Great answers here and I have nothing to add but KEEP ALL RECEIPTS! eBay became a contracted tax collector last year. Not by their choice but the states that want that extra tax money in their coffers. What I still fail to grasp is that tax has already been paid on any used item you sell. Unless you make a profit, only the profit amount should be taxed. This amounts to tax on tax in my mind. Can anyone explain it better to me? AB
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?