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  #1  
Old 10-02-2014
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Default Question in limits and taxes

So I put my mother through the public records and received an increase of 100 items and I provided her DOB and not her SS#.* She is receiving her monthly social security income and although she wanted to help out she wants to do it safely.* Is it safe to tell her that nothing will happen to her as long as I donít sell over 200 limits or over 20,000?

*
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  #2  
Old 10-02-2014
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Default Re: Question in limits and taxes

If you have used her details she will be liable for taxes
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Old 10-02-2014
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Default Re: Question in limits and taxes

You have to pay taxes on all your earnings, not just if/when you go over the 200/20k threshold. As JamesNorth101 said, since you're using an account with her details, that means she would be the one who owes taxes for that account. Please be careful with this.
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Old 10-02-2014
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Default Re: Question in limits and taxes

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Originally Posted by JamesNorth101 View Post
If you have used her details she will be liable for taxes
I know discussing these things tax related is a slightly grey area but what you say isnt always true. I have had discussions with my accountant and the inland revenue directly (UKs IRS basically) and they without question both stated:

"All we care about is the numbers and that the person who is earning and receiving the money (which can be shown by audit trail to YOUR bank account) is paying the taxes. The names are almost irrelevant and can be 'trading names' so to speak."

That said, always do your own research and make enquiries like I have done
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Old 10-02-2014
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Default Re: Question in limits and taxes

NOT at all safe OP - you need to ask these questions to a financial professsional - advice like that is beyond this forum's goals.
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Old 10-02-2014
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Default Re: Question in limits and taxes

So I think I am missing something that I don’t understand.* Putting it through the public records she has to pay taxes even though I did not provide her SS#.* If I buy a stealth account with John Doe’s name, who pays taxes?*
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Old 10-02-2014
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Default Re: Question in limits and taxes

If you're confused about taxes, then I would definitely seek an expert because that's one of the things you never want to get wrong.

Remember, with a stealth account you're using an alias, a DBA or whatever you want to call it. Your legal name may not be John Doe, but that is your assumed name for an account and you're the one transferring money to your bank, which is why you owe taxes for your earnings.

In the situation with your mother, you may not have used her SSN, but you used her info correct? There are many ways the government can track someone besides their SSN. The SSN is just an easy way.

The difference between using a random false name vs your mother's name and info is that with a false name you're not impersonating anyone, because well, it's false. Sure, someone somewhere with the same name probably exists, but you're not pretending to be *the* John Doe, only *a* John Doe, your DBA. But with this account, you're pretending to be *the* person (your mother), which is why she would owe taxes.

I could be wrong, but that's why it's better to ask someone who deals with nothing but taxes to make sure you, and more importantly - your mother - doesn't end up in trouble.
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Old 10-02-2014
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Default Re: Question in limits and taxes

Plumsake. You make a lot of sense. Thanks. Now. I am going to let my mother's account go, meaning I will not use it again. I already attached a bank to it so can I use that bank account to another stealth?
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Old 10-02-2014
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Default Re: Question in limits and taxes

Quote:
Originally Posted by Kiroshi View Post
I know discussing these things tax related is a slightly grey area but what you say isnt always true. I have had discussions with my accountant and the inland revenue directly (UKs IRS basically) and they without question both stated:

"All we care about is the numbers and that the person who is earning and receiving the money (which can be shown by audit trail to YOUR bank account) is paying the taxes. The names are almost irrelevant and can be 'trading names' so to speak."

That said, always do your own research and make enquiries like I have done
US tax law is very different to UK tax laws.

The IRS is a very different beast to HMRC

Quote:
Originally Posted by SadSuspended View Post
So I think I am missing something that I donít understand.* Putting it through the public records she has to pay taxes even though I did not provide her SS#.* If I buy a stealth account with John Doeís name, who pays taxes?*
It will be going into your bank account so you will need to pay taxes.

Need to talk to an accountant for the details
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Old 10-02-2014
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Default Re: Question in limits and taxes

This is a bit of a run around thread.

It comes down to this single question.
Is the money coming into YOUR account? or HER account?

Next thing is, you can change the details of the account and you can EIN the paypal when needed, the same as any other account.
What you absolutely don't want to do is withdraw money into her accounts at all if she is not receiving this income.
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Old 10-02-2014
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Default Re: Question in limits and taxes

Quote:
Originally Posted by SadSuspended View Post
Plumsake. You make a lot of sense. Thanks. Now. I am going to let my mother's account go, meaning I will not use it again. I already attached a bank to it so can I use that bank account to another stealth?
This is why we told you when you first joined to NOT to use your mother's info to avoid the hassles.

Now you wasted a bank account as it should not be used on another paypal


Last edited by GreenBean; 10-02-2014 at 06:28 PM.
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Default Re: Question in limits and taxes

Hi,
The money will be going to my account so I will be the one earning the money. I know is hard to stay away from your mother's info but she is willing to help. I don't want her getting in trouble. In my mind, if I was not going over the 200/20,000 she was going to be safe. Anything that goes to my checking will be reported because I received it.
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Old 10-02-2014
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Default Re: Question in limits and taxes

Quote:
Originally Posted by SadSuspended View Post
Hi,
The money will be going to my account so I will be the one earning the money. I know is hard to stay away from your mother's info but she is willing to help. I don't want her getting in trouble. In my mind, if I was not going over the 200/20,000 she was going to be safe. Anything that goes to my checking will be reported because I received it.
So if the tax info request comes up and the request a ss or EIN, Create a business and supply the EIN. The ebay side is irrelevant.
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