Hello,
This year, I began getting rid of a lot of old "junk" and no longer needed item using Facebook marketplace, etc.
A majority (most) of the items that I have sold are far less that what I've originally paid for them and/or what the items are worth. I have been receiving payment mainly though Paypal Goods and Services. Lately I've noticed that the pennies I'm making have been adding up, close to the $600 dollar threshold when Paypal reports these earning to the IRS.
It is my understanding that "sold goods" aren’t taxable as income if you are selling a used personal item for less than the original value. My question is, what is the best way to track or prove that when it comes to filling out my taxes? I'd like to continue selling my unwanted things, but if my Goods and Service sale exceed $600 I believe I'll receive a 1099-K at the end of the year, how should I be documenting these sales it as an overall loss versus income? Does that make sense?
Hope this is in the right discussion area - big thanks in advance for any insight.
rjs
