ed123
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posted on December 23, 2000 11:07:31 AM
Hi, maybe someone can help me out with these questions. I recently moved to a premier (up from personal) account on Paypal. Do they repot to the IRS the amount of funds transfered to an individual account there?
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Zazzie
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posted on December 23, 2000 11:19:49 AM
They report if you choose to have the Money Market account and earn interest on any balance that you leave there
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dman3
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posted on December 23, 2000 12:09:23 PM
They dont actually Report the income to the IRS what they do is the same as what your bank does for all your saveing and checking account they send you a form giveing the interest on your accounts you are aupose to add this to your taxes and report it as income.
99% of the time the statement we get at the end of the year amount to under $10 to $20 and our accountant says hold it till next year incase the rule is if all your extra income includeing earned interest and all added togeather is under $400 you dont need to report it what you would do in this case is hang on to it each one over 3 years if it still dont add to $400 to file on you can dump the frist year forms you saved hold the last two wait till the next year the frist time you get interest and income for one year or the last 3 year that adds up $100 to $400 or more then you add it to your Income.
My Interest from X.com last year was less then .80 these ammounts are unreportable
http://www.Dman-N-Company.com
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unknown
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posted on December 23, 2000 01:44:18 PM
You should be worring about the interest thats trivial.
It's all the reciepts into the account that are taxable.
And unless you file your taxes right declaring all those receipts and deducting all your expenses, you may end up paying much higher taxes later.
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ed123
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posted on December 23, 2000 01:50:34 PM
If I just have premiere and not business then I have no limit to recieving but am not earning interest, If i understand right. So that means they arent reporting to IRS cuz theres no interst, right?
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magazine_guy
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posted on December 23, 2000 02:03:17 PM
Your odds of getting competent tax advice here are pretty slim, I think.
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ed123
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posted on December 23, 2000 02:04:42 PM
Im not asking for tax advice, but rather what paypal does with each type of account. Like isnt that the difference between premier/business?
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vargas
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posted on December 23, 2000 05:08:41 PM
ed123-
The only difference between a premiere and a business account is that you can use your business name on a business account.
Other than that, the accounts are identical.
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dman3
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posted on December 23, 2000 05:40:23 PM
I have to agree its not the interest you should worry about but Worry more about reporting the income in the account your earning on.
http://www.Dman-N-Company.com
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retired2late
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posted on December 23, 2000 06:53:26 PM
PayPal would not be reporting anything to the IRS except interest THEY paid you on funds you invested with them in their interest bearing accounts. They would have no reason to report other transactions, any more than your bank would report to the IRS amounts of transactions in your checking account. First off, PayPal wouldn't know if the money coming into your account counted as income to you. It might be a loan repayment from your kid, or a birthday present from Great Aunt Sally. Secondly, even if it did count as income to you, it wouldn't be PayPal's business to report that to the IRS. It's YOUR responsibility to report non-salary income, take appropriate deductions, and pay taxes on the rest.
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jwpc
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posted on December 23, 2000 07:03:18 PM
All charges leave a paper trail - but if you aren't doing anything illegal you won't have anything to concern yourself about.
There are huge, legal write offs in this business if you have a savvy accountant. We have used a CPA firm that specializes in the self employed, and they have done a fantastic job for us for 15 years – they are so good that even though they are in Indiana and we are in the deep south, we have continued to use them.
But as I said – if you aren’t doing anything illegal – not to worry.
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