Somewhere I read that you can send only about 20,000$/year or 200 transactions.
The question is, what is the maximum allowed money you can send as a Business account to a simple Verified user account per year/month as a 'Gift' (Friends-Family option)? Also, what is the maximum amount a simple Verified user can receive as a 'Gift' (Friends-Family). Thank you.
Not send, but receive before PayPal sends out 1099-K forms to report your gross payment volume from sales to the IRS. As long as your account and the recipient account is verified there is no limit how much you can send as personal payment as long as you are using your business account for primarily business transactions.
Personal payments are not counted towards the 20k/200 transactions requirement.
Thank you for your kind reply. So, you're saying that there is no maximum amount to be sent/receive as long as both accounts are verified. Also, if the payments from the 'Business' account are sent as 'Gift' to the another 'simple Verified user account' they don't count on tax, correct? Thank you.
PS: Regarding the 20,000$/year received, the same happens to personal accounts or only Business?
Yep, no max, as long as both accounts are verified as limits are lifted on verified accounts. You can only send 10K per transaction though. Only gross payments from goods and services count towards the yearly 1099-K and they apply to both personal and business accounts. Do not use personal payments to transact for goods and services. That is fee avoidance. Personal payment privileges can be revoked as a result.
No need to. If sending payments from PayPal site or app, you're always given the choice to indicate if a payment is friends & family or goods & Services. Just select Friends & Family when sending personal payment.
