True gifts. This rule applies only to true gifts. You canât avoid paying income tax by calling something a gift when it isnât. For example, a âgiftâ you receive in exchange for services or some other consideration isnât a gift. Income after gift.
Actually, they can. PayPal will put your account into a negative balance and any funds you add or receive will first go towards that negative amount. If you keep a negative balance for over 30 days, they will send you to collections and close your account.
When you make a payment, if you have not selected a Preferred Payment Method, PayPal will fund your transaction in this order: 1  PayPal Balance. 2  Instant transfer from your bank account (if eligible). 3  PayPal Credit. 4  PayPal Cards (PayPal Extras Card or PayPal Smart Connect).