Quote:
Originally Posted by Runscott
I just got an email from them, asking for my tax i.d.
I'm wondering - what if you sold off $30K worth of stuff you've had for years (maybe your comic books from childhood, junk, etc.). If you are going to reference this Paypal 1099 in your tax return, how do you offset that $30K that's not legitimately part of any business? Or do you just have to pay full taxes on it?
|
You either show and be able to prove your cost basis (to get your gains) or you pay the whole thing as income/capital gains. So if your comics cost $100 and you sold them for 30k, your profit (check to see if it's long term capital gains as that probably have a different tax rate) would be $29,900. I am getting 1099s out the wazoo for things I have done......it's all good I guess. I think that is the gist of it but please consult someone who knows more than I do.