Paypal and Venmo

Forum|Forum|4 years ago
April 6, 2022
3 replies
27 views

I am asking for my husband that does many transactions through PayPal and Venmo. What exactly needs to be claimed and/or filed? I understand the change if it is put in as a sale. It is not a purchase and is friends and family. That does not need to be disclosed, correct?

MaryK4

Level 15

If you sold personal items but did not make money, you do not have to report. You would also not have to report any repayments made by others. Unfortunately, just because you do not have to report on the tax return, the IRS may ask for the records, so at the very least keep copies of the statements for at least three years.

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jv32Author

Level 2

How would it be proven whether there was money to be made or not? Such as if a personal item was sold but it was through friends and family?

MaryK4

Level 15

Realistically. the IRS will place a threshold amount that is more realistic but in general, many people won't even be targeted for this but something else on the return. It is up to the taxpayer to prove income or deductions. As a tax professional, I would say anytime a transaction occurs keep a diary of who why and when the transaction occurred.. @jv32

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