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Old 06-14-2017
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Default Paypal 1099K and MORTGAGE

Hello all, this is an interesting topic I will be meeting with my accountant and mortgage guy over this week, but I wanted to know if anyone had any experience with this.

I have a business PayPal account, This account was issued a 1099-K for 2016. The 1099-K has my REAL business name and Tax ID number on it. However, it has STEALTH address in a completely different state.

I have filed this 1099-K for 2016 and paid taxes associated with this business. However, I am now applying for a mortgage and the 1099K is one of the documents the lenders are requesting. Will the stealth address in a completely different state cause any issues with the lender? If they ask questions, can anyone assist me in coming up with a line of logic that would make sense as to why PayPal issued a 1099-K form to my business under an address in an entirely different state?

I will be talking to my accountant tomorrow, whom I have a great relationship with, but I do not know how far his knowledge goes as far as mortgage loan applications. I want to gain some more knowledge and get my story straight before meeting with the lender. ANY ADVICE?
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Old 06-14-2017
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Default Re: Paypal 1099K and MORTGAGE

Dont think anyone here will be able to help with that. Sounds like your accountant is the person to talk to about it.
Maybe just tell them you opened the business while you were residing in that state. People move all the time. Shouldn't be a big deal. But again - Im no expert.
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Default Re: Paypal 1099K and MORTGAGE

Actually I had this same issue several times.

For tax purposes of course it doesn't matter since the 1099k is tied to your EIN but for the bank it's another issue but remember the bank wants to see verifiable income and you need to prove that the income your presenting is actually yours. Thats what they care about. I don't think they care if your income comes from mars as long as you can verify it's your income.

What I did was tell them the truth.

I run a compleatly online business but due to the nature of eBay they won't let me have multiple accounts so I set up a second (or third) ebay and paypal account to get around this.

Make sure to point out that obviously I used my real information on Paypal for tax reporting reasons and here are my taxes reporting my income.

Thats it and I had no issues.

2 things - I do have over 700 credit and I do have a real business set up that matches my paypal business name. I don't know if those things differ from your situation or if they helped mine.

Just thought that might help
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Default Re: Paypal 1099K and MORTGAGE

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Originally Posted by tom191 View Post
Actually I had this same issue several times.

For tax purposes of course it doesn't matter since the 1099k is tied to your EIN but for the bank it's another issue but remember the bank wants to see verifiable income and you need to prove that the income your presenting is actually yours. Thats what they care about. I don't think they care if your income comes from mars as long as you can verify it's your income.

What I did was tell them the truth.

I run a compleatly online business but due to the nature of eBay they won't let me have multiple accounts so I set up a second (or third) ebay and paypal account to get around this.

Make sure to point out that obviously I used my real information on Paypal for tax reporting reasons and here are my taxes reporting my income.

Thats it and I had no issues.

2 things - I do have over 700 credit and I do have a real business set up that matches my paypal business name. I don't know if those things differ from your situation or if they helped mine.

Just thought that might help
I do have an excellent credit score.

My business is real and incorporated in the state I reside, but I use it for stealth purposes only. It has no other function in reality.

Last edited by nodeal; 06-14-2017 at 07:34 PM.
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Default Re: Paypal 1099K and MORTGAGE

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Originally Posted by slokor View Post
Dont think anyone here will be able to help with that. Sounds like your accountant is the person to talk to about it.
Maybe just tell them you opened the business while you were residing in that state. People move all the time. Shouldn't be a big deal. But again - Im no expert.
I already went through part of the interview process and one of the questions was how long I have resided at my current residence. Unfortunately I cannot backtrack on this answer, and even if I did, I am sure they would like some sort of documentation showing my residence in this other state.
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Old 06-15-2017
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Default Re: Paypal 1099K and MORTGAGE

Yeah, just tell them an abbreviated version of the truth.

Remember, don't give them too much info, just the bare minimum.

As long as it's declared and filed on your taxes you'll be fine.

NOBODY lies and declares MORE income than they actually made when they file their taxes.
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Default Re: Paypal 1099K and MORTGAGE

I talked to my accountant about this, and he discussed it with his mortgage specialist guy that works at the office. The mortgage guy said he doesn't see it being a problem, but if they do ask, a simple explanation along the lines of having a customer in that state should be good enough for them.
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