Re: Paypal tax’s
There used to be a lot more info about this on the forum when there were more serious sellers here. Those days are gone.
This is how it's done:
- buy account
- sell on account
- apply for EIN from IRS.gov
- put EIN into Paypal, upgrading it to business account
- 1099K is created with your EIN as the tax ID
- take 1099k to your accountant, or use it yourself, or however you do your taxes
- use the 1099k to report your business income on the Schedule C part of your personal tax return
- deduct business expenses to come up with your net profit
- pay taxes on net profit.
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