So... PayPal is trying to help the Democrats and .GOV collect tax.
OK...
The used broken widget I sold for $25 has a Income Tax burden?
I seem to recall I have a receipt for $4,997 when I bought it new.
I will write off FAR MORE THAN THEY COLLECT.
Thanks PayPal.
Mmm.... I thought gifts under $10K were non-taxable ? Otherwise, if I have to claim the income, can I also claim the expenses ??????
The proceeds from selling personal property that you no longer want or need isn't taxed unless it has become a rare collectable since you bought it, and you made a profit on it. The assumption is that used goods will be sold for less than you paid, so zero income from their sale. You already paid the taxes on them after you earned the money you used to purchase them to start with.
Yeah, just got that notification too. Income on selling [bleep] I own?
Phuqq you.
Fugk Paypal.
They make their profit off the float.
Hope they die a slow, painflul corporate death, with everybody choosing other methods for payment.
From now on I'll use zelle or a personal check, if that's what those ass'holes are up to.
I doubt that anyone is intentionally helping the IRS. I suspect that if Paypal is sending out 1099s, it's because the IRS has forced them to.
There you go with facts! I doubt anyone who isn't running an online business is doing $20K a year on Paypal.
OP is from Virginia so keep reading, 600 bucks regardless of # transactions.
Quick chat with my CPA today and he advised that I have a small business and therefore can write off half of my home and half of my expenses such as Internet, electricity, phone food and Weekly massage parlor visits.
Thank you PayPal for the 1099-k... I had no idea I could claim such things for selling $284 worth of widgets.
I will have sold about $6K worth of stuff I don't use anymore (New Year's declutter resolution thing). I better quit while I'm ahead.