topic Re: Paypal 1099K in Get your taxes done using TurboTax

Paypal 1099K

morettina — Mon, 13 Jul 2020 20:43:59 GMT

We are a homeschooling family that purchased quite a bit of curriculum over the years that was never deductible. I'm now selling that stuff off bit by bit and received a 1099K form from Paypal as a result. I don't consider it a business, but it seems crazy to have to claim income and get taxes on it for something that I'm actually selling for less than what I originally paid for it. What are my options here to not get dinged by taxes on this income? It's only $500, but I guess my state is one that requires Paypal to issue a 1099K no matter the amount.

Same goes for reselling something on eBay. If I purchased it on eBay and then a few years later, resell it, it's a similar situation.

We do have self-employment income but it's completely different & separate from this.

Re: Paypal 1099K

MinhT1 — Mon, 13 Jul 2020 21:04:50 GMT

The items you resell are considered personal items and I guess that in the great majority of cases (if not all cases), the items are sold for less than what you paid for them. In this case, you have a loss on personal items. This loss is not deductible and you do not have to report it.

Re: Paypal 1099K

morettina — Mon, 13 Jul 2020 21:16:04 GMT

That's what I'm guessing too. From what I can tell, Paypal doesn't report these to the IRS, but does report them to the Vermont Department of Taxes because they have a much lower threshhold. I guess I won't report it and we'll see what happens! And yes, I didn't sell any of these things for more than I originally paid for them, but actually for less.

Re: Paypal 1099K

DawnC — Mon, 13 Jul 2020 21:21:37 GMT

Just keep detailed records in the event you receive an inquiry. But as long as they were personal items sold at a loss, you have nothing to report.