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1099-K from PayPal (tax form)

It looks like I am getting a 1099-k form from PayPal for the first time. I sold a lot of audio items last year, used, while upgrading my system and swapping things around. Obviously I am not a business, not in this for profit, and did not make money, lost money. It’s just a hobby, a costly one.

I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?
128x128thyname
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thyname's avatar
thyname OP
3,107 posts
 
Can we please, please stay on topic?

@rodman99999  —- can you please elaborate? I am definitely a business, not doing this for profit, I am losing money.

It has to be something else. Maybe a “hobby” thing, section, on TT, or something else. I cannot possibly see how I will have to pay taxes on something I did not make money from.
jetter
3,033 posts
 
@thyname 
I believe this should answer your question:

How do I enter the 1099-K data for the business? (intuit.com)

Be sure to make note of the very last sentence.
lalitk's avatar
lalitk
5,443 posts
 
@thyname,

I would consult a tax attorney. I just researched and it appears 1099-K is intended for folks in business or self-employed, 

“Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance.  You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments:
  • from payment card transactions (e.g., debit, credit or stored-value cards), and/or
  • in settlement of third-party payment network transactions above the minimum reporting thresholds of –
    • gross payments that exceed $20,000, AND
    • more than 200 such transactions”

I have been buying n selling audio gear through PayPal for years and never seen a 1099-K form. 
thyname's avatar
thyname OP
3,107 posts
 
@jetter —- thanks!

Which sentence are you talking? This one?

———
If your Form 1099-K is for casual one-time sales and is not a business or even a hobby with recurring income (this can include income from PayPal, Square Card reader, or other electronic payments)  enter the income in TurboTax by going to Misc Income and selecting the last option. Enter the description as income from 1099-K and the amount.

———-

I am definitely not a “business”

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