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Old 03-08-2014
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Default Question regarding 1099, income and having multiple accounts.

I currently have only one paypal account that I use primarily for two types of transactions. I sell shoes and logo'd entry mats. When I sell the mats, I typically get paid via paypal gift to avoid fees. My first question is does this go towards my transaction/revenue limits? I am of the understanding that it does not. I just want to confirm that.

Secondly, I'm looking at moving enough shoes via paypal invoice and other avenues tied to paypal that I may come close to $20,000 this year. If I open a second business account, can I use both accts to run sales and keep both under the 20,000 limit and not get a 1099?
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Old 03-10-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Sending lots of gifts will get your account flagged at some point.
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Old 03-10-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Yeah I agree. PayPal likes to take their cut so sending as gift payments( or receiving) limits their intake. As far as it going to limits- I don't know if it will count monetary wise but it will count as an actual transaction which they also keep an eye out for
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Old 03-10-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Would it be best for me to keep these two "biz's" together taking money on on this account so that it will show they're at least getting a % on a chunk of it?

In terms of numbers, I might get 10 gifts payments sent over in a given month vs 4-6 paypal invoices paid on the shoe biz.
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Old 03-10-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Another question, would utilizing an Amazon payments account make sense as well to spread out the income that's generated?
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Old 03-10-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

So is there no consensus on if having a biz paypal and personal paypal acct get combined to hit the 20,000 limit? Or are they kept separate?
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Old 03-10-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Quote:
Originally Posted by wheelman76 View Post
So is there no consensus on if having a biz paypal and personal paypal acct get combined to hit the 20,000 limit? Or are they kept separate?
You can have as many paypal accounts as you desire PER Identity(two-three without permission from paypal) but all will be combined for total for the 1099 so it makes no difference at all as far as risk or 1099 view.
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Old 03-11-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

So basically if you hit the max, start using your wife's account, would that make sense? Paypal is figuring this on separate individuals, not couples correct?
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Old 03-16-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

I agree, It was my understanding that regardless of # of accounts, the limit is 200 items AND $20,000 in sales. My account this past year was over $20,000, but only 140 items, I saw no 1099K. The consensus on the PP forum is the same, doesn't matter how many accounts, they will roll the totals together of all related accounts.

I would imagine that "gift" or friend & family payments would be included in the total $20,000. Their site and TOU simply say 200 transactions, totally $20,000 or more. Does not differentiate between gifts or actual business, just total items and revenue.

You could start using your wife's account, but I do not know how easily/likely PP would lookup her SSN. I mean, the IRS knows you two are married, right? I'm sure PP can put it together if it's same address//last name.
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Old 05-17-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Revisiting this again. How would paypal put two and two together if they don't have your SSN? I have two accts, both verified and didn't have to provide my SSN. I would think someone with different addresses and somewhat different name spellings would circumvent the limit via combining accts because they wouldn't be able to if you have different addresses, etc. Am I missing something?
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Old 05-17-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Quote:
Originally Posted by wheelman76 View Post
Revisiting this again. How would paypal put two and two together if they don't have your SSN? I have two accts, both verified and didn't have to provide my SSN. I would think someone with different addresses and somewhat different name spellings would circumvent the limit via combining accts because they wouldn't be able to if you have different addresses, etc. Am I missing something?
You sure are.
there would be no 1099 without an SS number and you would not be able to sell more than 200 items and 20K and odds are a heck of a lot less than that because your account will get limited and an SS or EIN will be required.
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Old 05-17-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Quote:
Originally Posted by wheelman76 View Post
So basically if you hit the max, start using your wife's account, would that make sense? Paypal is figuring this on separate individuals, not couples correct?
You need to take professional tax advice.

Forum is NOT here for you to circumvent your tax obligations.

Stop asking us to do this.

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Old 05-18-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Quote:
Originally Posted by Salvo View Post

I would imagine that "gift" or friend & family payments would be included in the total $20,000. Their site and TOU simply say 200 transactions, totally $20,000 or more. Does not differentiate between gifts or actual business, just total items and revenue.
This is inaccurate. ONLY CREDIT CARD processing is reported. Echecks, gifts, bank transfers, smart connect, bill me later, etc... are not reported.
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Old 05-18-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

Get more stealth accounts going and spread money coming in - and go seek professional advice.
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Old 05-22-2014
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Default Re: Question regarding 1099, income and having multiple accounts.

As far as linking you and your wifes account....are you using the same computer with the same IP address for both accounts....if so....you're already linked.
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