I was under the impression that paypal divulges your income to the CRA / IRS. But what if you withdraw to your corporations bank account instead of your personal one, are you still taxed the same way as if you were withdrawing straight into your checking account? I guess what i'm asking is if you're taxed when you receive the money into your paypal account, or when you actually withdraw it to a bank account...
Depends on how you setup your PayPal account, personal or business. If you move it (cash) into an S-Corp you are not double-taxed otherwise in a C-Corp you will be taxed twice. Regardless of what anybody sends you just report all income. Otherwise the IRS will ambush you years later. JQ NOT LEGAL ADVISE ABOVE...seel proper legal help
How you are taxed on it depends on how you are filing your taxes. Paypal nor the Bank pull out any taxes. You need to know how you plan to file at the end of the year and pay your taxes accordingly. Also remember you are not taxed on how much money comes in but on the actual profit.
im reading around the net that the thresholds they stated, they are not following WHATSOEVER. class action coming soon?
Class action for what? Reporting income to the Govt that people were supposed to be reporting anyway? I can see the line of questioning now. Why are you upset that Paypal reported your income? Well I was planning on not reporting it and cheating on my taxes.... Yeah that will go far.....
While there are a lot of reasons to dislike Paypal this is really not one of them. This thing is probably costing them a lot of money to deal with and is not something they want to do. The IRS is putting the screws to them because they know damn well that a very large number of people are making money and not claiming it on their taxes. The Govt want their piece of the pie so they are trying to close up the ways people hide income.
