PayPal 1099k form?

[gokingsgo24]

well i spent more than i sold on cases so i entered all that info and i get more of a refund. way to go irs cost the government more money.

[reoddai]

well i spent more than i sold on cases so i entered all that info and i get more of a refund. way to go irs cost the government more money.

I hope that you kept your receipts. Don't forget about shipping costs either. Those should be tracked in Paypal and should be easy to total up.

GL & cheers,
reoddai

[golfermatt91]

Only sellers who exceed the IRS thresholds will receive Form 1099-K. Sellers exceed the IRS thresholds when they receive over $20,000 USD in gross payment volume for the sale of goods or services AND receive over 200 separate payments for goods or services in the same calendar year.

There is no such thing as non-taxable income.

This is one of the ways that a 1099K must be filled out, which is under Internal Revenue Code, Section 6050W.

The other way is by accepting payment cards as a form of payment (credit cards, debit cards, electronic transfer from a bank account, paypal bill me later, etc...)

Third party merchants must report any forms of profit or revenue to the IRS per the PSE.

[GiantsSB42Champs]

ya keep track there are ways to see cash flow in and cash flow out on paypal too.... which is a simple way to put it all together.

[Drewk86a]

Well I guess if they call this income I guess I can write off the cost for all the cases and group breaks. I have done

You certainly can. They report revenue, but you only pay taxes on profits.

Not an accountant, but I looked into this when I found out you can deduct hobby expenses on your taxes. However, the way I understood it was that, like gambling losses, you can only claim hobby expenses to the extent that you claim hobby income. If you spent $1000 last year and sold cards for $500, you can only deduct $500 in expenses.

Please, correct me if I am wrong.

[CoolHandLuke]

Hey don't worry they are not taxing the air we breed yet!

[centrehice]

Do you have to include all receipts when you file? I have about 150 USPS receipts used for shipping.

[Fred Bear]

Not an accountant, but I looked into this when I found out you can deduct hobby expenses on your taxes. However, the way I understood it was that, like gambling losses, you can only claim hobby expenses to the extent that you claim hobby income. If you spent $1000 last year and sold cards for $500, you can only deduct $500 in expenses.

Please, correct me if I am wrong.

You are correct, sir. The difference is that if you can classify as a 'business' and file as such, you can claim losses. In the States, you can only do this for a couple of consecutive years before they will 'auto-correct' you to hobby status.