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how to file tax return on paypal income?
 

Hi, I noticed that paypal has the 2009 financial summary reports available and it tells you how much you've earned, spent, etc. Do I use this to file my taxes? How am I going to do this for multiple accounts? The top of the summary shoes the name and address of the account holder. Do I just add all the values together into a single statement?
Thanks a bunch!

Sending Paypal as GIFT
 

I did some work for a client.

I requested him to send $2000 Paypal as GIFT.
He is not going to treat this as expense.

Do I still need to pay income tax on this $2000

That's what I would do. Along with your other expenses. It's much easier if you have someone do this for you monthly.

Yes, you are required to pay taxes on all income you've received. Whether or not he sends you a 1099 is none of your concern.

does govt know about the bank transfers from pp?

You can say the money was gave to you or that it was a gift. Yes the govt can find this out if they want to. They sure wont look at every ones bank account transfers to see if ever one filled out there tax right or wrong. If this was the case then they just should fill the taxes out for every one. Unless you a big timer and had over 8g's in your bank at one time then.... hehe I won't worry about it. All that will happen is they would tell you to pay it. ( a BIG "IF" they found out. )

Hi, do you mean having 8k pp withdrawal one time or bank account totaling 8k?

bank account totaling 8k at one time. Not to long ago I heard that the feds only look into your bank when you have more then 8k in your bank. I'm not 100% sure this is right but it is something to look in to.

What if you're in stealth mode and have sold some counterfiet items..that doesnt seem like it would be too smart

humm i seem to remember an episode of the sopranos that said it was 10k. :noidea:

I sold some things last year in 2009, but PP limited me and held the income for 180 days which will be released in May 2010. How should I report this income and the cost of goods sold from the last year?

Guys.... honestly.... I hate the conversation that is without intelligence.

PAY YOUR TAXES

Didn't you guys pay attention in history during 3rd period? The worst criminal masterminds in the history of this country, were all taken down because of income tax evasion. Not murder, or money laundering, but income tax evasion. It's not worth it for 200, or 200000 dollars. If you don't know the answers to your questions, PAY YOUR TAXES

even if youve sold counterfeits?

Anyone that earns money has an obligation to pay taxes. Find an accountant for the correct way to do this. Forum is most certainly not going to give advice .
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