questions about buying/selling

I know these topics have been covered but the last, long threads have been about specific situations, with lots of emotion. I have a couple basic questions about buying and selling. I should say that I have no feedback on Audiogon or Audiomart; I have a modest number of positive reviews on eBay. 

These questions are in the context of Paypal reporting income and issuing a 1099k. If I'm understanding it correctly, any sales over $600 generate this taxable income requirement. It looks like many online sales now use the "family and friends" option.

BUYING: It looks to me like Audiomart offers no buyer protection. What protections are available to me as a buyer (other than research and due diligence)? If I insist on using PayPal goods/services (3%), does that provide me with adequate coverage through PayPal? I've read that using friends/family with a credit card offers coverage from the cc company, but I wonder if anyone out here has actually made a claim to a cc company this way. I wouldn't be surprised if a cc company was hesitant since family/friends is not supposed to be used for a purchase. Why would a cc company offer coverage on what should essentially be a cash transfer between friends/family? (And--there's a 3% charge to use a cc for family/friends, as I understand it.)

SELLING: I may want to sell a few things (CR-1, amp, etc). Without an established record, what assurances can I give a potential buyer here or on Audiomart? (I'm fine on eBay.) If I offer to use PayPal goods/services (and pay for it!), would that go far in reassuring a potential buyer that they're protected? 

Finally: I think I read that I wouldn't have to pay tax on income from sales if I can show that I am selling the items for less than I purchased them for. Is this true? And is it easy? (Sigh. I'll just end up paying my accountant to do all the filing work. There's no free lunch.)

I appreciate any general advice here and I'm sorry if I'm misunderstanding how PayPal works. If there's a *recent* thread on this topic that doesn't get into outraged specifics about individual situations, please redirect me. I'm only interested in how the policies work. 


That sounds right to me! 

I'm really just thinking that sellers are "disincentivized" (ugly word) to use PayPal goods/services, which in turn leaves buyers with little or no protection. 

Speaking as a Canadian citizen. Paying tax when you sell used equipment is criminal.

Maybe you should head north. Less tax and free healthcare.



My wife and I have been looking into moving to Canada as a couple of our friends have already done it.  If the House and Senate get taken over with republicans in the mid-term elections in a couple of weeks, that will be a very serious discussion for us.  The thought of us losing or getting less SS is a big reason.


It would be political suicide for any party to cut SS. It would require
60 votes in the Senate and a president's signature. Not going to 
happen. Move to Canada if you wish, healthcare isn't free, the taxpayers
pay for it. Enjoy the longer wait times for health care.