What would you do?

Just curious for all out there who use paypal for your business payments. Would you send the money marked as friends and family to avoid the other end having to pay fees when its for items you purchased as a business transaction? Seems to me this would be unethical and illegal?

I thought we were all friends on here.
But yes like you said illegal or unethical, like lowering the value of something sent to an overseas address to lower the amount of taxes to be paid, or calling someone collect and them saying no, and calling the person back.

Rather do it the proper way and show expenses against the income to offset it. That is the best way. Reinvest in merchandise and equipment. As long as your not showing a loss every year you shouldnt get audited. Show a small profit and pay taxes on it, dont get greedy.

Everyone is allowed $10k a year in online payments before it shows as taxable income. Everything must be kept 100% separate. Each person must have there own email address and own paypal account. Make sure to keep it under 10k per paypal account per year. As soon as it goes over 10k you pay taxes on the whole thing.

Originally Posted by jghilino

Rather do it the proper way and show expenses against the income to offset it. That is the best way. Reinvest in merchandise and equipment. As long as your not showing a loss every year you shouldnt get audited. Show a small profit and pay taxes on it, dont get greedy.

Everyone is allowed $10k a year in online payments before it shows as taxable income. Everything must be kept 100% separate. Each person must have there own email address and own paypal account. Make sure to keep it under 10k per paypal account per year. As soon as it goes over 10k you pay taxes on the whole thing.

Its 20k unless they changed it for 2013.

Since the payments you are making are a write off best to show it in the Paypal business column.