Paypal deducts high fees. Tax deductable?

[Johann.Sp...@gmail.com]

Hi folks,

My customer pay often with Paypal, and these guys keep quite a chunk
of my hard earned money as sole proprietor of a little business. Can I
deduct Paypal fees?

[Paul Thomas, CPA]

<Johann.Sp...@gmail.com> wrote

If it's an ordinary and necessary part of your business operations - then
yes.

Paypal fees are nothing more than the expense of banking, wire fees, or
credit card fees.

FYI: If you can (if the market can bear it), consider increasing the fees
or prices to account for and recoup these costs.

Any paypal fees that are not business related (ie: personal fees), those
would not be deductible as an expense of your business.

--
Paul A. Thomas, CPA
Athens, Georgia

[Johann.Sp...@gmail.com]

On Jan 3, 3:43 pm, "Paul Thomas, CPA" <paulthomascp...@bellsouth.net>
wrote:
> <Johann.Spekulaz...@gmail.com> wrote

Thanks for your response, Paul. But I am still confused.

I mean business fees. See: I bill the customer 20 bucks. The customer
mails 20 bucks but Paypal keeps 2 bucks. I have 18 bucks on my bank
account, claim that 18 bcuks as income but can deduct USD 2? Or do I
have to claim 20 $ income when I want to deduct USD 2?

Johan

[smit...@aol.com]

> Johan- Hide quoted text -
>
> - Show quoted text -

Report $20 income - $2 expenses = $18 net income