Paypal Changes for 2022

@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.

This thread is political garbage.

Joke!

Relax, you will simply certify that you paid $5,000, that you didnt save the receipt and that you didnt know years ago that you would need it. This isn’t the Spanish Inquisition. Much ado about nothing…unless someone has been running a side business without paying income taxes. Nothing will collapse, the earth will still spin and the sun will rise. I don’t have a great deal of heartburn about a system attempting to encourage compliance. Im a “everyone should follow the rules and if they dont they should pay the consequences” kind of person.