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1099-K selling Personal Items --- NOT Business Selling or Hobby Selling
This is just and example, I am trying to get a feel of what I can legally deduct off my selling amount.
I bought an electric motor off eBay 3 years ago, paid $600 for the motor plus $20 for shipping and $6 in state sales tax (eBay collected that from me) for a grand total of $626.
I sold it on eBay last week for $700 plus I charged the buyer $25 for shipping. From the $725 total that eBay reports to the IRS on the 1099-K what can I deduct?
Can I deduct the $626 from the $725 ?
Can I deduct the fees the eBay charged me for my sale $97 ?
Can I deduct the $25 it cost me to ship?
Can I deduct the 8 miles to the post office and back at 65.5 cents a mile which comes to $5.24 ?
Is there any thing else that I could deduct from my selling price?
I will be reporting all my 5 items sold on Schedule D using Form 8949. I stopped selling when I found out about the new reporting threshold.
Please don't answer about Business Selling (you can deduct a lot for running a business) or Hobby Selling (there is no deductions allowed for Hobby Selling).
Please stick to personal item selling.
Thanks
kh-shakhib
·1 year agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
soundfx4
·1 year agoI just came here to say that we should all be blood boiling infuriated at this &$#@. You're selling personal items just to sell them and get rid of them and all of a sudden you have to do a bunch of $&#@ing paperwork?! Reports and forms just because you wanted to $#@!ing sell something? This is $@#!ing bat$#!7 crazy.
ms.rodriguez*
·3 years agoThere are other tax deductions too if you keep on selling. The cost of printer ink, paper, tape, boxes, other printing supplies. If you do it everyday, even a part of the internet costs are tax deductible. To not sell here because you have to report income is foolish especially if you have a house full of items that you no longer need or want. You ONLY pay taxes if there is profit. That profit is added to your other income. The rate that you pay would depend on the tax bracket that you are in.
Think of it as a part time job. If you needed extra cash , would you turn down a part time job because you have to pay state and federal taxes on it? I wouldn't if I needed the cash or needed to clear my house of unwanted stuff. Goodluck.
lacemaker3
·3 years ago@s1wl,
You seem to have a good grasp of what you are doing, so you should be going to the gold source for information like this. All the IRS forms have instructions available, and as long as your reading comprehension is up to it, everything you need is in there.
For schedule D :
https://www.irs.gov/forms-pubs/about-schedule-d-form-1040
https://www.irs.gov/pub/irs-pdf/i1040sd.pdf
Form 4949 is how you report your costs and expenses and income from selling your capital items. The information goes onto the Schedule D :
https://www.irs.gov/forms-pubs/about-form-8949
https://www.irs.gov/pub/irs-pdf/i8949.pdf
The cost basis for your items is how much you spent to acquire the items, plus anything you paid to fix them, or improve them before you sell them. More information:
https://www.irs.gov/forms-pubs/about-publication-551
https://www.irs.gov/pub/irs-pdf/p551.pdf
Sneak peak: you can include the cost of sales tax, freight and/or shipping that you paid to acquire the items that you have sold. They are included in the cost basis.
Check the instructions for whether you can include vehicle expenses. I'm not sure if that's allowed with Capital gains/losses or not.
Since you are already going to be reported Capital Gains income/losses, there's no need to stop now. You've got a good plan to handle this. Keep on selling!
mtgraves7984
·3 years agoI think you've got a handle on it. Your COG, $600 (not $626), your FVF's, your shipping charge plus supplies and mileage. Sit tight for other posters, too...