1099k questions.
So I thought ebay wasn't sending out 1099k to people who sold under the limit.
And I was way below the limit. And I know you still report. But how do you report that you are selling items but not profiting?
I sold items as resell and or at a loss.
10 comments
dbfolks166mt
·2 years agoVirginia has had the $600 limit since 2020. I know I live in VA. You simply fill out a schedule C when you do your taxes it is not that difficult for small businesses and if you are really operating/selling at a loss that loss can be used to offset your other tax liabilities. However, this can only be done for a few years, without showing a profit at some point before the IRS will categorize you as a hobby seller and the rules regarding deductions change.
luckythewinner
·2 years agoSo I thought ebay wasn't sending out 1099k to people who sold under the limit. And I was way below the limit.
You did not sell under the limit for your state. I see at least $600 in sales in the last three months and the VA limit is $600.
But how do you report that you are selling items but not profiting?
you report the income, and then you deducts your expenses and costs. The same as you hopefully did for your sales from previous years.
slippinjimmy
·2 years agoSimple.....
Gross Sales - Cost Of Goods - Expenses (shipping, packaging material etc) = Net Income
In your case, selling items for less than they cost, your net/taxable income would be ZERO.
monica-sells
·2 years agoSorry to be honest and blunt, but if you ask a basic question such as "...how do you report..."
you need to seek a professional, or someone knowledgeable in the accounting field...not a group of sellers on a selling forum.....
You need to have a basic understanding of bookkeeping and/or accounting...once you have that, it will become second nature...
nobody*s_perfect
·2 years agoOP has less than 30 feedback as a seller in the past year. Hiring a professional to process an unprofitable account (COGS greater than gross) seems like overkill.
dnasilver
·2 years agoBut, we have no idea what other streams of income this person may have. Quantity of feedbacks has nothing to do with taxes. It is the dollar amounts. Without knowing a person financials, it is best to tell them to seek help from professionals.
nobody*s_perfect
·2 years agoOf course quantity of feedback is not closely related to their income, but it is an indicator that they are a small-scale seller. Most of my advice is based on the OP statement about "how do you report that you are selling items but not profiting?"
nobody*s_perfect
·2 years agoYour listings indicate that you're in Virginia, which has set the threshold at $600.
https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report/m-p/31575590#M106915
Here's an IRS announcement; scroll down to the section about "Selling personal items at a loss":
https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-party-platform-payments-plans-for-a-5000-threshold-in-2024-to-phase-in-implementation
12345jamesstamps
·2 years agoVirginia has a $600. limit unlike my state California which is $20,000. Rather unfair but you are suppose to report anything over $600. if you live in Virginia.
heckofagame
·2 years agoWhat state do you live in? Your state may have a lower reporting threshold.