# Unexpected 1099-K From Paypal **URL:** \ **Category:** General\ **Created:** [January 24, 2021, 9:48pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544 "2021-01-24T21:48:10Z")\ **Posts on this page:** 14\ **Page:** 3
**Author:** ![peacock](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/peacock/32/721_2.png) [@peacock](https://www.elitefourum.com/u/peacock)\ **Post date:** [January 26, 2021, 9:55pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/41 "2021-01-26T21:55:32Z")
> [@nish](#): > > > [@justinmew](#): > > > > What is everyone’s threshold to report this on your taxes? Any amount? 5000? 10000? > > Bro I sold total of $40 in 2020 and I’m still nervous about it Just reported to IRS, SEC, and Satoshi Tajiri ---
**Author:** ![nish](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/nish/32/1228_2.png) [@nish](https://www.elitefourum.com/u/nish)\ **Post date:** [January 26, 2021, 10:24pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/42 "2021-01-26T22:24:28Z")
> [@peacock](#): > > > [@nish](#): > > > > Bro I sold total of $40 in 2020 and I’m still nervous about it > > Just reported to IRS, SEC, and Satoshi Tajiri You’ll never take me alive ---
**Author:** ![teraz](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/teraz/32/32704_2.png) [@teraz](https://www.elitefourum.com/u/teraz)\ **Post date:** [January 26, 2021, 10:46pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/43 "2021-01-26T22:46:40Z")
> [@pokeaddict84](#): > > > [@gottaketchumall](#): > > > > @pokeaddict84 I am not a CPA, lawyer, financial advisor or anything like that and I don’t remotely know if it applies but I know that there are exemptions for certain types and amounts of gifts/inheritance and it may just be something you want to look into on the value of the coins. I am quite certain a gift or inheritance of ~$6k in cash (and often much more) from a parent to a child is almost never if at all a taxable event. Since yours was items then sold maybe that varies. At least worth a look. > > Right receiving a small gift isn’t a taxable event, but as soon as you sell the gift you are liable to pay taxes on that sale. Im certain I have to pay taxes on those sales, and since they are valuables (collectibles) subject to the annoying 28% capital gains tax. Same thing with selling an inherited item, but calculations for the cost basis are completely different if the gifter didn’t die before the asset was recieved. Keep in mind the 28% is the max. If your total income for the year is in a lower tax bracket (say 24%), you pay that % in your collectibles sales. If you’re in a higher tax bracket than 28%, you pay 28% on collectibles. ---
**Author:** ![snowy](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/snowy/32/1243_2.png) [@snowy](https://www.elitefourum.com/u/snowy)\ **Post date:** [January 26, 2021, 11:01pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/44 "2021-01-26T23:01:19Z")
> [@teraz](#): > > > [@pokeaddict84](#): > > > > Right receiving a small gift isn’t a taxable event, but as soon as you sell the gift you are liable to pay taxes on that sale. Im certain I have to pay taxes on those sales, and since they are valuables (collectibles) subject to the annoying 28% capital gains tax. Same thing with selling an inherited item, but calculations for the cost basis are completely different if the gifter didn’t die before the asset was recieved. > > Keep in mind the 28% is the max. If your total income for the year is in a lower tax bracket (say 24%), you pay that % in your collectibles sales. If you’re in a higher tax bracket than 28%, you pay 28% on collectibles. Wouldn’t only the short-term (less than 1 year of holding) gains be taxed at your personal tax bracket? Any long-term gains would be taxed at the 28% for collectibles? ---
**Author:** ![teraz](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/teraz/32/32704_2.png) [@teraz](https://www.elitefourum.com/u/teraz)\ **Post date:** [January 27, 2021, 12:51am UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/45 "2021-01-27T00:51:26Z")
> [@snowy](#): > > > [@teraz](#): > > > > Keep in mind the 28% is the max. If your total income for the year is in a lower tax bracket (say 24%), you pay that % in your collectibles sales. If you’re in a higher tax bracket than 28%, you pay 28% on collectibles. > > Wouldn’t only the short-term (less than 1 year of holding) gains be taxed at your personal tax bracket? Any long-term gains would be taxed at the 28% for collectibles? I thought this too, but in another thread a few months ago I was corrected. Short term gains are taxed at ordinary income. Long term gains on collectibles are taxed at ordinary income, up to a maximum of 28%. 2020 tax bracket rates are 10, 12, 22, 24, 32, 35, or 37% depending on income level. If you made less than $163,300 in 2020, the upper part of your income would be taxed at 24% and no higher. Thereby, if you made less than $163,300 in 2020, any part of that income that came from collectibles gains, whether short or long gains, would be subject to your ordinary income tax rate, not 28%. Now, if you are a high earner, say you make $250,000 a year, then the long term capital gains collectible sales would be beneficial to you. Because instead of paying 35% on those sales, you’d only pay 28%. So it’s more advantageous to hold assets/collectibles long term. The point here being, the IRS doesn’t want to reward short term flippers and wash sale traders who buy and sell immediately or within a single year. For high earners that sell collectibles as short term capital gains, they are stuck with paying their ordinary income tax rate, which can be into the 30’s%. Main point here being if you are in a lower tax bracket (24% bracket or lower), your collectible sales are simply treated as income, no matter of short or long gains (if you report on Schedule D that is, treating your cards as investments). The 28% rate only really comes into play for the people making high 6 or 7 figures per year. This is my understanding, but I am not a tax advisor, please confirm this with your CPA or accountant. Also, this article explains this too: [www.atm-cpa.com/article\_10-14\_b.htm](http://www.atm-cpa.com/article_10-14_b.htm) ---
**Author:** ![krill](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/krill/32/1510_2.png) [@krill](https://www.elitefourum.com/u/krill)\ **Post date:** [January 28, 2021, 11:03pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/46 "2021-01-28T23:03:55Z")
Wow, thank god I hoard everything I buy and dont sell anymore cuz I dont know shit about taxes ---
**Author:** ![bonanzagrade](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/bonanzagrade/32/244_2.png) [@bonanzagrade](https://www.elitefourum.com/u/bonanzagrade)\ **Post date:** [January 30, 2021, 1:48am UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/47 "2021-01-30T01:48:11Z")
VA has the low threshold as well! ---
**Author:** ![jaredschallenge](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/jaredschallenge/32/26714_2.png) [@jaredschallenge](https://www.elitefourum.com/u/jaredschallenge)\ **Post date:** [January 30, 2021, 2:04pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/48 "2021-01-30T14:04:13Z")
> [@kinggr](#): > > > [@fourthstartcg](#): > > > > Several states have limits under the federal $20k and 200 transaction threshold. For example, in Massachusetts where I live the state limit is $600 regardless of transaction numbers, this means I get a 1099-K pretty much every year. > > > > You should look up the tax law in your state as each one varies of course, and the best advice is always to speak with a tax expert. In MA, you do not have to file the form if your sales derive from occasional “garage sales” of personal belongings/hobby items/what have you. If you get audited, they’ll look at whether your sales actually are occasional personal item sales or whether you’re running a business. Things like maintaining an inventory, selling large numbers of items, and selling throughout the year are indications that you’re actually running a business and should be filing. > > A fellow Masshole! Same Same ---
**Author:** ![degreen11](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/degreen11/32/1117_2.png) [@degreen11](https://www.elitefourum.com/u/degreen11)\ **Post date:** [February 1, 2021, 10:34pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/49 "2021-02-01T22:34:39Z")
I did probably around $60-$70k in PP G&S sales this year and don’t see a 1099 for 2020 in my tax document reports. This happen with anyone else? ---
**Author:** ![gottaketchumall](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/gottaketchumall/32/161622_2.png) [@gottaketchumall](https://www.elitefourum.com/u/gottaketchumall)\ **Post date:** [February 1, 2021, 10:56pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/50 "2021-02-01T22:56:05Z")
> [@degreen11](#): > > I did probably around $60-$70k in PP G&S sales this year and don’t see a 1099 for 2020 in my tax document reports. This happen with anyone else? Over 200 transactions? It’s AND afaik not OR. 200 transactions AND $20,000. This is just for automatic 1099. Below you are still legally required to report to the IRS just they may not. ---
**Author:** ![thatpikachuguy](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/thatpikachuguy/32/54892_2.png) [@thatpikachuguy](https://www.elitefourum.com/u/thatpikachuguy)\ **Post date:** [February 2, 2021, 7:55pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/51 "2021-02-02T19:55:30Z")
The tax man comes for us all. This is my first year getting one from ebay and I didn’t realize that they only store sales data for 90 days… so I’m going to have to sort through pages of scribbled notes to try to figure my numbers out. So that marks one big downside of ebay managed payments if you aren’t aware of it. I can look at everything from previous years of sales on PayPal, but I have nothing from since I switched over to ebay handling the transactions early last year until November. ---
**Author:** ![gottaketchumall](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/gottaketchumall/32/161622_2.png) [@gottaketchumall](https://www.elitefourum.com/u/gottaketchumall)\ **Post date:** [February 2, 2021, 8:03pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/52 "2021-02-02T20:03:19Z")
> [@thatpikachuguy](#): > > The tax man comes for us all. > > This is my first year getting one from ebay and I didn’t realize that they only store sales data for 90 days… so I’m going to have to sort through pages of scribbled notes to try to figure my numbers out. So that marks one big downside of ebay managed payments if you aren’t aware of it. I can look at everything from previous years of sales on PayPal, but I have nothing from since I switched over to ebay handling the transactions early last year until November. You can definitely pull detailed reports and export them to .csv files for a lot older than that. I just pulled all of last years for tax filing purposes. Unless that is just because I am a store… but I doubt highly they will make unavailable to you information that you’ll need for tax filing. Seller Hub\>Payments Tab\>Reports\>Transaction report and select your dates. ---
**Author:** ![thatpikachuguy](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/thatpikachuguy/32/54892_2.png) [@thatpikachuguy](https://www.elitefourum.com/u/thatpikachuguy)\ **Post date:** [February 2, 2021, 8:20pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/53 "2021-02-02T20:20:53Z")
> [@gottaketchumall](#): > > > [@thatpikachuguy](#): > > > > The tax man comes for us all. > > > > This is my first year getting one from ebay and I didn’t realize that they only store sales data for 90 days… so I’m going to have to sort through pages of scribbled notes to try to figure my numbers out. So that marks one big downside of ebay managed payments if you aren’t aware of it. I can look at everything from previous years of sales on PayPal, but I have nothing from since I switched over to ebay handling the transactions early last year until November. > > You can definitely pull detailed reports and export them to .csv files for a lot older than that. I just pulled all of last years for tax filing purposes. Unless that is just because I am a store… but I doubt highly they will make unavailable to you information that you’ll need for tax filing. > > Seller Hub\>Payments Tab\>Reports\>Transaction report and select your dates. It may be because you have a store. For me it says they are stored for 90 days and to download it regularly if I need to access it further than that. Unless I’m looking in the wrong place. I’ll take another look after work today ---
**Author:** ![thatpikachuguy](https://efour.b-cdn.net/user_avatar/www.elitefourum.com/thatpikachuguy/32/54892_2.png) [@thatpikachuguy](https://www.elitefourum.com/u/thatpikachuguy)\ **Post date:** [February 2, 2021, 9:57pm UTC](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544/54 "2021-02-02T21:57:01Z")
@gottaketchumall you were right, I can export the data that way. Thanks a lot - you just saved me a ton of time and headache! [Previous page](https://www.elitefourum.com/t/unexpected-1099-k-from-paypal/31544.md?page=2)