Q. A 1099K from PayPal does not have to be reported on our taxes if the price we sold the items for was less than the original purchase price. What do you base this answer on?
A, The general discussion here in this forum (see previous link provided), particularly the fact that there is no 1099-K entry point in TurboTax.
Q. Any official source / link from IRS?
A. Not yet. But the IRS will eventually discovered the can of worms they opened
