wooden_flower Volunteer Community Mentor.
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Wow, that is a mixed bag to deal with.
I would keep a spreadsheet, or print out reports from eBay where you can separate the sales between what the charity gave you to sell, and the items of your own that you sold. For the stuff from the charity, call the net from eBay your cost - basically they are consigning the item to you to sell, you are taking 0 markup. So the entire net amount gets paid to your consignee, which makes it your cost.
For the stuff of your own, try to create a value. If you have old receipts, or if you bought on eBay where you can get a report of the costs, that is the best. Next best will be an estimate. I estimate the age, then find a similar current item, back off x years of inflation. Not a perfect system, but reasonable. The goal is to have some documentation in case you were to get audited, which is not likely.
This is strictly for bookkeeping - I would always record the sales the same -
One of these years, when the IRS implements the $600 threshold, you will receive a 1099k. When you get one, record it on schedule 1 as misc income, then record the same amount on schedule 1 as a misc expense so there is 0 taxable income.
Do not report anything until you receive a 1099k. You do not have to report personal sales that generate 0 profit. The IRS is thinking of using $5,000 for the threshold for 2024, but has not made that official yet.
This is my personal opinion - I am not a tax professional, so this is not tax preparation advice.
You pay income tax on any profit, not on your sales amount. You should be determining if you are making a profit compared to what you paid for the item plus expenses. If you make a profit, that is taxable. Then your contribution to charity is a regular itemized deduction, if you itemize.
Where do you get the items you sell?
Wow, that is a mixed bag to deal with.
I would keep a spreadsheet, or print out reports from eBay where you can separate the sales between what the charity gave you to sell, and the items of your own that you sold. For the stuff from the charity, call the net from eBay your cost - basically they are consigning the item to you to sell, you are taking 0 markup. So the entire net amount gets paid to your consignee, which makes it your cost.
For the stuff of your own, try to create a value. If you have old receipts, or if you bought on eBay where you can get a report of the costs, that is the best. Next best will be an estimate. I estimate the age, then find a similar current item, back off x years of inflation. Not a perfect system, but reasonable. The goal is to have some documentation in case you were to get audited, which is not likely.
This is strictly for bookkeeping - I would always record the sales the same -
One of these years, when the IRS implements the $600 threshold, you will receive a 1099k. When you get one, record it on schedule 1 as misc income, then record the same amount on schedule 1 as a misc expense so there is 0 taxable income.
Do not report anything until you receive a 1099k. You do not have to report personal sales that generate 0 profit. The IRS is thinking of using $5,000 for the threshold for 2024, but has not made that official yet.
This is my personal opinion - I am not a tax professional, so this is not tax preparation advice.
