Paypal Changes for 2022

@dadork :

no I don't and that's the point. Why does the government feel they are entitled to be involved in the minutia of everybody's every day life? My solution would be the Flat Tax 

The progressive tax system is not new. Look up 16th Amendment from over a century ago, circa 1913. 

I did not create the US tax system, and frankly I don't understand why is so bloated to the point of an entire industry of CPAs, tax advisors, tax attorneys, financial advisors, etc. etc. get paid a lot of money to "help" people with their taxes. But it is what it is. Good luck undoing it. Republican and Democrat governments have come and gone over that century, and nobody has done anything about it, other than making it worse. 

@rbertalotto : and that's great, as this is a side business for you. However, the vast majority of audio enthusiasts selling gear here or in other places using PayPal, do this for pleasure, not a business (i.e. selling something to upgrade to a better / newer unit). THAT is the problem.

Its not hard to keep records. Its not hard to figure out if you made a profit. If you make a profit, you owe income tax. What is it about this concept that is so earth shattering? Is it that some believe they should be exempt from certain income taxes? Are you angry that taxes may be owed or that it has become more difficult to hide profits?

I want to sell my old amplifier  I bought it years ago for 5k and I sold it for 2500 I have no receipt so now I'm taxed on 2500 as profit this is the issue most people do not have receipts for old gear or any other old item. It is just a way to make people buy new a way to kill used item sales and knock out small-time businesses since now you have to treat even the smallest venture like a garage sale or lemon aid stand like a normal business. This will just criminalize 1000s many will not be aware till they get the tax forms in 2023. The sh.t will hit the fan then. Ebay will start to collapse Facebook marketplace will be all ads from big business audiogon and others will have greatly reduced listings. And you with your old gear will have to price in tax you now have to unjustly pay.

@ghasley :

Are you angry that taxes may be owed or that it has become more difficult to hide profits?

Are you asking me? If you did, there is no profit, so I have nothing to be angry about hiding anything. And I keep all my receipts, including shipping receipts, PayPal receipts, etc. etc. I know there is no tax as I did not make a profit. I was just inquiring on how to report that 1099-K in the tax return, as I am not a business. What do you suggest?

So let's go back to my earlier example:

Say for example, I sold something for $1,000, that I bought a few years back for $2,000. Clearly a loss. It’s reported in that 1099-K form that also gets sent to IRS. What do I do with the form? Do I ignore it? Or do I have to report it in my return, and if so, how? Which schedule? Again, not a business, just an audio enthusiast upgrading.