Coinbase transfer from self to paypal account

[PippinTook]

Deposit of funds from persons own external Coinbase account to same person's paypal account is showing up listed as "payment received" in activity tab in paypal...will this erroneously & wrongly show up for 1099 reporting even though you are just transferring funds from yourself on Coinbase account to yourself on paypal account?

That would obviously be a huge mistake. It should be classified as adding funds just like from your bank account. When you deposit funds from your bank account to paypal however, it reads as "transfer" in activity. 

[sharpiemarker]

@PippinTook 

Transferring to bank is not like transferring from a business/third party. It may or may not be reported to the IRS if Coinbase uses PayPal Payout functionality to disperse Coinbase withdrawals. Consult a tax professional for advice just in case it gets reported on the 1099. Coinbase allows withdrawals to bank account so no idea why you would withdrawal to a middleman like PayPal instead as PayPal is not a bank so they can freeze your account/funds at anytime.

[PippinTook]

The reason to transfer to paypal would be to put the funds in the new paypal savings account, offering over 2% interest.

If paypal wants to offer bank services, then they should expect people not tohave to worry about receiving tax forms for sending funds for that express purpose!

[PippinTook]

I suppose this is a general question regarding how paypal treats mass payments from businesses that are not labelled as "goods and services"