As a California resident nothing surprises me regarding tax collection. Try buying cigars online. I canceled a recent transaction before completion . There was a 8.75 % state sales tax added for Ca and a $.99 cent State Of California Franchise Tax registration fee . Upon further research , my purchase was to be reported so I could then file ( at my expense ) and pay an additional 56.8 % tax on my purchase . So every $100 incurred a total of 65% state tax . I also had an in law that earns $330 K a year salary receive a letter from the state that said based on his income he owed an estimated amount to California for undetermined miscellaneous internet purchases . The funny thing is , he doesn’t shop on line at all . I no longer buy cigars in America and my online purchases go to my cabin in Oregon . Good luck with the IRS . Having a friend that is employed as one of their collectors , my opinion is that they are looking for the truth and an honest person is believed . Cheers, Mike .
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?