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I am wondering how Paypal reports our capital loans. Are they added to the 1099 as income? EX, if my sales for the year were $18,000 and I had a $3,000 capital loan, does the loan push sales income to $21,000? Thereby exceeding the $20,000 threshold before it gets reported.
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PayPal Business Loan
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1099K is gross amount you received via goods and services on Paypal.
Did you receive the loan money as a goods and services payment from PayPal? If not, then it doesn't go towards the thresholds.
Kudos & Solved are greatly appreciated. 🙂
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1099K is gross amount you received via goods and services on Paypal.
Did you receive the loan money as a goods and services payment from PayPal? If not, then it doesn't go towards the thresholds.
Kudos & Solved are greatly appreciated. 🙂
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Thanks for the response. I guess I have some confusion as do other ebayers on the ebay community board. I would assume that since the working capital loan can be used to purchase inventory, etc. It would not count or get on the 1099 for the IRS as sales. No, paypal did not supply me with services for the loan, just a loan against future sales revenue. I'm just surprised that paypal does not have that as a FAQ as it seems to be on the ebay board. Thanks for the input.
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