If you sold the items at a loss then there is no tax due. If it is a hobby loss then it cant be deducted but as stated you sold at a loss there is no tax due if that makes sense. If this is a business for you then the loss would be deductible. Either way you would just have to report the transactions since paypal has reported and filed the 1099. I am a cpa and would be happy to take a look at the letter and give you some advice free of charge. pm me
THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME
I had multiple transactions here and at US Audio Mart in 2019 and yesterday received a letter from the IRS stating the transactions were "Taxable Income" anyone else ever experience that with Paypal and now what?
Fighting the IRS is not something I look forward to!
Fighting the IRS is not something I look forward to!