Forum

Paypal vs Taxes
 

hi, i was using a friends info for a paypal account. the paypal account got limited and i asked my friend to give his info so he can unlimit the account. the account is now unlimited however my friend is worried since he had to give his SSN to paypal. he now doesnt want me to use the account because hes scared he has to pay taxes on the money when transfered from his paypal to his bank. i told him in the begining that i have about $8,000 in merchandise that i need to get rid of. i told him that 8,000 is nothing , but he insists that i find out more info on this. can anyone help me? what can i tell him that will provide him assurance?

You want INFO to re-assure your friend? Wow - that's business model question

That being said, I would side with your friend - go fresh and get your own stealths going - you are somewhat "lucky" that you could use his account in the first place - i would not like pa yp al asking for my own identity because of sales of another person.

Sorry if I sound arrogant but regardless I wish you all the best. Maybe other folx will chime in but as a junior member, well I have said enough...

Within the US, paypal will report your friend when you get 200 transaction or $20,000 which ever comes first. That law started in Jan, 1 2011.

its going to be less than $10,000 in sales so i we have no worries then correct?

No. incorrect. Take responsibility for making a silly move and doing business with a friend.
That $8000 of sales needs to be accounted for. Find an accountant and work out what to do.

Money earned is taxable. One or other of you will need to pay.
Forum is not tax agents so get expert's advice.