mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@6al_4v wrote:that was only a suggestion to show how easy reporting fraudsters can be... relax, i ain't the snitch around here....
It was a suggestion in violation of the Community Policies. These threads are moderated, it doesn't mean anyone "snitch[ed]" on you.
https://community.ebay.com/t5/About-the-Community/Community-Guidelines/td-p/26164369
... comments are unwanted and frankly offensive.
Then why do you insist on continuing to come back every few days to engage this subject again?
A 1099-K turned in to IRS gonna make you reconcile EVERY sale U had.
Because it is a form created and required by the IRS for certain circumstances.
You go over the 5K You sell bunch cheap stuff, say 250 transactions for 6K. This going to IRS and you have to go over all and come up with a COST of EACH item.
The 2023 thresholds on this form was 20,000 and at least 200 transaction. The IRS is CONSIDERING a $5,000 threshold for 2024, but it has not yet been decided.
Ebay gonna furnish GROSS PROFIT they huge cut and shipping like you see on seller hub for net sales.
This is one of the misunderstandings you have. Ebay does NOT report "gross profit" for ANY seller. They simply do not have access to all the information to determine this. Not all seller's costs are represented in Ebay records.
Besides the 1099K form reports Gross Receipts which is NOT the same as gross profit. The form reports all incoming money into the seller's account by buyers without regard to shipping costs, refunds, fees paid to Ebay, etc. You have to reconcile the form to arrive at your net taxable income by subtracting all your expenses from the Gross Receipts amount.
BUTTTTTT I ain't got a clue what I paid 15 yrs ago for something.
That is a problem many sellers are faced with. I did provide you with some links on one of your darn threads to help you figure out how to do this in a way that IRS accepts.
DO the IRS really thing you is gonna tell truth???????
Many of us do as we are aware of how bad it can get and how expensive it can get if the IRS audits you and find that you haven't been reporting all your income.
Some online sellers hid their income from IRS for years, which is exactly why the IRS created the 1099K in 2012.
This may shame a few into reporting small profits so reckon it be a small profit to IRS as well as a big job
ALSO for all the Little Goody 2-Shoe bragging about they report to IRS
This is a big assumption on your part. While we are required to report all our income, that doesn't necessarily mean you Tax debt will increase. For a large number of small and casual sellers, the actual profit [after all costs are deducted] doesn't make any significant impact to the income taxes owed.
I'm a rock-throwing radical Goody 2-Shoes, with the mad skillz of fourth grade math.
Love it.
The age of the item doesn't matter when coming up with a value. Purchase items at auctions and you get a receipt. If it's a garage sale item, write down the price. If it's an item from your home, use the donation value from Goodwill as a price. Cost of goods is calculated by you. I agree with @tsme35 -- even though I don't make much, it adds to my income and will raise my social security (whether it is there or not when I retire is another story!)
It is the right thing to do and I am an honest person. Questioning it makes others question your character. Character is what you do when nobody is watching. Except...the IRS is watching. I read about others who report eBay sellers to the IRS, as there is a reward. Better hope those people don't read your thread and the others who chimed in in agreement.
