How do I determine profit or loss on 1099-K without receipts?

Forum|Forum|2 years ago
February 8, 2024
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I sold a few hundred vinyl records in 2023 that I had in my collection. Some I had for years and others for a short time. I purchased some individually from stores, garage sales, etc. and other times I would buy another person's collection. I do not have many receipts for the albums and most transactions were in cash. So how do I determine if I made a profit or loss and how much? I assume this would go on the 1099-K form?

Not A Product Question

ThomasM125

What you describe could be considered a hobby. You aren't allowed to deduct expenses associated with hobby income in 2023 as the tax reform act disallows miscellaneous itemized deductions currently. However, if the activity was limited and only a temporary endeavor you could make the argument you were simply conducting a garage sale type of activity in which you sold personal items at a loss. If that is the case, you wouldn't have to report the income as you sold personal items at a loss so there is no income to report. You can read more about hobby income here: Hobby income

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Sean JAuthor

Thank you for the reply. So, if I buy a collection from someone because there are some albums I have been wanting to add to my collection, or upgrade mine but I resell the reset because I have them or don't want them is that still Hobby?