2. misc-audio
  3. 163567-94588

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?
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Showing 1 response by rwrightcpa

rwrightcpa
30 posts
 
typically a 1099k is reported on a sch c for sole proprietor or single memebr llc or business returns.

I do not use turbo tax to prepare my clients returns but if they instruct you to report as other income just make sure there is a spot to input info from the 1099k to a 1099k input form. Even if you zero this out in this area and it does not show as a 1099k which the irs recieves and cross checks to make sure you have reported on your return.
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