1099k if money sent as gift?

[mikaela18931]

Will paypal send me a 1099k if money was sent to me as a gift?

[snowshoe]

Not knowing anything about your situation and assuming your question is actually that simple, the answer would be no. 

It's more about sales:   Info from Forbs Magazine:

Here’s how it will work: certain payments for goods and services paid by credit card or third party merchants will now be reported to the IRS via the form 1099-K. The look and feel of the form 1099-K is very similar to the form 1099-INT used by banks to report interest and the form 1099-DIV used by banks to report dividends.

The form 1099-K will be required for “reportable payment transactions.” A reportable payment transaction is basically a transaction in which a payment card (such as a credit card or gift card) is accepted as payment or any transaction that is settled through a third party payment network like PayPal. It does not include ATM withdrawals, cash advances against a credit card, a check issued in connection with a payment card, or any transaction in which a payment card is accepted as payment by a merchant or other payee who is related to the issuer of the card.

What this means, basically, is that taxpayers who have a credit card merchant account, Paypal account or similar account and otherwise meet the criteria will receive form 1099-K from their service provider at the end of the year.

[brewhardware]

No gifted money will not be in the totals on the 1099, nor does it add to the trigger threshold for the generation of a 1099 in transaction count nor dollar amount.

HOWEVER!!! if that money was gifted to you specifically for goods or services and it was done so to avoid tax liability, you should still report it as income. Otherwise, it's tax evasion.

[IIRC]

Um, YES gifted money is included.  It is up to you on your tax form to declare and what not. FYI, gifted money (unless you use the one time exemption) is technically taxible:  i.e. if Grandma gives you $100 for your birthday vs. Grandma gives you $10,000 one time gift to avoid taxes. Further more, how does one expect Paypal (and others) to differenciate what is a gift and what is not?  If you don't pass the threshold, the point is mute.  But if you do pass the threshold and you happen to have gift money and business money, then the IRS will expect you to clear it up when you file. Just saying...

[brewhardware]

What I meant was that if the sender uses payment purpose "money owed", it doesn't register as a business transaction and paypal doesn't even take a fee. However, they said they do researve the right to cancel accounts for misusing this feature to perform commerce style transactions. I equated this usage as gifting.