>receiving $1,000 through paypal and spending $1,000 through paypal is all tax-free. Well, not really. $1000 may not seem like much, but multiply that upt to $

>receiving $1,000 through paypal and spending $1,000 through paypal is all tax-free. Well, not really. $1000 may not seem like much, but multiply that upt to $100000 and make it your sole source of income and you can bet the IRS will be all over you. And it isn't you they'll be auditing, but Paypal itself: http://72.14.253.104/search?q=cache:oX20J-QVyBkJ:www.usatoday.com/money/perfi/taxes/2006-04-11-taxes-paypal_x.htm+paypal+and+taxes&hl=en&ct=clnk&cd=10&gl=ca&client=firefox-a http://72.14.253.104/search?q=cache:oX20J-QVyBkJ:www.usatoda... http://www.pcworld.com/article/id,125368-page,1/article.html http://www.pcworld.com/article/id,125368-page,1/article.html