Tax consequences of paypal Options

[sixaddict]

Well we were all aware of this coming but just got my love letter 1099 from PP.
Trying to figure how to handle.
Anyone have legitimate advice?
Obviously the 1099 is gross income……but that would be if cost basis was zero and that is not the case. If you don’t itemize how do you get a fair assessment.
Wont get into political weeds but this is BS.

[dug]

Simple version, I am not a tax accountant, please consult one or read the tax law.

If you know what you paid for the parts, you subtract that from the income.
Also subtract any shipping costs and other fees or expenses, you should have receipts from that if you use online postage services.
If you don't have a record of your original cost, it will be a problem if you are audited.

If you sold parts from a car you parted out, then track the total cost of the car as what you paid for "parts", subtract the parts you sold. Until it's a positive number, you have inventory. When the number goes positive, you made a profit and you're gonna pay taxes.

Again, not a tax accountant, please consult a professional.
cheers,
dug