I sell items on eBay and Amazon and I know that this year I will reach over 200 transactions or $20,000 for both eBay and Amazon. I will also receive a 1099 with this information. Can anyone share their experience with paypal write offs on your income tax? Let's say I purchase 10 items with Paypal for $100 and end up selling these for $200 after fees, leaving me $100 profit. I should get charged for the $100, but will I get charged on the $200 since I sold on Amazon/eBay and did not purchase these items on eBay or Amazon? If anyone has any experience with this at all, please share this information with me. I want to understand this before I hire an accountant for the first time.