Paypal transactions

[john007]

Is receiving money from friends and relatives count to your 200 transaction / year tax reporting limit?

[ooooo.halo]

Originally Posted by john007

Is receiving money from friends and relatives count to your 200 transaction / year tax reporting limit?

I would have thought so but cant be sure.
Be careful receiving regular payments on an account.from friends and family.
In theory you can do this and it shouldnt be a problem....but it can initiate a review of account.
I had an old real paypal and sent money every tuesday without fail to a friend.
My account got limited as did friends. We could both provide everything required so turned out ok.
Just thought id mention that. Stick around for a.direct answer.for.question as i could be wrong

[ishhstar]

In my case I had received almost 2k in 5 days on my real account. Paypal limited and called asking about the transactions. Wasn't to worried, but transactions like this will flag their system.

[john007]

what's the suggested amount for not to get flagged?

[pokerpro]

It doesn't count as a sale, unless it is a sale and you say it's a sale......but it does count towards your 20K a year figure.......I asked a paypal phone rep that very question 6 months ago, and that's what they told me.

[john007]

so it is taxable if you have received over 20k?

[ooooo.halo]

Originally Posted by john007

what's the suggested amount for not to get flagged?

I cant answer that as dont have experience.
But in my case, it was more about the regularity, not the amounts. Think it was about £25 I sent each week so a very small amount but it was regular which is the reason they looked into it, i think.
Is this going to be a regular transaction and what types of amounts were you thinking?

[john007]

Yea I was thinking making it regular in the amounts of $200 per month

[pokerpro]

Well, any amount of income is taxable........but paypal reports the money that goes thru your paypal account once it reaches the 20K mark......you better read up on it.

[john007]

I like how Paypal used to say there's anonymity in using paypal, now they track everything for the IRS

[ooooo.halo]

Originally Posted by john007

Yea I was thinking making it regular in the amounts of $200 per month

Sounds like a reasonable figure to me.
The same amount each month from.same person.or persons may be looked at.
Im only going.from experience.
Mine was same amount, same person, every tuesday morning without fail lol
That was some time ago though
They are looking for links and the link will be made if you do this.
Im no expert so i wouldnt take what im saying as gospel but i just learnt quickly how an innocent set of transactions were reviewed for both parties