You can just group all of your sale activity under one schedule C business. Call it generic sales. Just put the sum of all the 1099s on line one and then deduct what you paid for each item as cost of product sold. Start a spreadsheet. You can expense shipping as well. The thing you should be mindful of is that if you show losses year over year the IRS could consider the activity a hobby and disallow all the expenses you claimed. The safe harbor for a business activity is net profit it at least 3 of the last 5 years. The whole thing is BS.
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Found this . I guess next year any sales itâs probably best to start keeping track of invoices from when you bought and transactions when you sold .
I wish PayPal had a way of putting the amount lost on the transaction so it actually knew what to 1099 for
That would be really nice but would probably open them up to liability if people lied about losses that PayPal then reported to the IRS.
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Whatâs further concerning is the âoutflowâ that is under legislative review. Not trying to get politics involved on this forum but this is a huge overreach of the IRS and the government to monitor what people are spending money on. This should be concerning to everyone no matter what end of the political spectrum you fall on. Read the link posted
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This doesnât bode well for BST at all. Itâs likely sellers are going to want friends/family payments which opens the door for scammers.
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Im just thinking aloudhere but I wonder if there is a way to set up some sort of escrow system where money can be issued in A friends and family fashion and there can be a third party that holds the money until both parties verify the item is received . Kind of like a PayPal but less instant ?
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