paypal "gift"

The #1 community for Gun Owners in Indiana

Member Benefits:

  • Fewer Ads!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • Bradsknives

    Master
    Rating - 100%
    8   0   0
    Mar 1, 2010
    4,280
    48
    Greenfield, IN.
    People will abuse the "gift" option, but there is a reason that Paypal has this option and I'm sure they know that they lose some fees do to abuse or fraud as you call it. I use the "gift" option frequently. Example: If someone buys something on our (Knife Lady and mine) website and that item belongs to Knife Lady, the payment goes into my Paypal account and I pay the Paypal fees on that transaction. When I pay Knife Lady the money that is due to her, I "gift" the money to her. I don't see anything wrong with what I'm doing, I paid the fee on the original transaction. :twocents:
     

    jedi

    Da PinkFather
    Site Supporter
    Rating - 100%
    51   0   0
    Oct 27, 2008
    37,835
    113
    NWI, North of US-30
    People will abuse the "gift" option, but there is a reason that Paypal has this option and I'm sure they know that they lose some fees do to abuse or fraud as you call it. I use the "gift" option frequently. Example: If someone buys something on our (Knife Lady and mine) website and that item belongs to Knife Lady, the payment goes into my Paypal account and I pay the Paypal fees on that transaction. When I pay Knife Lady the money that is due to her, I "gift" the money to her. I don't see anything wrong with what I'm doing, I paid the fee on the original transaction. :twocents:

    Do you use the "Gift" option or the "Money Owed" option under the "personal" tab to do this?

    Both options along with the "other" and can't recall the other item under the personal tab are free when the money comes from your PayPal balance or bank account.

    The reason I ask is more from a tax-preparing/book keeping point of view.
    You should really use the "Money Owed" so you can properly label the transfer as an 'expense' on your internal books/records as opose to a 'gift'.
    if you ever get audited by the IRS seeing it as "money owed" rather then having to explain it's "money owed" but labeled as a gift will make the audit go easier.

    -jedi
     

    jedi

    Da PinkFather
    Site Supporter
    Rating - 100%
    51   0   0
    Oct 27, 2008
    37,835
    113
    NWI, North of US-30
    I never noticed there was a gift box will have to check it out.


    You have 2 tabs when you send money.
    By default you are given the "fee tab so to speak and the option to send money for

    -ebay item bought
    - services
    - other purchases

    Near the middle of the screen is a tab called personal which allows you to send money to another account for free (from your onw account or bank aco**** linked to paypal) or you can use a credit card but you will pay the % fee associated with using a CC.

    !!!IF YOU BUY SOMETHING DO NOT USE THE PERSONAL OPTION!!!
    !!!IF YOU BUY SOMETHING DO NOT USE THE PERSONAL OPTION!!!

    You will not be protected by PayPal's agreement if the buyer does not send you the item, sends you a broken item, etc. Unless you really know the person and have seen the item first hand don't run the risk for it.

    I guess you could use the personal CC option and get protection from your credit card but why risk having to do all that and take the % fee when you can use the defualt tab and not avoid the fee (you don't see it when you buy stuff anyways).

    From the "seller's" point of view when we get a "gift" there is no way for us to print a mailing label for you, giving you a tracking number on Paypal.

    -Jedi
     

    jetmechG550

    Expert
    Rating - 100%
    4   0   0
    Nov 4, 2011
    1,167
    38
    Has anyone successfully disputed a transaction outside of eBay where paypal was used? I know of several forums in the RC community where paypal basically said sorry, not our problem. I use the paypal gift option all the time with a few people I know, one guy does some graphics work me or other local transactions where it's easier to use a paypal balance. Not a big thing.
     

    Bradsknives

    Master
    Rating - 100%
    8   0   0
    Mar 1, 2010
    4,280
    48
    Greenfield, IN.
    Do you use the "Gift" option or the "Money Owed" option under the "personal" tab to do this?

    Both options along with the "other" and can't recall the other item under the personal tab are free when the money comes from your PayPal balance or bank account.

    The reason I ask is more from a tax-preparing/book keeping point of view.
    You should really use the "Money Owed" so you can properly label the transfer as an 'expense' on your internal books/records as opose to a 'gift'.
    if you ever get audited by the IRS seeing it as "money owed" rather then having to explain it's "money owed" but labeled as a gift will make the audit go easier.

    -jedi

    That is a very good point from a record keeping view point. I have been using the "gift" option. From now on I'll start using the "money owed" option when it is appropriate.

    Rep inbound. :yesway:
     
    Top Bottom