Hi all, I have a question about what PayPal fees are tax deductible. I know PayPal
charges a fee when you sell something on BrickLink and the buyer pays through
PayPal. That fee is tax deductible. I see there is also a partner fee which looks
to be the taxes paid by the buyer, is that also deductible?
For example:
Sale: 13.00
Postage: 5.50
State Tax: .78
====
19.28
Does PayPay report the whole 19.28 as income or just the sale and postage? At
the end of the year are the state taxes reported on the 1099K as income and if
so, one would want to deduct that correct? Trying to make heads or tails of all
this. Hope that makes sense. Thanks!
Hi all, I have a question about what PayPal fees are tax deductible. I know PayPal
charges a fee when you sell something on BrickLink and the buyer pays through
PayPal. That fee is tax deductible. I see there is also a partner fee which looks
to be the taxes paid by the buyer, is that also deductible?
For example:
Sale: 13.00
Postage: 5.50
State Tax: .78
====
19.28
Does PayPay report the whole 19.28 as income or just the sale and postage? At
the end of the year are the state taxes reported on the 1099K as income and if
so, one would want to deduct that correct? Trying to make heads or tails of all
this. Hope that makes sense. Thanks!
PayPal reports the whole thing on your 1099 so yes, you would deduct the Partner
Fee/sales tax if you're itemizing.
USA, Nebraska
