How can I avoid 1099 reporting when using PayPal friends and family for cryptocurrency purchases?

3 answers

• May 05, 2022 · 3 years ago
  One way to potentially avoid 1099 reporting when using PayPal friends and family for cryptocurrency purchases is to keep your transactions below the reporting threshold. The threshold for 1099 reporting is $20,000 and 200 transactions in a calendar year. By keeping your transactions below these limits, you may be able to avoid triggering the reporting requirement. However, it's important to note that this is not guaranteed and you should consult with a tax professional for specific advice.
  494

  247
• May 05, 2022 · 3 years ago
  Unfortunately, there is no foolproof way to completely avoid 1099 reporting when using PayPal friends and family for cryptocurrency purchases. PayPal is required to report certain transactions to the IRS, especially if they meet the reporting threshold of $20,000 and 200 transactions in a calendar year. It's important to comply with tax regulations and consult with a tax professional to ensure you are properly reporting your cryptocurrency transactions.
  457

  153
• May 05, 2022 · 3 years ago
  Hey there! Avoiding 1099 reporting when using PayPal friends and family for cryptocurrency purchases can be a bit tricky. While there's no surefire way to completely avoid it, you can try to keep your transactions below the reporting threshold of $20,000 and 200 transactions in a calendar year. Just remember, this might not always work, so it's best to consult with a tax professional to make sure you're on the right side of the law. Happy trading!
  451

  113