Paypal Changes for 2022

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.

@johnk : That's exactly right! you nailed it. What you described IS the problem.

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.

BTW, Here’s one for you. You do know if you buy something, even used, and you ultimately sell it for more than you paid, the difference is a taxable event. Art, antiques, exotic cars are usually hit hard on this. Let's say you bought a sports car for $16,000...Had it for 13 years. Sold it for $40,000,  My accountant told me the difference, minus and expenses you incurred directly related to the car, was a taxable event. Forty years ago you bought a McIntosch XYZ for $1000 and you sell it today $5000....$4000 is taxable...(Not sure if you can deduct the electricity used to run it...Talk to your accountant.....) ....BTW, depending on the accountant, you might hear the term.."Casual Sale"....Be careful with this one. Talk to your lawyer or accountant to be sure.