Actually YES the irs is counting the loans as income! I just had to amend my 2016 tax return because paypal added my **bleep** loan to my 1099. Now my tax preparer is amending my 2017. I'm royally pissed! I have to pay back my refunds for those two years plus some. Also my 4k return was taken this year to pay for this! Not fair! My tax prep HR block has done extensive research on this and paypal won't admit it, but yes they do add the loan to your income. They need to be sued if you ask me! I'm screwed now because I'm trying to buy a home. If you get a cash advance from PayPal aka working capital it's added in as income. Because it's supposed to be used to purchase stuff for your business. Business expenses etc.
