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Old 02-03-2018, 09:17 AM
 
Location: Massachusetts
11,184 posts, read 12,147,587 times
Reputation: 15452

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So I received a PayPal 1099-k in the mail today. Just to clarify, I am not a small business. I used it to sell mostly crap around the house and resell car parts. Pretty much every sale was a loss from my initial purchase price.

But I received one today stating 43 transactions for 2017 and $4200 in sales.

Have the rules changes? I thought it was $20k and 200 sales before you got a 1099-k

Last edited by BostonMike7; 02-03-2018 at 09:32 AM..
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Old 02-03-2018, 11:48 AM
 
Location: 5,400 feet
3,056 posts, read 2,924,516 times
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I would contact PayPal because $20K and 200 transactions is still the rule (and they so state on their web site). I have read some place that if your 1099k is not available on your account on their web site that it was noy submitted to the IRS. You should check on that.
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Old 02-03-2018, 03:22 PM
 
723 posts, read 1,542,252 times
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Except in Vermont and Massachusetts (where, OP, based on your username you reside). See https://www.paypal.com/us/selfhelp/a...atement-faq729 and https://www.mass.gov/service-details...-organizations.

It took me 30 seconds to Google this and find the answer. Just sayin’
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Old 02-03-2018, 03:33 PM
 
Location: Massachusetts
11,184 posts, read 12,147,587 times
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Well that's interesting now. A lot of the parts I sold on eBay are parts I acquired locally used many years ago and then further sold on eBay for a loss.

Thanks for the info
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Old 03-04-2018, 08:47 AM
 
2 posts, read 1,943 times
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You can claim loss instead of profit when you file tax return related to 1099....then you don’t need to pay any taxes.
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Old 03-07-2018, 12:16 AM
 
7,823 posts, read 3,413,774 times
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Quote:
Originally Posted by Outsider15 View Post
You can claim loss instead of profit when you file tax return related to 1099....then you don’t need to pay any taxes.
No he can’t. As stated by the OP, he isn’t a business, and no losses are allowed on personal use assets.
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Old 04-07-2018, 02:14 AM
 
1,010 posts, read 596,673 times
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Quote:
Originally Posted by BostonMike7 View Post
So I received a PayPal 1099-k in the mail today. Just to clarify, I am not a small business. I used it to sell mostly crap around the house and resell car parts. Pretty much every sale was a loss from my initial purchase price.

But I received one today stating 43 transactions for 2017 and $4200 in sales.

Have the rules changes? I thought it was $20k and 200 sales before you got a 1099-k
Wow that's crazy. I haven't heard of them doing this. How do they know the money you got was from sales and just gifts or money owed you for other things? I wonder why they nailed you - and not the gazillion other people also selling under the $20k/200 limit?
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Old 04-07-2018, 06:00 AM
 
Location: Sweet Home Chicago!
5,641 posts, read 4,251,826 times
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one more reason not to use these services... sell the crap locally (craigslist, etc.) cash only or donate it and write it off as a donation.
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Old 06-17-2018, 07:28 PM
 
3,251 posts, read 1,097,906 times
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Quote:
Originally Posted by TaxPhd View Post
No he can’t. As stated by the OP, he isn’t a business, and no losses are allowed on personal use assets.
Income from a 1099 form is reported on schedule C (Profit or loss from business) for smaller amounts you can use C-EZ.

https://www.irs.gov/businesses/under...ng-your-1099-k

Even if you're not "running a business" the form is a business income form.

Report the revenue on C-EZ, then report the cost of items as your cost of goods sold, deduct shipping costs as expenses and viola! You got a nice loss to report on your tax return.



Quote:
I thought it was $20k and 200 sales before you got a 1099-k
You're right.

Quote:
in settlement of third-party payment network transactions above the minimum reporting thresholds of –
gross payments that exceed $20,000, AND
more than 200 such transactions
But since PayPal has screwed up and sent the form already, that means the IRS knows about the revenue.

You are not taxed on revenue, you are taxed on profit, and that's where your expenses come into the picture.

Disclaimer: IANAL but I play one on TV
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Old 06-17-2018, 08:02 PM
 
7,823 posts, read 3,413,774 times
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Quote:
Originally Posted by bobsell View Post
Income from a 1099 form is reported on schedule C (Profit or loss from business) for smaller amounts you can use C-EZ.

https://www.irs.gov/businesses/under...ng-your-1099-k

Even if you're not "running a business" the form is a business income form.

Report the revenue on C-EZ, then report the cost of items as your cost of goods sold, deduct shipping costs as expenses and viola! You got a nice loss to report on your tax return.





You're right.



But since PayPal has screwed up and sent the form already, that means the IRS knows about the revenue.

You are not taxed on revenue, you are taxed on profit, and that's where your expenses come into the picture.

Disclaimer: IANAL but I play one on TV
The second half of my post is the key point:

Quote:
Quote:
Originally Posted by TaxPhd View Post
No he can’t. As stated by the OP, he isn’t a business, and no losses are allowed on personal use assets.
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.
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