OT: IRS Paypal Tax Situation

[D. Bergin]

I never understood why 1099's go through Paypal and not Ebay. Paypal is essentially a glorified checking account. A place for money to come in and go out of. Not a source of "income".

As it is, I just report my Paypal 1099, claim all my deductions and expenses and pay my taxes accordingly.

[Exhibitman]

Paypal is treated like a bank, Dave. They collect and disburse funds, so they are deemed to be knowledgeable about where the money goes. eBay doesn't have that same role now that it spun off PayPal. When PayPal was a subsidiary of eBay, of course, it was in effect eBay that was issuing the 1099.

[CMIZ5290]

I'm an idiot pertaining these discussions. Is their any benefit taking a check versus Paypal friends?

[MikeGarcia]

Originally Posted by CMIZ5290

I'm an idiot pertaining these discussions. Is their any benefit taking a check versus Paypal friends?

..a check or money order won't rat you out to the federales.....

..

[ullmandds]

Originally Posted by MikeGarcia

..a check or money order won't rat you out to the federales.....

..

i was under the impression large checks(10000 or more I believe) does trigger a sequence of events at the bank...which could involve the federales?

[Thromdog]

Originally Posted by CMIZ5290

I'm an idiot pertaining these discussions. Is their any benefit taking a check versus Paypal friends?

Legally no. Regardless of payment type you are technically supposed to report it. Plus a bank could realistically notify if you have cashed or deposited a series of checks that reach a threshold.

Trades on the other hand.....

Scott, I'm in the same boat recently. Fortunately I document everything via a spreadsheet on Google drive so I have a good reference point on expenses that offset the sale for every card I own or have owned including any profit/loss. That and I keep all the invoice emails from AHs.