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.
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.
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.
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.