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Any paypal gurus here ? Lets talk taxes guys.

Bertrand

Bertrand

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Ok, since there are people reporting large monthly incomes of 1k+ monthly, i think it is reasonable that we should discuss taxes. From what i've read so far, paypal in the U.S. is under some 1099 agreement that is forcing them as a company to report each and every U.S. citizen that has over 200 transactions in a year or has exceeded the amount of 20k $ in income. Now, i haven't heard anything of that sort regarding European countries so i think it would be a good idea to get some answers from people that have earned well over 1.5~2k a month. Does paypal has any reason to report you to your local government if you are making large sums of money on monthly bases. Has anyone ever been contacted by an irs agent regarding their online income ? I for one haven't even thought of the idea of explaining the old ladies in the irs department in my state of what blizzard's auction house is, let alone perfect roll on cold dmg stone of jordan (imagine explaining, this 211 euro paypal transaction is from 2 socket 1300 dps manticore) to a 55y old mustache lady :D

So if anyone has had any experience regarding money from botting and taxes or heard of anything of that sort, please share it here. Does this income accounts as hobby money ? Should we report it, or just play the "dumb flute" ?
 
tax only affect US citizens last I heard no other country cares about your paypal income
 
the tax man can get his grubby little hands off of my RMAH sales
 
I guess if you don't report your income ( you will exceed 200 transactions in 2 months if botting right ) paypal will do it for you. After that will follow a knock knock on the door from the tuxido guy :D
 
Bertrand said:
I guess if you don't report your income ( you will exceed 200 transactions in 2 months if botting right ) paypal will do it for you. After that will follow a knock knock on the door from the tuxido guy :D
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why would they be wearing a tuxido....
 
first of all read it properly. it is not 200 transactions or 20k. it is 200 transactions AND 20k

secondly you're responsible for reporting profits in any scenario

third solve your own tax problems and leave it out of a botting forum
 
Valen said:
first of all read it properly. it is not 200 transactions or 20k. it is 200 transactions AND 20k

secondly you're responsible for reporting profits in any scenario

third solve your own tax problems and leave it out of a botting forum
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i dont have this problem, but i think it is actually directly relevant to what most people do here. I am interested to hear about it if anyone knows solutions or answers to it, and i am sure many others are also
 
First off, to determine if its a hobby or business/trade in the real world.

IF it is a hobby, just remember that you can't take excessive loss , meaning that if you make 40,000 and have 45,000 in loss's you are subject to only $40,000 max, and it will be subject to the agi 2% floor.

Second, if you determine that it is a trade or business, it will be put on schedual C of your 1040. Schedule C will have a list of all deductions. In order to determine that you are a trade or business, by definintion and court law, you need to have a profit motive and/or FUCK i forgot.

Anyways. I have full access to Checkpoint, FASB, and Direct data bases for any tax related questions.

I have almost completed my CPA and just finishing my masters of accountancy.

If anyone wants to talk more about this add me on skype. XwildcatzX
 
Valen said:
first of all read it properly. it is not 200 transactions or 20k. it is 200 transactions AND 20k

secondly you're responsible for reporting profits in any scenario

third solve your own tax problems and leave it out of a botting forum
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Since when does ignoring problem = solving it ?
The point here is to have someone answer this thread with monthly income of 2-3k from paypal only. That way we can know if paypal is informing our governments regarding paypal transactions. It is logical to assume that paypal accounts with monthly traffic of 2-3k and above euros might draw attention to paypal and result in a report to the appropriate country irs. As far as i managed to gather google information regarding this topic i can say i haven't read single reply where someone was contacted by irs as a direct result from paypal reporting that person for high monthly income. Still, this might be serious issue for some...
 
I made a new Paypal with my sister's bank account once I hit about $16k.
 
Bertrand said:
Since when does ignoring problem = solving it ?
The point here is to have someone answer this thread with monthly income of 2-3k from paypal only. That way we can know if paypal is informing our governments regarding paypal transactions. It is logical to assume that paypal accounts with monthly traffic of 2-3k and above euros might draw attention to paypal and result in a report to the appropriate country irs. As far as i managed to gather google information regarding this topic i can say i haven't read single reply where someone was contacted by irs as a direct result from paypal reporting that person for high monthly income. Still, this might be serious issue for some...
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as far as i know from my ebay experience, once you git 200 & $20k, paypal will lock your account and force you to give them ssn. if you cant provide you cant take money out of your paypal

and if your ssn and annual income are reported to irs, of course you can ignore it. but i'm pretty sure it will stays in your record and eventually you will have to deal with them.
 
Seems to be a though country to live in.. Greetings from Sweden (where we also pay taxes, ofcourse, but not online transactions nor clothes, shoes etc etc)
 
lynar said:
Seems to be a though country to live in.. Greetings from Sweden (where we also pay taxes, ofcourse, but not online transactions nor clothes, shoes etc etc)
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Finns ju lite andra s?tt att "slippa" skatta p? pengarna h?r i sverige ist?llet, med skattefria kasinon.

*Tjo, ?terbetalning ifr?n bet365*
 
botzor said:
Finns ju lite andra s?tt att "slippa" skatta p? pengarna h?r i sverige ist?llet, med skattefria kasinon.

*Tjo, ?terbetalning ifr?n bet365*
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What good would that do? If you have large incomes it is, if Skatteverket asks you, up to you to prove that they should be tax free. They don't have to prove anything. Just because you are going Paypal -> Bet365 -> Bank account it doesent mean you are safe.
 
qwerq said:
What good would that do? If you have large incomes it is, if Skatteverket asks you, up to you to prove that they should be tax free. They don't have to prove anything. Just because you are going Paypal -> Bet365 -> Bank account it doesent mean you are safe.
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Har sj?lv vunnit st?rre pengar p? online kasino, 25-30k all vinst betalas ut skattefritt. (inom EU)
St?r bara "?terk?p" p? uttaget, s? tvivlar p? att skatteverket kollar upp det.
Jag har inte haft n?gra problem ?n s? l?nge.
 
botzor said:
Har sj?lv vunnit st?rre pengar p? online kasino, 25-30k all vinst betalas ut skattefritt. (inom EU)
St?r bara "?terk?p" p? uttaget, s? tvivlar p? att skatteverket kollar upp det.
Jag har inte haft n?gra problem ?n s? l?nge.
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Det ?r inga stora pengar och ingenting som banker beh?ver rapportera till Skatteverket. Det blir problem vid uttag >50k i st?ten eller n?r det blir uppenbart att du f?rs?rjer dig p? uttag via Paypal eller liknande. Du skyddas inte ?verhuvudtaget bara f?r att du tar ut pengar fr?n Bet365, om skatteverket undrar hur du klarar dig utan att betala skatt s? ska du bevisa att du g?r det p? ett s?tt som inte skall skattas p?. Du tar bara en on?dig risk/betalar on?diga avgifter n?r du flyttar pengarna via Bet365.

lynar said:
Seems to be a though country to live in.. Greetings from Sweden (where we also pay taxes, ofcourse, but not online transactions nor clothes, shoes etc etc)
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What do you mean by "but not online transactions nor clothes, shoes etc"?
 
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