PayPal Friends & Family listings. Why is this becoming so common?

2 reasons plain & simple...
1:Sellers are already having to discount prices beyond absurd just to move their gear & are not willing to throw another 3.5% for PP G&S fees away on top of that...
2:Unscrupulous buyers are using PP's Buyer First protection to scam sellers by causing some minimal damage to products then claiming "Not As Advertised",forcing an even further discount on already rock bottom pricing...I have,in the last year,fought off 2 different POS buyers trying this because I photograph every sold product heavily,as well as final packaging & attach these pics to shipping confirmed emails to buyer before they go out..

I've bought and sold gear here and on AM for 35 years. The above example is always a huge fear. Thankfully its never happened to me. Although anything of great value I'm extremely careful on who i will sell too.

Question for all- I thought the IRS put on hold the demand for PP to disclose any transactions over 599.00,. or the issuing of a 1099. Is still the case ?

Any and all info on this would be greatly appreciated.

I'm not trying to hijack the thread...but feel this is relevant info regarding the OP original question.

Example to the above... If I buy a used amp that sold new for 5000 and I buy it for 2500. I then eventually sell it for 2000. If I get a 1099 for 2000...how would I prove a loss at any of the above example? I wouldn't have an documentation to support my loss based on second hand sales.

+1 @lalitk ​​​​​@freediver 

I try to avoid PayPal altogether. My intention is to use Venmo going forward.