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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?
We're business people. We're in business. We sell to you and our PayPal fees are our cost of doing business. If we don't want to pay the fees, we can wait on a check. Well, that's the way I see it anyway.
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.
ummmmmm lemme see here
get paid via PP, instantly, and pay for the convenience
or
trust the mailman :k
PAYPAL :winner:
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.
You wouldn't pay taxes on the full 10KQuote:
Originally Posted by jghilino
Use SCH C and deduct all costs associated with getting that 10K
Pay taxes on amount left after deductions
i would tell them no, and if they had a problem with that, i would take my business to a bona fide business
Quote:
Originally Posted by jghilino
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.
ok so 20k per person so a family of 4 can take in 80k in online payments with no statements generated, sounds good to meQuote:
Originally Posted by PartTimeScrapper