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Old 06-17-2018, 08:21 PM
 
3,251 posts, read 1,095,250 times
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Quote:
Originally Posted by TaxPhd View Post
The items in question are personal use capital assets, not inventory and no deductible losses are allowed for personal use assets. Regardless of whether or not proceeds are reported on a 1099.
Then he can deduct to the extent of his revenue then and not declare a loss. Either which way, he's not going to pay any taxes on the REVENUE.

Remember that the 1099K is a BUSINESS REVENUE form (you saw the link to the IRS right?). PayPal and the IRS will treat him as a business as a prima facie action. This means he files a schedule C and reports zero profit.

Of course, he can can talk to PayPal and have them yank the 1099K because of the lower than required numbers. That will resolve the issue as well.

Either which way, he's not paying taxes on this. Revenue is not taxable, profit is.
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Old 06-17-2018, 10:00 PM
 
7,822 posts, read 3,409,379 times
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Quote:
Originally Posted by bobsell View Post
Then he can deduct to the extent of his revenue then and not declare a loss. Either which way, he's not going to pay any taxes on the REVENUE.

Remember that the 1099K is a BUSINESS REVENUE form (you saw the link to the IRS right?). PayPal and the IRS will treat him as a business as a prima facie action. This means he files a schedule C and reports zero profit.

Of course, he can can talk to PayPal and have them yank the 1099K because of the lower than required numbers. That will resolve the issue as well.

Either which way, he's not paying taxes on this. Revenue is not taxable, profit is.
I have never claimed that revenue is taxable.

My point, that you erroneously disagreed with, is that the personal use items can’t create a deductible loss.

Not necessarily.
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Old 06-20-2018, 12:47 AM
 
4,378 posts, read 9,150,941 times
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Money processors are REQUIRED to file a Form 1099-K if the recipient has 200+transactions AND was paid $20,000 or more in a calendar year.

However, there is no law stopping processors from filing the Form 1099-K if only one requirement is met. Many processors will file it with just one requirement. PayPal is one of the exceptions who waits for both to be met (cheaper for them- less 1099-K's to file).
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