1099-K from PayPal (tax form)

The 1099 only reports proceeds.  Proceeds minus basis  = profit (loss) on the item.  The problem with the sale of personal property is that not to many people keep evidence of their basis in everything they own.  Making this worse, you have to declare the "profit" in the item sold for more that you paid for it, but you cannot declare a loss for items that sell for less.  There is no offsetting of losses in the sale of personal property.  I'd like to know what a tax professional would tell you to do.  Estimate the basis?  

I sold 3 used audio items for $630 total in 2020 and Paypal just issued me a 1099-K.  

I'm guessing its because the buyers asked me to send them a "invoice" (i.e. not Friends and Family payment option) so because of that Paypal treated the transactions as business sales. None of the other dozen or so friends and family transfers from 2020 appear on the 1099-K.

I just compiled a list of all payments received with PayPal during 2020. Including the PayPal friend & family, some not even related to Audio at all (just real friends and family stuff), I had received a total of 48 payments. Definitely NOT two hundred. I don’t know why they issued me a 1099-K. Some of my sales (3-4) was really large, components stuff, so yes, I received over $20K, but I thought it was payments over $20K, AND over 200 payments received.

And I am definitely NOT a business. Why do I have to make up such story?

As for the “invoice” thing, I only had sent 6 invoices, those who asked me to over at USAM.

Anyways, thanks all for chiming in. I will figure this out. It’s just going to take time and effort I was not prepared to have.

typically a 1099k is reported on a sch c for sole proprietor or single memebr llc or business returns.

I do not use turbo tax to prepare my clients returns but if they instruct you to report as other income just make sure there is a spot to input info from the 1099k to a 1099k input form. Even if you zero this out in this area and it does not show as a 1099k which the irs recieves and cross checks to make sure you have reported on your return.