eBay

threestringbeantrees · ‎10-31-2021

Just trying to get a handle on the new tax implications for selling next year. I probably will not be hiring an accountant, I'm just mostly reselling things I have and no longer use, or things I acquired from my mom's estate. I do expect my "income" (item cost + shipping + taxes) to be over $600, which is ridiculous, since actual shipping, fees, and taxes are so high compared to the actual income I generate.

If I purchase something in 2021, then decide to sell it online in 2022, do I include the 2021 cost of acquiring the good on my 2022 taxes - or can I only include 2022 costs of goods on 2022 taxes? And how about if I were to sell something I purchased years ago and have no idea of the original cost - do I have to come up with a reasonable new cost of that item?

Also, is there a resource on eBay that provides detail for these types of basic questions? Or a resource elsewhere?

dnasilver · ‎10-31-2021

The 1099 changes have nothing to do with income. It only shows money from sales. Income is after expenses unless selling an Estate item (if sold in a reasonable amount of time from death 18 to 24 months), your basis would be the sale amount which means you incurred a loss on every sale since you will have shipping, packing, and eBay fees. Old item, odds are you paid more for them that you can sell them for. You do not need the original receipt, just a value you can find by researching that item and the year it was brought or approx year.

Buying items for resale and selling them is completely different. If your sales are miniscule don't worry about. If not, hire a CPA to give you sound direction and an understanding what income is.

Sounds like you heard a bunch of conspiracy theories about the evil 1099 reporting starting at 600 dollars. It does not matter to the IRS if you get a 1099 or not, any income is to be reported.