Quote:
Originally Posted by hockeyhockey
the 1099 portion of this is a question i hear a lot from people who are casual sellers. and i'm far from a tax expert (and haven't read far into this thread), but maybe bob c can answer this:
with regards to the 1099, are people paying for the total amount collected on the cards, or is the amount you paid for the card taken into consideration?
sorry if this was answered already.
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Quick answer, you are only supposed to pay taxes on the NET taxable income or NET capital gains, after deducting applicable expenses and the cost of items sold, from your gross sales amounts. The 1099s only report gross sales, not net taxable income or gain.
And yes, this was also addressed earlier in this thread. Do go back and read through the thread.