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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
herman OP
2,267 posts
 

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.

limomangus's avatar
limomangus
1,460 posts
 

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

fbgbill's avatar
fbgbill
308 posts
 

It was very easy through TurboTax. It is under 1099 MISC and other common income. Just select 1099K and it will direct you through the process. It literally took 5 minutes. I just need to keep my receipts. On the work sheet you check payment for personal property sold at a loss.

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