It happened to me. I would like to know why, if I buy a component or speakers ect. at a local hifi shop, pay sales tax, and then sell that item later on, how is recouping some of the money I paid for the item (at a loss) considered income and what happened to the tax I paid at the time of purchase?
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!
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- 87 posts total
@eag618 I guess the good news is that you may be able to take a home office deduction and deduct other expenses involved in selling audio gear. I guess those of us who may get a 1099K, we are now all dealers?! Disclaimer: I am not a CPA, EA or other tax professional. Check this out: https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-o... |
You would only owe tax in excess of your cost basis. If your the average person that bought a new piece of equipment and sold it a couple years later for less than what you paid for it originally then you owe nothing because there is no taxable income. What your saying would only apply to people or businesses that buy and sell used gear for a profit. |
- 87 posts total