If you can remember what the things cost you then you can deduct the cost since you already said you lost money. If you lost money, you don't owe taxes on the sales. You just need to deduct what you originally paid on them (since you most likely did not take depreciation against your taxes in the past). It's a pain but if you sold more than $20,000 AND over hit 200 items sold, then you have to deal with the 1099
1099-K from PayPal (tax form)
It looks like I am getting a 1099-k form from PayPal for the first time. I sold a lot of audio items last year, used, while upgrading my system and swapping things around. Obviously I am not a business, not in this for profit, and did not make money, lost money. It’s just a hobby, a costly one.
I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?
I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?