posted on October 15, 2000 02:00:08 AM new
In Re: Pay Pal transactions fees etc. I was not pleased to see Pay Pal start charging me for their free service. I run alot of auctions on Ebay and 80% are consignments and I pay fees out of my percentage so 1.9% is a big hit. Then I had a talk with an accountant.
Unless this accountant is insane, an this is always a possibility with accountants, the fees Pay Pal charges are a cost of doing business and Tax Deductible.
Are there any sane accountants out there who can confirm this?
posted on October 15, 2000 05:04:47 AM new
I'm not an accountant...though I do play one on TV.
If there is a way to legally and properly document the fees, and if you are a legal business, I would assume that they are tax-deductible after some fashion.
posted on October 15, 2000 07:46:47 AM new
Last year I claimed my 1-click fees and my ccnow fees, and my bank fees. I don't see why paypal would be any different for this year?
posted on October 15, 2000 01:11:50 PM new
Absolutely ... any fee you pay to someone else in the course of doing business is a deduction as an expense.
Just keep track of what is deducted by PayPal for each transaction.
posted on October 15, 2000 05:39:14 PM new
I plan to claim my ebay fees, so why not PayPal? I have been meaning to ask those of you who already have business accounts: does PayPal provide an accounting of its charges to you? Or do you have to go in and calculate all those nickels and dimes yourself?
posted on October 15, 2000 07:14:49 PM new
There's no doubt whatsoever that credit card fees incurred in the process of selling an item are a legitimate deductible business expense...if one is claiming the income from the sale as business income, of course! Along with the postage paid to ship, there are few other expenses that are so very cut-and-dried.
I suggest that any business keep track of all their own expenses, in addition to keeping any records that Paypal et al might furnish. The more paper, the better, in the event of an audit. Besides, if you don't keep records, how do you know Paypal's/your bank's/etc. records are correct?
