$5000 limit 2024

[winomore]

I understand the new $5000 limit for 2024. But is there still a bottom line for how many items you sell to go with that?

200 items was the previous number and $20,000. 

Say I sold only one item in 2024 for $6,000, would I receive a 1099K and be required to pay a tax on the profit, which I would do anyway. 

Thanks in advance

[12345jamesstamps]

There is no new limit yet....just gossip.

Since Congress isn't really working on anything these days.

There's no telling what might happen in 2024.

Sellers stopped selling in 2023 thinking it would be a $600. threshold. They were fooled.

I am just going to go no changes this year and if it does happen I will be ready with the "deductions" against a 1099K.

[kensgiftshop]

You misunderstand, the $5000 limit is just talk.

It doesn't matter if you receive a 1099K or not, you still report the income.

Will you owe any income tax, depends on if you made any profit and how many deductions you have.

[ckimodog]

@winomore 

I would contact a tax consultant or attorney.  They could give you more info than an eBay seller/buyer discussion forum.  

Good luck to you

[winomore]

Thank you for the reply but "Gossip" and "Just talk"

Interesting answer

[fern*wood]

Another year...

[winomore]

Thank you for the reply but "Gossip" and "Just talk"

Interesting answer

[yuzuha]

Truly loving all of these threads that are demonstrating EXACTLY why the 1099K reporting threshold is being lowered.

[nobody*s_perfect]

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@winomore wrote:

I understand the new $5000 limit for 2024. But is there still a bottom line for how many items you sell to go with that? ...

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If you believe that the new threshold has been set at $5000, then perhaps you have been listening to gossip and just talk.   Here's a link to the memo which the IRS issued in November which said they are planning it. Given the last-minute nature of these 1099-K-related announcements in the past couple of years, nobody knows what will actually transpire for tax year 2024!   As with the legislated $600 threshold, there is apparently no minimum number of transactions.

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

[12345jamesstamps]

The delay will probably be another delay year . LOL

Here we are just talking about 1099K with eBay....the reason for delays is it has to be for platforms as well for Etsy, Stub Hub, Pay Pal (which is NOT eBay), Square, Cash App, Postmark, Doordash, Uber, Lift and so on.

That all ain't happening over night. LOL

[dbfolks166mt]

     As others have stated nothing is set at the Federal level for the 2024 tax year other than the rumors. There is also no way to tell what the individual states may do in 2024 with regards to establishing their own reporting thresholds for the 1099 which would NOT be overridden by any federal limit. A lot of people are worried about a lot of unknowns at the moment most of which I am assuming do not claim their eBay revenue on their taxes. 

[tobaccocardyahoo]

The IRS may not have the power to set a rate above $600.

There are cases at the Supreme Court whose decision may limit the ability of federal agencies to do anything that Congress did not grant the the right to do.

I suspect they will not decide what to do until after the court rules.

Whether Ebay reports the income on a 1099k or not, you must report your profits from Ebay sales on your tax return.

[mam98031]

Nope, not yet.  IRS is considering that threshold, but they have not yet committed to it.  When and if they drop it to 5k it is unlikely there will be a number of transaction required too.

Keep in mind that getting a 1099K does NOT determine when you have to report your income to IRS.  All income above $400 is suppose to be reported to the IRS with or without a 1099K.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

[mam98031]

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@12345jamesstamps wrote:

There is no new limit yet....just gossip.

Since Congress isn't really working on anything these days.

There's no telling what might happen in 2024.

Sellers stopped selling in 2023 thinking it would be a $600. threshold. They were fooled.

I am just going to go no changes this year and if it does happen I will be ready with the "deductions" against a 1099K.

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Some sellers did the same thing in 2022 for the same reasons.

[reallynicestamps]

The 1099K simplifies your tax accounting.

You are required to report all income.

With a 1099K you know what your GROSS eBay income is, and then with your other records you can subtract your deductions, like postage,eBay fees, procurement, insurance,rent, printer ink and paper, etc.

Then you can happily record your NET eBay income and pay income tax on that.

Don't fuss about it.

Just keep careful records of your expenses. Even if that is just a shoebox full of cash register tapes.