paypal: what's considered earnings

[Liminal]

hey guys,

i am working on my 2004 income tax and need to include some earnings that were processed via paypal. do i account for the transaction fee paypal charged (i.e. are my earnings equal the amount that was sent to me by the payer minus the fee paypal charged)?

thanks,
james


i just realized that i should probably treat the paypal fee as any other biz expense. so the earnings will be Gross - Fee.


p.s. this thread should have been under general biz. sorry

[noppid]

You made the real dollars they sent. The rest is banking fees.

I'm not an accountant, however I did stay at a Holiday Inn Express last night.