Originally Posted by debbieumphress
OK I am cancelling my paypal account as of 12/31/10 Thanks for the heads up. I won't ever make that much but will go to checks and cash. This is so sad. We already paid taxes on it when we bought it, now paying again.
This does not mean you have to pay taxes on the entire amount reported by Paypal. It means you need to keep records of what you paid for the items you're selling and keep track of your other business expenses and file a schedule C with your tax return.