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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?
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?
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- 49 posts total
I received a nice answer on TurboTax forums: https://ttlc.intuit.com/community/taxes/discussion/1099-k-from-paypal/00/1822466 It should be straight forward. I am not ready to do my taxes yet, as I have not received all tax forms for the year. I will also put together a spreadsheet with all items sold via PayPal, along with cost and original purchase details, just in case I am audited. I think I have all the purchase info, either PayPal purchases, or dealers’ invoice / receipts. It will take some time and effort, but doable. The key on this seems to be the definition of “business” vs “hobby”, and this is definitely NOT a business for me. Certainly a money losing hobby. It should be easy to prove it to IRS in case of an audit. |
@thyname Thyname, the best bet is to have a specialist in individual taxes look at this or even better email turbotax for help if you can. I am a CPA but from the corporate tax world and I can usually figure out this individual income tax stuff, but not here. I did some looking around the IRS publications and guidance and nowhere could I find where it would address your exact situation. It seems like it should be really easy but there are complexities that I find that are too long to write about here. The link below doesn't really help. I received a 1099K for personal property sold through PayPal. When I itemize the cost of personal property items, it calculates a loss in turbotax. (intuit.com) |
- 49 posts total