Quote:
Originally Posted by Johnny630
Any electronic payment whether friends and family or goods and services has to be reported as income if it was a sale of a card......it's never changed. I always report friends and family transactions through paypal that were card related. Those funds get directly deposit the funds into my checking account. Why would I not report this ?? Am the dummy who shouldn't been reporting this?
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Of course, this is what you are supposed to do. How did you do this though? Did you file a Schedule D or Schedule C with the IRS? If you did this as a "hobby" you probably did it wrong. There are absolutely no deductions for a hobby, even though people take them. If you bought a card for $500 and sold it for $400, you would need to pay taxes on the $400 even though you sold it at a loss. For people that don't believe me, just wait until 2023 and you get a 1099-K form. Good luck trying make any deductions with the hobby form.