the past 20+ years, I have had two issues and PP refunded my money. The seller did not deliver the goods ($350 TT helmet) and despite innumerable emails, he did not respond. Radio silence. I sent the communications to PP and they refunded. The other time was a defective product and again, pictures and correspondence to the seller who basically was unresponsive. After some weeks, I filed a complaint with the documentation and was eventually paid the $900. I repeatedly asked the seller for the address to return the product and they never responded. OTOH, someone tried to get a refund from me because UPS drove over the package with a forklift. Unfortunately, the buyer informed me and UPS several weeks after accepting the shipment. Weird. UPS would not accept the claim and I refused to pay for the damage (it was a $1000 item). PP did not accept his claim. This guy sent me emails for a few years. Moral of the story is inspect immediately, don't accept it if the package has forklift tire tracks on it, and take pictures and act immediately. If you do friends and family, you are pretty much out of luck.

[bambam]

I, like you, offer to pay the 3%.
Like others said, small price to pay for protection.

Sometimes I assume the seller means to say F&F but doesn't. Maybe they say "net" and I include the 3 % when I pay.

I too would be suspicious.

Also as others have stated before price of items(s) do factor in.

for 600 I would not do F&F.

Seller may be able to insure on their side when shipping as well. That's their responsibility to protect themselves if they see fit. Same as its mine to protect myself.

Good luck in your decision,
Bambam

[AngryScientist]

call me crazy, but if i use paypal's service i abide by their user agreement and use goods and services if i'm paying for goods or services.

[e-RICHIE]

Originally Posted by AngryScientist

call me crazy, but if i use paypal's service i abide by their user agreement and use goods and services if i'm paying for goods or services.

Agreed. Otherwise you're simply gaming the system.

[RoadWhale]

I sincerely appreciate the feedback.

[robt57]

Originally Posted by e-RICHIE

Agreed. Otherwise you're simply gaming the system.

And when a seller asks, it shows me the probably direction if there is a problem if skating is their starting point.

Another is someone asking me if I will get the bike they are buying warrantied in case of a future issue because I am the orig purchaser.

So you want a condition of the sale for me to commit to future fraud, OK... bye...

[e-RICHIE]

Originally Posted by robt57

And when a seller asks, it shows me the probably direction if there is a problem if skating is their starting point.

Another is someone asking me if I will get the bike they are buying warrantied in case of a future issue because I am the orig purchaser.

So you want a condition of the sale for me to commit to future fraud, OK... bye...

Just today, and within the last hour, I had a commercial entity give me a total for the parcel of goods I ordered. There were two numbers. One added the PayPal fees to the other so I could see the amount I'm asked to send. And the vendor requested a Friends and Family transmission. Sure. That's classy.

[s4life]

The answer is never unless they are family or friends.