THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME

There was no Profitmaking, they were all losses, yet PAYPAL sent the IRS a 1099 statement.......There were 4 transactions, 2 Primaluna amps and a pair of Klipsch Forte III's and a Jolida JD9 MKII.

Your going to have to prove those losses with receipts of the initial purchase otherwise your screwed.  Did you call Paypal to ask why your transactions were reported to the IRS?  I mean clearly thats the very first thing you should have done.

eag618 OP75 posts08-06-2021 11:58amThere was no Profitmaking, they were all losses, yet PAYPAL sent the IRS a 1099 statement.......There were 4 transactions, 2 Primaluna amps and a pair of Klipsch Forte III's and a Jolida JD9 MKII.

If they sent the Feds a 1099, they would've sent you one, too.

Yes, if you have receipts for purchase of items and same items were sold st a loss then you can declare the loss. If many was made then must pay tax on profit. I was provided a 1099 by Paypal. Took a loss. To me this is a hobby. I am not in it for profit. Would not have filed loss if I had not received the 1099. Not so sure I want to deal with Paypal any more. 

Attach a note to reply to IRS asking if a Manhatten condo, his and her Mercedes and private school for the kids counts as…. Wait for it…. Income 

you got good advice, claim hobby, document w receipt s the net loss and await a reply.