1099 k expenses

Forum|Forum|3 months ago
March 19, 2026
2 replies
22 views

CAN USE SOME EXPERTISE IN THIS. CLIENT RECEIVED A 1099-K FROM PAY PAL FOR $1200. HE CLAIMS HE PAID $900. FOR ITEMS AND THIS IS JUST A HOBBY NO BUSINESS. HOW DO I REPORT HIS $300 GAIN. THANK YOU SO MUCH

ProSeries Basic

Just-Lisa-Now-

Intuit Community Champion

have you reviewed the reporting options right on the 1099K worksheet?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

corinne91Author

Level 4

This is so new to me, the only thing i see is the 1099k- reconciliation if I am to guess I am assuming on line b i put down the amount of money he lost?

thank you so much

dascpa

Level 11

Your "wording" may be really important.

Can you offset Paypal income with expenses incurred to generate that income - in most cases yes.

However, you stated this vneture is a "hobby". Now you need to review the hobby rules and how hobby income is reported. Based on current rules you would not be able to deduct any expenses.

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corinne91Author

Level 4

I appreciate you taking the time to reply however now I am totally confused.

client only does this pay pal very little and he stated that he paid $900 some dollars and sold it for over $1000.00 means he had a profit. do you know how to report this?

Thank you

sjrcpa

Level 15

irs.gov has guidance.

It is probably a capital gain for Sch D/8949.

The more I know the more I don’t know.

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