I had bought 2 tickets to a music festival that I couldn't end up going to, for a total of $730. I matched with another person on an internet forum and resold the tickets at face value via PayPal. This was my first time making a transaction of any sort (I've never sold on eBay/Etsy/etc), so I didn't even know I'd be receiving this form. Are there any repercussions to leaving this out of my filing for the year?
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Yes. You need to include Form 1099-K information on your tax return as the IRS will receive this information as well. If you don't report the income, then you will receive a letter from the IRS requiring you to pay tax on the income.
I'm surprised that you received the form as PayPal states the following requirements for issuing Form 1099-Ks on their website:
"PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:
You can also deduct what you paid for the tickets. The gain or loss from the sale will reflect on your tax return. To do so, you need to complete a Schedule C to account for the purchase (expense) and the sale (income). And you are correct, this will essentially be a wash.
See this TurboTax FAQ for steps on completing Schedule C in TurboTax. Click "See entire answer" for the full page view. https://ttlc.intuit.com/replies/3302122
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