1099-K

There are a few threads on it. If Paypal is issuing you a 1099-K at the end of the year for hobby-related sales, make sure you deduct your hobby-related expenses. Or, if you're reselling goods, make sure you report the proper cost basis of those goods so you don't get taxed on your revenue (as opposed to income). It's going to be a lot of extra paperwork unfortunately for small businesses.
 
This is the first I have heard of this. What payment options are individuals using who are selling their personal cues using these days, besides F&F?
 
The 1099-K came into effect in 2012. The first years, 2012 and 2013, you did not have to claim it on your tax forms. Now you do after that time. Those who accept credit cards via a merchant account receive a 1099-K at the end of the year. One is also sent to the IRS.

Last year, PayPal and Venmo started sending 1099-Ks to the PayPal accountholder receiving income more than $20,000 as well as the IRS. This year, the amount the PayPal and Venmo accountholder receives that is more than $600 in one year will receive the 1099-K, one for you and one sent to the IRS. It is being treated just like the former 1099-MISC and now 1099-NEC.

Zelle, another way to send money via banks who participate, does not have this requirement -- yet. So you can still send and receive funds via Zelle with banks that participate in Zelle's program.

I personally like the 1099-K because all my sales are paid by credit card. It helps me when doing my taxes each year.
 
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If you purchased a cue 20 years ago for cash in person at a show and are now selling it, how are you proving your base cost? i have several cues acquired over the last 30 years, never had a reason to record acquisition cost, never intended to sell any.
 
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