topic Re: Paypal question in Get your taxes done using TurboTax

Paypal question

mert35xx — Mon, 12 Apr 2021 21:36:54 GMT

I sold items on paypal in 2020, but not enough to get a 1099 form. What information do I need to report, and how do I get that information?

Also, where do I enter that Information on Turbotax?

Re: Paypal question

DawnC — Mon, 12 Apr 2021 21:52:09 GMT

It depends. Did you sell item for your business or did you sell personal items for a gain? A Tax Filing Factsheet for eBay Sellers This applies to other platforms as well, not just E-bay!

Re: Paypal question

mert35xx — Mon, 12 Apr 2021 22:43:06 GMT

I had purchased some trading cards from places like Walmart , Target, etc., and sold some of the extras I had to cover what I was keeping. I think my total sold was about $3300 in 50 or so transactions. I wouldn’t consider it a business. I only did it for about 2 months.

Re: Paypal question

gloriah5200 — Mon, 12 Apr 2021 23:10:11 GMT

So, you could consider it a hobby or just sales of personal property? Was this a "one-time" event or will you continue to buy and sell baseball cards as a hobby or business?

If you consider it a hobby, then you would include the income on the other income line of your return.

However, IRS would consider this the sale of collectibles and the sale of collectibles is considered a capital gain/loss situation.

Please refer to the following link for additional information:
Sale of collectible baseball cards

Re: Paypal question

mert35xx — Mon, 12 Apr 2021 23:33:40 GMT

I would consider it a one time event.

Re: Paypal question

DawnC — Mon, 12 Apr 2021 23:53:03 GMT

If it was a one-time event, you can enter the income as an investment sale as per the link above. Enter the income as proceeds and enter the amount you paid for the items as the basis.

You can enter this info in the investment section of TurboTax. Select the product you’re using for the right instructions.

Note: To report investment sales, you’ll have to use TurboTax Premier, TurboTax Self-Employed, or TurboTax Home & Business.

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