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1099-K from PayPal (tax form)

It looks like I am getting a 1099-k form from PayPal for the first time. I sold a lot of audio items last year, used, while upgrading my system and swapping things around. Obviously I am not a business, not in this for profit, and did not make money, lost money. It’s just a hobby, a costly one.

I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?
128x128thyname

Showing 2 responses by lalitk

lalitk's avatar
lalitk
5,072 posts
 
^^^^I believe it...only one way to beat this, stop browsing for new gear 😊
lalitk's avatar
lalitk
5,072 posts
 
@thyname,

I would consult a tax attorney. I just researched and it appears 1099-K is intended for folks in business or self-employed, 

“Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance.  You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments:
  • from payment card transactions (e.g., debit, credit or stored-value cards), and/or
  • 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”

I have been buying n selling audio gear through PayPal for years and never seen a 1099-K form. 
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