Vivinavi : World : () World

• こーの字
• 2024/12/06 (Fri) 13:07
• Report

This is my understanding, which I quickly researched because I was curious.
Anyone, please point out if my understanding is incorrect.

As a general rule, it seems that if you sell your own unused items for less than the purchase price, no tax is due.
https://www.fusiontaxes.com/thought-leadership/blog/do-i-have-to-pay-taxes-on-proceeds-from-my-garage-sale/#:~:text=In%20the %20vast%20majority%20of,amount%20of%20cash%20in%20hand.

When exchanging money via Paypal, Sending to a friend （ without protection ） is not taxed. Paying for an item or service （ with protection ） may be taxable
https://www.paypal.com/us/cshelp/article/whats-the- difference-between-friends-and-family-or-goods-and-services-payments-help277

Paying for an item or service if more than the specified amount is transferred, Paypal has to report it to the IRS as a 1099-K.
https://www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543

Furthermore, here is a 1099-K for a private sale. What to do ？ but ultimately you should consult a tax professional.
Will the updated 1099-K threshold change apply if I sell personal property, like a couch or an item at a garage sale, if it was sold for less than its Will I be issued a Form 1099-K?
Form 1099-K is an IRS informational tax form that is used to report goods and services payments received by a business or individual in the While payment service providers, like PayPal and Venmo, are required by the IRS to send customers a Form-1099K if they meet the threshold amount ($ 5,000 for calendar year 2024, $ 2,500 for calendar year 2025, or $ 600 for calendar years 2026 and beyond^) PayPal is required to report the total gross amount of payments received for goods and services. PayPal is required to report the total gross amount of payments received for goods and services which can include:

Amounts from selling personal items at a loss
Refunded We encourage customers to speak with a tax professional when reviewing their 1099-K and 1099-K tax returns. We encourage customers to speak with a tax professional when reviewing their 1099-Ks to determine whether specific amounts are classified as taxable income. I think this will not be a problem if the transaction is less than the amount, but in a few years $ it seems that 1099-Ks will be issued for transactions over 600, which could complicate the tax return process.

• きちんと
• 2024/12/06 (Fri) 13:27
• Report

Could you please explain
again in a clearer way?

• こーの字
• 2024/12/06 (Fri) 17:13
• Report

I don't know if #4 is the same as the questioner, but ・ ・ ・
if there is a $ 5,000+ transaction on Paypal for an item or service on 2024, the
1099-K form, Paypal will send a 1099-K to the IRS and the taxpayer.
Basically, the amount shown on the 1099-K should be reported as income on your tax return, but if you sell unused items （ and the sale price is lower than the purchase price ） you may not be eligible.
However, PayPal's comment is that you should seek the opinion of a tax accountant or other expert to determine whether or not you are eligible.

In summary, I think it would be a good idea to consult a tax accountant for more information.