What would you do?

Rather do it the proper way and show expenses against the income to offset it. That is the best way. Reinvest in merchandise and equipment. As long as your not showing a loss every year you shouldnt get audited. Show a small profit and pay taxes on it, dont get greedy.

Everyone is allowed $10k a year in online payments before it shows as taxable income. Everything must be kept 100% separate. Each person must have there own email address and own paypal account. Make sure to keep it under 10k per paypal account per year. As soon as it goes over 10k you pay taxes on the whole thing.

Originally Posted by jghilino

Rather do it the proper way and show expenses against the income to offset it. That is the best way. Reinvest in merchandise and equipment. As long as your not showing a loss every year you shouldnt get audited. Show a small profit and pay taxes on it, dont get greedy.

Everyone is allowed $10k a year in online payments before it shows as taxable income. Everything must be kept 100% separate. Each person must have there own email address and own paypal account. Make sure to keep it under 10k per paypal account per year. As soon as it goes over 10k you pay taxes on the whole thing.

Its 20k unless they changed it for 2013.

Originally Posted by PartTimeScrapper

Its 20k unless they changed it for 2013.

ok so 20k per person so a family of 4 can take in 80k in online payments with no statements generated, sounds good to me