Paypal Changes for 2022

To those of you who understand basis in property, I say (with an ode to AC/DC) I SALUTE YOU !!!

Example: I buy an amplifier for $5,000.00 and I pay 6% sales tax, My basis in the amp is $5,300.00. I sell it 2 years later for $3,300.00--I am selling it for a loss. The buyer has to pay tax depending on his/her jurisdiction, but I have no tax liability.

The 1099-K you may receive is only an indicia of what you received/transacted, not a precursor that automatically invokes a taxable event.

Technically, this has always been the law, it’s just the government lagged behind in updating existing laws to reflect online commerce. So I bid you all adieu, into the wild blue........

Highly recommend anyone making a true PROFIT from this business talk to a good tax lawyer in your own state. I used to write off expenses in a high-end horse breeding project in which the difference between a hobby and a taxable business was determined by whether you could declare a PROFIT in 2 out of 7 years.

So by all means, you must document your expenses (Roon, Qobuz, postage, Absolute Sound, packaging, internet fees, cable fees, any car use for the business, travel to shows, meals at shows, etc., etc. It's pretty easy to show a loss so you can write off stuff but your sphincter can get a workout around year 6 if you haven't declared a profit yet.

If you sell a pair of old JBL's for $200 more than you paid for them, nobody's going to know or care, but if you're making a living, it's taxable like any other job.

zelle site says they do NOT report to IRS nor do they issue 1099's

Does anyone have a link to these new limits? PP says it's still the 20,000/200 in a calendar year and they reference IRS IRC Section 6050W. Heres the link: https://www.irs.gov/pub/irs-utl/irdm_section_6050w_faqs_7_23_11.pdf

IRC Section 6050W says the same thing - 20,000/200 in a calendar year

Paypal notified me that they will send me form 1099 this year for selling used gear. I used Paypal for the transaction.

Paypal has been withholding fund that I get paid for selling my used gear on Audiogon. Paypal withholds my funds for weeks and requests tons of information concerning the Audiogon sale for releasing the funds to me. Is there a better online payment service company out there? Is Zelle a good alternative? Please help, I need to stop using Paypal.