Reciving money as gift with Paypal

[DTR]

I read a thread on cpf a while ago about not sending as gift because the buyer cannot get a refund if the item doesn't show, because its a gift and not a purchase.

That is correct. Only send gift to people that you trust.:beer:

I send as gift to most of the members I have dealt with here. Hope they don't get emails about it because of me. Flaminpryo asked me not to do it anymore a while back for the reason of taxes.

 

[Crazy Jay]

DTR just tell them they made a mistake. Don't have people put comments in the payments. Just the LPF nickname.

 

[DTR]

DTR just tell them they made a mistake. Don't have people put comments in the payments. Just the LPF nickname.

I do believe that is how they spot it. But it is not worth a few bucks to have them limit me.:beer:

 

[TeufelWolf]

Have you considered offering other payment services? Amazon, etc? Given a choice, I always prefer to use a payment method that doesn't make feebay richer... I used to be a $1000 a month ebay seller until Meg Whitman and John Donahoe started screwing over the sellers.

As for the "Gift Tax" unless you get $13,000 from one person, it is not taxable under that part of the tax code.... but technically the money you make selling personal property is taxable as 1099-misc income, but most hobbyists don't report that, but do keep in mind that local, and state and even the feds have been threatening to make paypal report transactions.

Have you considered also encouraging buyers to send you postal money orders? US, Canadian, and Japanese postal money orders are cash-able at the USPS with photo ID (unless policy has changed, no SSN/TIN is required for cashing orders under $10,000 per day).

Checks from major bank billpay services are also actually cashiers checks.

Link on paypal reporting to IRS
https://www.thepaypalblog.com/2008/08/proposed-irs-reporting-requirements-become-law/

 

[rkcstr]

Using the paypal service maybe?

Staff cost money, buildings cost money...

You get nothing for nothing in this world

By that logic, how is it banks can offer free checking accounts, even with no minimum balance or spending amount, etc? It is because you give them capital for investment. Same with Paypal. They use the credit you give them by having them hold onto your money to make investments and pay their bills. It all depends on you not giving them a bunch of money then withdrawing most of it at any given time, since most people keep a "savings". While a bank must have the ability to pay out at any given time, they are quite good at shuffling money around if need be.

The essence of what I'm saying is that Paypal has no good reason to charge people fees for transferring money from one account to another, since that is the only way you can get the free transfer anyway. Banks do it for free, why not Paypal? Paypal gets the same benefits of "holding" your money and doing what they will with it as long as they can still produce it if you ask for it. But, they're money hungry so they'll charge fees in any way they can.


Also, not entirely on topic, but as TeufelWolf mentioned, starting in the 2011 tax year, if you have greater than $20,000 in incoming payments and have had more than 200 incoming transactions, the volume of your incoming payments will be reported to the IRS. So, it will become mandatory for you to report your income otherwise likely facing audit. Also, keep in mind that even NOW the IRS can obtain your Paypal transaction records in audit if they suspect you may have unreported income... you know, if you have regular transfers to your bank account from Paypal and no good explanation for them.

 

[TeufelWolf]

@rkcstr - Bank offered "free" checking because they made profit from those ruinous overdraft charges. Now that congress banned such ruinous charges banks are cutting back on free checking.

Banks may turn away from free checking accounts

The idea that banks take deposits and then loan out the money to the community is kind wishful thinking ala "Its a Wonderful Life" that really has not been true since the 1930's. Modern banks are mostly transaction processors, factors and brokers.

When you get a loan, you are not borrowing the banks money, the bank brokers your loan to investors, whos money you are borrowing. The bank just acts as payment processor and enforcer.

Even your credit card debit is actually held by private non-bank investors.
GE Issues $850 Million of Bonds Backed by Credit-Card Payments - BusinessWeek

That is why the banks where willing to "loan" money to illegal immigrants - because they just sold the loans to some chumps who got left holding the toxic asset bag.

Since Paypal doesn't extend credit or allow overdrafts they lack the fee revenue that a bank has. They are just a factoring service like Visa and MC, they take a cut ever time money changes hands... just like how Visa and MC take a cut every time you swipe your card.

Originally when paypal first started it was FREE, but that was in early 2000, interest rates where high, and paypal could make 5% or more on short term investments. When the dot.com bubble burst and 9/11 hit interest rates plummeted and paypal could not live off the float. They had to find a savior and that was feEbay, who used paypal to ruthlessly screw its customers even more.

 

[Crazy Jay]

I do believe that is how they spot it. But it is not worth a few bucks to have them limit me.:beer:

Yeah I guess you're right.

Maybe if everyone would type "donation from (LPF name)" then they wouldn't bug you.

 

[sahara2010]

I have a Visa Gift Card in my PayPal account. I can send money with it just fine. But as far as I can tell, I can't receive money with it, is this right.








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