Paypal Changes for 2022

Does this make all audiophiles who buy and sell equipment at profits and losses essentially a small business? Do we then have the ability to take deductions, business expense and home office deductions pertaining to the buying and selling of audio gear?

Again, I think that those of us who may multiple times a year or maybe one to two times per month sell gear, may now have been put into the audio “business” by the IRS. If they want to play it that way, then I can deduct my expenses involved in this business. These are the unintended consequences of over regulation. 

This is why I save all receipts from every audio related thing that I buy. So I have records. I put them all in a drawer and save them. But like I said. This should make all audiophiles who turn over gear a business with business expenses and deductions. 

I got my 1099 for 2021. The solution mulifold:

1. Going forward only use PayPal friends and family. Buyer loses buyer protection. But seriously, how much protection is PayPal going to give the buyer? I suspect not much. The real protection I have always relied on is via my credit card issuers and in my opinion American Express is the best. If the buyer wants the protection then they can pay friends and family with their credit card. PayPal let’s buyers do that. The Buyer will be charged the usual PayPal fee that they would have had to include in a goods/services transaction with me anyway. But Buyers real protection is working with sellers who have 95-100% positive feedback over many transactions over years. 
2. The IRS has put us in business now. Submit a scheduled C list the cost basis of everything you sold from your purchase records. Now you can deduct packing and shipping expenses, probably home office or listening room expenses related to evaluations of all the equipment you bought and sold, maybe your Roon subscription and who knows what else. The IRS has made a mistake here. They have messed with the wrong hobbyists. A bunch of middle aged guys with disposable income and probably a bunch of CPAs. As DrCWO from RooExtend says: “Have fun with it!”