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1099k
My 17 year old son wants to open an account here to sell our cellar and attic old stuff and could not find where the new thresholds effective 7/5 posted on Ebay since they have a 600.00 threshold for this year still on the website which has been updated .He probably will sell stuff at a loss but for his sake want to make sure he follows the rules for the 1099k
4 comments
monroe67
Mentor1 year ago" . . . . could not find where the new thresholds effective 7/5 . . . ."
The One Big Beautiful Bill Act (OBBBA) was passed on July 4, 2025. I assume it was signed on July 5, 2025.
Doesn't necessarily mean anything in it is/was effective on July 5, 2025.
" . . . . posted on Ebay since they have a 600.00 threshold for this year still on the website which has been updated. . . ."
I think eBay is probably waiting for an official publication/announcement from the Internal Revenue Service (IRS), telling them (eBay) and other Third Party Payers all the details about issuing Form 1099-K for 2025. In past years, that announcement has come out late in the year, e.g., in November of 2024. A couple years earlier than that, an IRS announcement about Form 1099-K was dated December 23, only eight days before the end of the year.
I think if you continue to look here at eBay's Community Pages you'll eventually see a Notice before the end of the year.
But -- again -- I wouldn't expect to see any eBay announcement until after an official IRS publication.
"He probably will sell stuff at a loss but for his sake want to make sure he follows the rules for the 1099k."
"rules for a 1099-K": Your son will have no rules to follow for a Form 1099-K.
No eBay seller will have any rules to follow for a Form 1099-K. We never did in the past, either; not as eBay sellers.
Again: eBay is required to issue Form 1099-K for applicable sellers.
eBay is required to report to the IRS the amounts of money they (eBay) paid to applicable sellers. On Form 1099-K.
Therefore, it is eBay that has to follow the rules for issuance of Form 1099-K.
Regarding Form 1099-K, the only thing(s) your son, and the rest of us eBay sellers, have to do is wait and see if we receive a 1099-K from eBay.
AND, of course, we all must be sure we fill out our tax return documentation properly. That may mean writing our eBay income onto our Form 1040 -- whether or not we received a 1099-K from eBay.
rfmtm
Mentor1 year agoAs posted the account owner must be 18.
For the occasional garage sale seller, the 1099K is not really a problem, just a couple of extra entries on your 1040 tax form and usually no extra tax due. Besides you should be reporting any income whether you get a 1099 or not.
Generally for most personal item sales there is no profit, as it is obvious you are selling at a loss, so you only need to provide a reasonable estimate of value.
Currently the IRS is allowing a simplified way to do this when just selling personal or garage sale items not for profit or as a business or hobby. You report the total amount as Misc/Other Income. You then can post an Adjustment up to that total amount to offset that income. This results in a wash (zero profit), you will owe no taxes, and the IRS will be happy.
Any accountant or tax software can guide you through this.
lisa5768
Mentor1 year ago@carolweb
You must be 18 to open an account and use eBay. Your son will have to wait until he is 18 to have his own account.
https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259#section3
gosimus
Mentor1 year ago@carolweb
< He probably will sell stuff at a loss >
If he can document that, he won't have to pay any income tax at all. The documentation has to be solid, though. I suggest he learn exactly what kind of documentation Uncle will accept before selling the first item.