got my PayPal 1099 /// what now?

Dodbnbav, huh? It is difficult to follow that rant it is so disjointed, but it appears you are talking about paying tax when you buy something. The topic of this thread is tax liability when you sell something. It has nothing to do with paying sales tax or use tax when you buy something.

I'm not sure what you are trying to say, but it is perfectly legal to use the amount you paid for an item to offset income when you sell that item. If you sell it for less than you paid, you have a loss. You do not pay income tax on a loss.

I sold some items on eBay this year and received the 1099K. I have the receipts and shared both with my tax person. 
 

I expect the IRS was concerned about losing revenue and refined reporting requirements for cash applications and resale sites to create more visibility. 
 

@overthemoon  you are correct, the IRS isn't too concerned about someone who sells a few pieces of audio equipment, they are looking for the people who sell tons of stuff and make quite a bit of money on it, but pay no taxes on what they sell.​

as a follow up.. I used HR Block on line to file. My return is very simple so it works well. I traded a lot last year and had almost $50K in sales on PayPal, none of which resulted in a gain. I filled out a form that listed the items I sold, the selling price, any costs associated with selling them (like PayPal fees)  and what I paid for them. It calculated zero owed which was to be expected. All done...... the IRS has already sent my tiny refund in less than a week after electronic filing.

Well if you want to get a tax credit you better have all your receipts...and good luck.