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.

[Kilomurion]

I guess what consider earning is everything that come and generated incoming revenue to your bank account and not all money that already stayed at your paypal account,Paypal Hold and pay tax already for all the transactions though I think it wont make your money reduce once it just stay at your paypal