Income from selling things may mess up our 6 month average :(

[rustymich]

If you hide $$ in Paypal Act# like rich people hide $$ in Swiss Foreign Bank to hold on... can trustee find out?? (Paypal username account & balance is confidential/secret to outsiders too?)

Our trustee asked if there were such accounts you,but also asked if there was any money sitting there,if there isnt dont count it,also they could ask for bank statements any transfers to your account from them will set a flag dont take a chance at it.

[CCBmama0f3]

There isn't any money sitting there but I plan on figuring out our income with it and then explaining it. My mother gave me 250.00 in the last 6 months also I am including that too just because if they see a deposit in my account I figure they will want an explanation. I am disclosing everything! That was how we stayed above water for this long. But I really doubt any of that will make a difference we have taken such a hit financially over the last 3 months

[daylate]

Then no income; no problem.

[momofthree]

As the others said, that is not income. However, you will have to claim that money as an asset and exempt it as such if it is still sitting in your account at the time of filing.

[frogger]

If you hide $$ in Paypal Act# like rich people hide $$ in Swiss Foreign Bank to hold on... can trustee find out?? (Paypal username account & balance is confidential/secret to outsiders too?)

Hiding anything would be called fraud.....

[tobee43]

I posted on another group about this strange way I buy/sell things using paypal. I don't actually make money but the fact that it is technically income I may have to use this. I have "technically" made $1900.00 in paypal over the last 6 months. It was buy/selling/trading baby items and the only way I make money is to sell the items and buy more to sell (at or below the price I bought them, easy way to try lots of different stuff without buying it all together) and I have stopped all spending-thus no incoming transactions. We will probably be right at the median for our state. If by some odd chance we were slightly over can it be proved that this was non- taxable income and definitely not permanent or stable income. Are they very strict about being right at or below the median? We have a high debt/income ratio and I doubt we can swing a chapter 13.

On another note we live just on the border of MD/DE and MD has $10,000 a year more median than we have and we both work in MD and spend most of our money in MD. It just stinks!

i have sold on ebay right after the first week of them being line......

i still sell........and.....i sell baby goods, clothes...everything......ALL is a loss...

if i purchased a pair of jeans for $50.......sold them for $10....paid paypal and ebay.....shipping supplies etc....i'm down money. why sell??? because even the $5 helped us at the time.

i sold everything i owned to EAT during our bk filing months......and told my atty, he said it's a loss NOT a gain. i have claimed that business as a "trading" and hobby business...after all you can usually only claim business loss for 5 years before the IRS begins to begin wondering.

however, we were unemployed at the time, and even so, i never claimed it.

many may disagree......see that my losses as hiding my used jean assets.......LOL!!!! selling clothes to eat and pay bills are a wash for us, at least.

[CCBmama0f3]

We are only $100.00 under the maximum income to file including my paypal transactions. I just really hope this doesn't mess us up. So I can consider this a buisness even though I really don't have a buisness? That may help

[tobee43]

We are only $100.00 under the maximum income to file including my paypal transactions. I just really hope this doesn't mess us up. So I can consider this a buisness even though I really don't have a buisness? That may help

it's always difficult for really honest people such as yourself.....you think your hiding something and feel guilty...and it's all part of the stress of the entire process....i promise you, figure it out...what did you pay for the items as opposed to what you told the items for..(including ALL costs).....

see.......it's ok..

[stratos]

From the IRS website: "If your online auction sales are the Internet equivalent of an occasional garage or yard sale, you generally do not have to report the sales. In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable. Losses on personal use property are not deductible, either." So at least to the IRS, it doesn't seem like income if it's occasional.

The IRS webpage, titled Tax Tips for Online Auction Sellers, provides more info about related situations, including more regular online sales.
http://www.irs.gov/businesses/small/...202939,00.html.

[JEM]

There isn't any money sitting there but I plan on figuring out our income with it and then explaining it. My mother gave me 250.00 in the last 6 months also I am including that too just because if they see a deposit in my account I figure they will want an explanation. I am disclosing everything! That was how we stayed above water for this long. But I really doubt any of that will make a difference we have taken such a hit financially over the last 3 months

Is the money from your mom a loan, or a gift just to help out in a rough time? If it was a one time $250 gift, than you shouldn't have to include it as income. Our attorney said anything that was a gift was NOT income. Always good to tell your attorney though, he/she can decide what is relevant and what isn't.

[CCBmama0f3]

It was a gift. My account was overdraft and she was helping us through hard times

[JEM]

It was a gift. My account was overdraft and she was helping us through hard times

I don't think that will be considered income. Tell your lawyer what the money was from (as it's seen on the bank statements), but as my attorney explained to us, those are not counted (at least in our district).

[tobee43]

From the IRS website: "If your online auction sales are the Internet equivalent of an occasional garage or yard sale, you generally do not have to report the sales. In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable. Losses on personal use property are not deductible, either." So at least to the IRS, it doesn't seem like income if it's occasional.

The IRS webpage, titled Tax Tips for Online Auction Sellers, provides more info about related situations, including more regular online sales.
http://www.irs.gov/businesses/small/...202939,00.html.

exactly............perfect!!!! response and i'm so happy you posted it. so many people are so frighten they are stealing or committing fraud for selling their used items to put food on their table...it's almost sad.

thanks for the EXCELLENT informative info!!!!

[CCBmama0f3]

We have our 2nd appt with our atty on Friday and we are finishing filling out the worksheets. The income worksheet asks for each individual month in the last 6 months income. It says to include all income including gifts, gambling winnings, and any other possible income. I would love to just use our gross income and then in parentheses show the extra from outside sources( my money from my mom and pp) that are not a constant and may not be considered actual income, do you think that is ok?

[JEM]

We have our 2nd appt with our atty on Friday and we are finishing filling out the worksheets. The income worksheet asks for each individual month in the last 6 months income. It says to include all income including gifts, gambling winnings, and any other possible income. I would love to just use our gross income and then in parentheses show the extra from outside sources( my money from my mom and pp) that are not a constant and may not be considered actual income, do you think that is ok?

Our paperwork asked for all of that too, but just because you list it on there, doesn't necessarily mean it will be counted in your income figures.

I think you'll be fine on the $250 gift and the Paypal $$.