From what I understand is if you bought an item for say $10K and sold it for $7k then you have a loss and made no profit and would not have to pay extra tax on this but would have to still document the sale with the right forms to the IRS. I'm unsure what to do if you don't have any proof of purchase receipts. Maybe they don't require any up front. I was actually wondering the same thing.
got my PayPal 1099 /// what now?
I assume I owe income tax on any profit I made selling an item, which is probably a loss on most things. Which means I have to show what I paid for the item.
Anybody have any idea on how to go about this. Some things I sold in 2024 I bought over 20 years ago so no way I have proof of purchase. Example.. I sold my 20+ year old Avantgarde Duos for $7K that I paid $10K for.
PLEASE don’t turn this into a PayPal bashing fest or start preaching about the IRS or tell me how stupid I was to use PayPal.
I am only interested in ideas on dealing with the tax implications
thanks