I'm still confused about the 1099-k I received. I reside in MA and received this because I sold over $600 of items on Ebay(paypal). I did not make a profit as this was all items that I initially paid much more for (similar to garage sale). Do I just keep a record and not file this or do I file it anyway showing a loss (or manipulate to a break even)?
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Normally, you would not report the sale of your personal items because you sold them for less than you paid for them. You could leave it off and if the IRS questions it, then show them your documentation. Print out or screen shot something from Paypal showing what you sold was used personal items.
Since it was reported on a 1099-K, you can report it this way if you prefer. This way you offset the cost against the income and end up with $0 taxable income:
Enter it under Wages & Income:
The IRS will not allow you to deduct a loss on personal items that you sell
Normally, you would not report the sale of your personal items because you sold them for less than you paid for them. You could leave it off and if the IRS questions it, then show them your documentation. Print out or screen shot something from Paypal showing what you sold was used personal items.
Since it was reported on a 1099-K, you can report it this way if you prefer. This way you offset the cost against the income and end up with $0 taxable income:
Enter it under Wages & Income:
The IRS will not allow you to deduct a loss on personal items that you sell
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