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Ok, so everyone probably has gotten the lovely email about the PayPal 1099K coming out over the next couple of days. I did some research on this, and it's not fun.
Basically, if you use for PP for both business and personal (like many do, including me), its time to change that.
PP is now reporting all accounts that have "sales" (basically, any income) over $20,000 -and- have over 200 payments received.
So, I just found out that because I sold off some of my anime collection, it bumped me JUST over the limit on both. Due to the nature of the reporting that Paypal will be doing, the IRS has no way to realize that, in fact, my business income is lower than the threshold.
PP's response to this horrific mess is "consult a tax professional, we cannot help you." and "we recommend you create a secondary account for personal transactions, to keep them separate." Blagh.
tldr; If you use your paypal for business + personal, make a secondary account NAO.
Basically, if you use for PP for both business and personal (like many do, including me), its time to change that.
PP is now reporting all accounts that have "sales" (basically, any income) over $20,000 -and- have over 200 payments received.
So, I just found out that because I sold off some of my anime collection, it bumped me JUST over the limit on both. Due to the nature of the reporting that Paypal will be doing, the IRS has no way to realize that, in fact, my business income is lower than the threshold.
PP's response to this horrific mess is "consult a tax professional, we cannot help you." and "we recommend you create a secondary account for personal transactions, to keep them separate." Blagh.
tldr; If you use your paypal for business + personal, make a secondary account NAO.
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