The 1099 only reports proceeds. Proceeds minus basis = profit (loss) on the item. The problem with the sale of personal property is that not to many people keep evidence of their basis in everything they own. Making this worse, you have to declare the "profit" in the item sold for more that you paid for it, but you cannot declare a loss for items that sell for less. There is no offsetting of losses in the sale of personal property. I'd like to know what a tax professional would tell you to do. Estimate the basis?
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?