tax issue please help?

Question

i have a e-bay account and paypal account and i sell items on e-bay but the bank account that gets transfered from paypal is not in my name. i need to know if this will effect my taxs at the end of the year. im lettting some one use my accounts to sell items every thing is in my name but the bank that the money gets transfered to?

In the past 31 days the e-bay account shows ive made over 8,000.00 but this is not going to me and is not the actual amount made

Answer 1

If you are doing it as a business and make more than $600 per year then you will need to either include the income on a schedule C if operating as a sole proprietor. If you are in a partnership, LLC, LLP or S corp then those entities will have to declare the income and thus flow through to you.

It doesn't matter whose name is on the bank account it matters who is earning the income. If you are not earning the income then you don't need to pay taxes on the money.

Though I personally wouldn't let someone else use my accounts as it could cause you problems if you were to be audited and you would have to prove you did not receive the income.

Answer 2

Unless you're a holding company or have some other tax exempt status. As far as the feds are concerned, If money changes hands and your name is on it, then it's income and therefore taxable.

Answer 3

If it's your account, it gets counted towards your income so you'll be responsible on taxes for the interest that it may make as well as any income taxes that are required.

Answer 4

As long as the paypal account doesn't get interest, you're fine.

Answer 5

I understand your concern but trust me,the I.R.S. have bigger fish to fry.Just don't claim it,unless that is your main source of income.Just think of it this way,the government owes you one.