Paypal sending irs 1099?

[Greyhound girl]

Hello! Yesterday I received an email from paypal saying they are sending a 1099 to the IRS. I have sold several items this year on LT. The items were all sold for a loss, but since the total is over the allowed threshold, it is getting reported. I already filed my tax return, so i will need to file an amendment. Had this happened with anyone else? This is the first year it has happened with me. Unfortunately, i live in illinois and anything over $1000 has to be reported now. (In most other states the magic number is $20k). I will also add that 85% of the items i sold were paid using friends and family. Apparently that doesn’t matter.

 

[MMtwo]

Hello! Yesterday I received an email from paypal saying they are sending a 1099 to the IRS. I have sold several items this year on LT. The items were all sold for a loss, but since the total is over the allowed threshold, it is getting reported. I already filed my tax return, so i will need to file an amendment. Had this happened with anyone else? This is the first year it has happened with me. Unfortunately, i live in illinois and anything over $1000 has to be reported now. (In most other states the magic number is $20k). I will also add that 85% of the items i sold were paid using friends and family. Apparently that doesn’t matter.

Hubs sold a couple of thousands worth of audio equipment. Virginia has done the same at 600 (650?) being mandated to report to the state. However, if I understand correctly, this does not mean you have profited that money. We did not include it in either our state or federal. It is certainly under the threshold of federally mandated reporting. We can show the money was not profit, but garage sale type cleanout of personal items.


Meh, if the state wants to make an issue of it, I guess we'll talk then. Your mileage may vary.

 

[AnastasiaBeaverhausen]

Oh geez. I hope I don't get a surprise "bill" from PayPal either!

 

[Greyhound girl]

Thanks! I called paypal customer service and That was no use. I was told there was a glitch in some accounts which is why I just found out about the 1099 weeks before taxes are due. I think i will likely file an amendment for the full amount, and report it as lost money on personal items. I will do a bit more research, i just don’t want any surprises in 2 years from now. Just a big headache.

 

[Slickk]

I know this is an old thread but wanted to share the update for those of us who have sold on Loupetroop/ebay etc..

IRS Form 1099-K: Will You Get One for 2023?

A new IRS 1099-K tax reporting requirement for payment networks like Venmo, PayPal, Amazon, and Cash App won't apply for 2023.

www.kiplinger.com

 

[MMtwo]

I am not a tax professional, but I understood selling personal goods at a loss does not need to be reported. Only gains.

 

[Slickk]

I am not a tax professional, but I understood selling personal goods at a loss does not need to be reported. Only gains.

@MMtwo I believe this is true but who needs the hassle of proving I bought ‘this’ ring from ‘this’ private seller for ‘this’ amount…seems like a PITA to me.

 

[MMtwo]

@Slickk I agree. The 600 rule is absolutely ridiculous, for the record.

 

[Slickk]

@Slickk I agree. The 600 rule is absolutely ridiculous, for the record.

Or even the fact that my kids pay me back thru Venmo for insurance, phone bills etc…would that be taxable if over the $600/20 transactions/year?! Ridiculous is right!!!

 

[stracci2000]

This is why I closed my booth in the antique mall in 2021.
The IRS will be coming for the antique/collectible markets soon enough.
I just don't want to deal with any of this nonsense.