PayPal Friends & Family listings. Why is this becoming so common?


I think most sellers now realize they are not going to have a taxable profit. 

The F&F listings at market price don't seem to sell. 

It seems like buyers demand around a 20% discount to take on the added risk of F&F. 

I'm really just curious to hear what buyers & sellers think of this practice.  

seanheis1

lalitk

I am curious, all those opposing F&F option, would you be willing to pay PayPal fee?

Probably, although the preference for F&F would be a red flag for me. But I may not be typical because I don't often buy used equipment.

Due to the amount of internet thievery, I will never purchase any item under the F&F option.  I see F&F and I immediately mistrust the transaction and/or the dealer.

 

I use F&F with sellers that I have had 1 or 2 successful regular transactions.

As for selling and the 1099 the obvious problem is proving what you paid for the item. New stuff I might have a receipt but who keeps that stuff beyond the normal non-business record keeping requirements? I keep 7 years just in case the IRS tries to claim fraud in my return. No records of what I bought on eBay beyond what eBay allows me to see.

The bigger issue in all of this, is that, the scumbag (D) party. made the IRS and Tax changes.  Remember when internet purchases were reporting/tax free?

 

Happy Listening!