Paypal Changes for 2022

I live in Massachusetts and I've been getting 1099 for years from PayPal. I sell a 17HMR Bore Guide and do about $3000 a year. I itemize and deduct any expense I can with regard to this little side business.

and that’s great, as this is a side business for you. However, the vast majority of audio enthusiasts selling gear here or in other places using PayPal, do this for pleasure, not a business (i.e. selling something to upgrade to a better / newer unit). THAT is the problem.

BTW, Here’s one for you. You do know if you buy something, even used, and you ultimately sell it for more than you paid, the difference is a taxable event. Art, antiques, exotic cars are usually hit hard on this. Let's say you bought a sports car for $16,000...Had it for 13 years. Sold it for $40,000,  My accountant told me the difference, minus and expenses you incurred directly related to the car, was a taxable event. Forty years ago you bought a McIntosch XYZ for $1000 and you sell it today $5000....$4000 is taxable...(Not sure if you can deduct the electricity used to run it...Talk to your accountant.....) ....BTW, depending on the accountant, you might hear the term.."Casual Sale"....Be careful with this one. Talk to your lawyer or accountant to be sure.

I have no problem what so ever paying tax.....I have a HUGE problem on what the government uses my tax money for!!!