natalieg

I recently visited with our accountant and got some disturbing news. I can't remember exactly what she said, where it is in the progression, but, the government is trying to be able to access PayPal for income purposes. I don't know if this is a definite thing or just in the plans....I am hoping it doesn't happen.
I know several of us from the board here will "gift" money through PayPal, but if they use it to start attaching as income, I am considering just selling for cash, check or money order when I sell anything on here or eBay. I would assume that if they saw several "gift" transactions throughout the year that would possibly be a red flag.
My understanding is that if this goes through, they will be going for any place that accepts payments like PayPal does.
Sad day.....

Shirleyg

How Awful, nothing is safe anymore.

Shirleyg

How Awful, nothing is safe anymore.

Momof3Es

That would be totally rotten!! Why can't these people just let it be!!?? If all of the huge beauacrats sp? would take a pay cut and live like normal human beings things would maybe be better!

Sorry I will get off my soap box now. Sorry I lost control! I will be good now promise!! Thanks

Candace

I don't "gift" anything through paypal as it's not safe as a buyer. I pay via paypal only through my credit card. That way any transaction is always disputable.

Prism99

I think, if this happens, it will be quite a large sum of money before they start looking at it for tax purposes. Seems to me I read recently that if you receive more than $30,000 (? could have that number wrong) as an Amazon vendor or half.com/eBay vendor that it will be reported to the IRS as income. They are probably trying to arrange something similar with PayPal.

Edit: Okay, I found a link similar to what I was remembering. Here it is:
http://www.weberbooks.com/selling/20...-purposes.html

Krystyna

Don't forget, if you are selling anything on eBay, you can then get into business deductions. Whether or not you get a sole proprietorship / DBA, everything you buy is deductable as well as the space you use in your home for the business. I have a Paypal business account and use the debit card for postage and purchases - even household purchases - and end up getting cash back which offsets their fees. And, of course, the fees are a business expense and deductable!

As for the level of reportable income, it might be $750. It is for most affiliates, mystery shops, etc.

quilting cat

I prefer not to sell for paypal because I don't know how to get the money out other than to spend it through pp!
Small transactions like many of ours shouldn't be taxable. We're not making any profit selling property for 60% retail!
Do they want to tax what we "earn" having a yard sale?

Krystyna

You can download it into your bank account at no cost.

ptquilts

you can get money out of Paypal by having it sent to your bank, free.