Let’s say you have a Paypal account and you’ve sold some of your used clothes on Ebay. You’re way under the 1099K threshold of $20K AND 200 transactions for the calendar year. However, if you’re also a ticket broker that receives payments through Paypal (specifically Vividseats but this should apply to Stubhub and even Yazing payments as well,) you’re concerned this’ll put you over the Paypal 1099K threshold and thus making you file taxes on all the used clothes you sold on Ebay. Well, I can confirm that those payments don’t count towards the 20K/200 counter.
Of course, Vividseats will send you a 1099K and you’ll have to file taxes on that, but at least you won’t have a Paypal 1099K as well. Of course Paypal friends and family aren’t counted towards the 1099K counter either.