|
 |
|
|
|
07-02-2006, 05:17 AM
|
Taxes and Paypal?
|
Posts: 1
|
Ok, so I want to know... what do you do with Paypal Stuff.... Do you file every expense and every income so that you pay taxes on the least amoount ofmoney? Or do you simply withdraw money from your paypal to your bank account, and act like it's pure income, and not worry about filing all the expenses.
-Matthew
|
|
|
|
|
07-02-2006, 06:26 AM
|
|
Posts: 729
|
You really should report it, especially if you earn a lot of money.
I am sure PayPal are or soon will start working with the government to get all tax runners.
//Andreas
|
|
|
|
|
07-02-2006, 09:38 AM
|
|
Posts: 662
|
Monthly I turn all my financial worksheets over to my CPA for a monthly financial report which is added to my yearly reports.
This includes: bank statement, paypal history for month, payment worksheet, income deposit worksheet.
All income from my online business is documented and included in expenses and income for the purposes of taxes. Including paypal.
__________________
Its not really about the money,
Frito
|
|
|
|
|
07-02-2006, 11:51 PM
|
|
Posts: 1
|
Quote:
Originally Posted by bostondan
Everything, paypal doesnt report to the FCC. But they will see a influx of deposits to your bank account, so use a offshore credit card if you can.
|
Is it true that Paypal isn't regulated by the IRS?
Also, is this true But they will see a influx of deposits to your bank account, so use a offshore credit card if you can. ??
So, for example... what happens if I report a site that I purchased as an expense, and the guy I purchased it from didn't report it on his taxes... would there be a descrepency there?
SO, would I be ok if I just reported the deposit to my bank account as income? I am kind of new to doing business online and filing taxes regarding it. Although my income has increased exponentially in the past two months and I have become quite successful, I want to make sure that I take care of all the legalities that I need to. |
|
|
|
|
07-03-2006, 12:39 AM
|
|
Posts: n/a
|
You should be keeping a record of all income made through paypal, ypn, adsense, anything. You should also be keeping a record of your expenditures and receipts, etc. That should all be reported, and you can make a few write offs too  |
|
|
|
|
07-03-2006, 01:14 AM
|
|
Posts: 216
|
Don't think that just because PayPal doesn't report to the IRS now that you're safe. When they do start reporting, the IRS could ask for back records and they could come after you for back taxes, fines, penalties and interest. Not fun.
Quick rule of thumb: If it's income, claim it.
I personally don't go through every PayPal transaction and write the total gross in my checkbook then expense the paypal fees. That would be rediculous as much as I use PayPal.
I do, howerver, report all my PayPal deposits as income.
|
|
|
|
|
07-06-2006, 03:19 PM
|
|
Posts: 841
|
Quote:
Originally Posted by beley
Don't think that just because PayPal doesn't report to the IRS now that you're safe. When they do start reporting, the IRS could ask for back records and they could come after you for back taxes, fines, penalties and interest. Not fun.
Quick rule of thumb: If it's income, claim it.
I personally don't go through every PayPal transaction and write the total gross in my checkbook then expense the paypal fees. That would be rediculous as much as I use PayPal.
I do, howerver, report all my PayPal deposits as income.
|
Meh, that gets confusing though because if your business is incorporated or not then you'd have to say which expenses on your paypal was your business and which was personal. Plus, I have the Paypal debt card, which would complicate things even more.
__________________
Andrew Rouhafzai, owner of Please login or register to view this content. Registration is FREE
Read the Please login or register to view this content. Registration is FREE of a 17 year old entrepreneur.
|
|
|
|
|
07-06-2006, 04:55 PM
|
|
Posts: 1
|
So what do you do Andy?
|
|
|
|
|
07-06-2006, 05:33 PM
|
|
Posts: 5
|
Quote:
Originally Posted by ltn1dr
Meh, that gets confusing though because if your business is incorporated or not then you'd have to say which expenses on your paypal was your business and which was personal. Plus, I have the Paypal debt card, which would complicate things even more.
|
if you have a seperate bank account for your business which you should then you would have two paypal accounts and this would not be an issue
You don't have to have a corporation to have a business bank account |
|
|
|
|
07-06-2006, 06:24 PM
|
|
Posts: n/a
|
No, but you have to have an employee tax id for a second paypal account.
|
|
|
|
|
07-06-2006, 06:30 PM
|
|
Posts: 30
|
Quote:
Originally Posted by RyanAmos
No, but you have to have an employee tax id for a second paypal account.
|
You are allowed to have two paypal accounts  |
|
|
|
|
07-11-2006, 09:29 PM
|
|
Posts: 31
|
And anyone can apply for an EIN as well, even if you're not incorporated.
That said, incorporating is not hard and if you're making any reasonable amount of money online, you should be incorporated.
__________________
"The fundamental delusion of humanity is to suppose that I am here and you are out there."- Yasutani Roshi
|
|
|
|
|
07-16-2006, 07:07 PM
|
|
Posts: 231
|
from what i've heard they already have IRS people on board, so don't plan on doing any major income tax evasion.
|
|
|
|
|
07-23-2006, 04:08 PM
|
|
Posts: 16
|
Yes you're absolutely right.
The IRS already is clamping down on evasion. In March the IRS officially started working with PayPal... find the article on CNN.
|
|
|
|
|
07-23-2006, 05:07 PM
|
|
Posts: 10
|
I would report any income where the transaction was made via paypal. They do keep records of transactions and the govt. could force them to turn anything over whether now or in the future.
|
|
|
|
|
07-23-2006, 08:18 PM
|
|
Posts: 19
|
Yes, you should report all your income. The IRS can easily figure out how much money you made by getting paypal records.
If you're making that much money a month, you really should get an accountant to take you through all the steps (vs. giving your accountants a bunch of statements and receipts right before returns need to be filed). You could end up saving money because your accountant should be able to tell you what's deductible. Make sure you save all receipts in case you ever get audited.
Alexis
http://www.AmericanInventorSpot.com |
|
|
|
|
07-24-2006, 09:44 AM
|
|
Posts: 19
|
I just enroll in tax exempted schemes. I have a personal finance advisor from CITIBANK who gives me tips where to invest and where to not.
|
|
|
|
|
07-24-2006, 10:19 PM
|
|
Posts: 19
|
What are "tax exempted schemes"? Are you talking about tax exempt bonds? Just trying to figure out what an advisor from Citibank would advise about that is tax exempt?
Alexis
|
|
|
|
|
07-28-2006, 01:17 AM
|
|
Posts: 1
|
Quote:
Originally Posted by Alexis
Yes, you should report all your income. The IRS can easily figure out how much money you made by getting paypal records.
If you're making that much money a month, you really should get an accountant to take you through all the steps (vs. giving your accountants a bunch of statements and receipts right before returns need to be filed). You could end up saving money because your accountant should be able to tell you what's deductible. Make sure you save all receipts in case you ever get audited.
Alexis
http://www.AmericanInventorSpot.com |
Yeah. I think it's probably going to be a good idea to hire an accountant to help me, because I will have a lot of money next time taxes comes around that will need to be taken care of.
-Matthew |
|
|
|
|
08-04-2006, 09:14 PM
|
|
Posts: 231
|
Quote:
Originally Posted by nick_mayhem
I just enroll in tax exempted schemes. I have a personal finance advisor from CITIBANK who gives me tips where to invest and where to not.
|
what are some examples? |
|
|
|
|
|
« Reply to Taxes and Paypal?
|
|
|
| Thread Tools |
Search this Thread |
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
