2. misc-audio
  3. 192898-4331

got my PayPal 1099 /// what now?

I assume I owe income tax on any profit I made selling an item, which is probably a loss on most things. Which means I have to show what I paid for the item.

Anybody have any idea on how to go about this. Some things I sold in 2024 I bought over 20 years ago so no way I have proof of purchase. Example.. I sold my 20+ year old Avantgarde Duos for $7K that I paid $10K for.

PLEASE don’t turn this into a PayPal bashing fest or start preaching about the IRS or tell me how stupid I was to use PayPal.

 I am only interested in ideas on dealing with the tax implications

 

thanks

herman
bugredmachine's avatar
bugredmachine
450 posts
 

Looks like the threshold for 2024 is $5000.

@herman  Did Paypal itemize the transactions for you or just give you a totaled number and you have to figure out which items add into that total?

ozzy's avatar
ozzy
7,531 posts
 

PayPal gave a month by month $ amount. It is gonna be hard to reconcile.  But I will.

ozzy

bugredmachine's avatar
bugredmachine
450 posts
 

I'm very curious if "General Payment" which should be Friends and Family according to my records (dates and amounts) will be ignored as income.

I see some of my monies received labeled as Mobile Payments which were supposed to F&F may count against the income side. I'll have to be specific going forward to not allow the mobile app to be used if that turns out to be the case.

I've downloaded all the monthly PP statements and did a quick scan against my spreadsheet. Waiting to see what I get. I'm on the cusp of escaping if the F&F works out. Regardless, I have all the data and evidence. Not looking forward to filling out Turbotax forms.

bigtwin's avatar
bigtwin
1,240 posts
 

I should think you can simply enter any numbers that make sense to you on your return.  Proof will only be an issue in the event of an audit.  I suspect the chance of an audit for the sale of some audio equipment is slim to nil, and slim doesn't live here anymore.  

mulveling's avatar
mulveling
1,966 posts
 

I’m definitely getting hit by this becasue I’m well over the $5K threshold. I should go check PayPal for the forms.

Playing with crypto in 2020 was kind of a nightmare for taxes - LOTS of transactions, short term vs long term gains etc. I learned the little bit of accounting necessary, chose the basis (FIFO, HIFO etc) and wrote my own code to compile the results which I fed into TurboTax. Also had my code generate the IRS forms but didn’t end up needing them - TurboTax has its own inputs for that. Carried the accounting forward the next 3 years, and now I’m finally done with that mess. I was quite proud of it anyways, haha.

At least I’m sure this should be a lot simpler. Everything was a loss (of course), and I just need to track down the "close enough" original payments for cost basis. I assume TurboTax will have another input form for this that makes it relatively simple - we’ll see.

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