Wasn't quite sure which forum to post this in. So now that paypal is reporting all transactions >$600/year as income, including selling something at a loss (or even just receiving a refund, if I understand it correctly), does anyone have a feel if this Watchclicker article is accurate as far as how to explain on one's tax return next year that you don't actually owe taxes, because it was for a loss?
https://watchclicker.com/...n-on-the-paypal-tax/
Specifically, it says that if you've received a 1099-K, but sold for less than what you paid, what you do is:
"describe the 1099 in your return as 'erroneous miscellaneous income - sale of [item] for loss.'"
"If you made nothing, have confidence in your ledger, notes app, and/or receipts, report the entire amount as 'erroneous income,' and zero out everything besides the actual income via a 'negative' entry."
https://watchclicker.com/...n-on-the-paypal-tax/
Specifically, it says that if you've received a 1099-K, but sold for less than what you paid, what you do is:
"describe the 1099 in your return as 'erroneous miscellaneous income - sale of [item] for loss.'"
"If you made nothing, have confidence in your ledger, notes app, and/or receipts, report the entire amount as 'erroneous income,' and zero out everything besides the actual income via a 'negative' entry."