2024's 1099k....is that $5,000. limit on Net Sales or Total Sales?

[srhfc]

2024's 1099k....is that $5,000. limit on Net Sales or Total Sales? Does anyone know? I'm at $4,960 net sales and jsut over $4,000. total sales...which number kicks in the 1099K distribution for 2024? As it stands now...I'm assuming total sales so I'm going to unlist all my items until next year.

[wooden_flower]

@srhfc 

The law is $600 gross receipts. The IRS has indicated that they expect to use $5,000 gross receipts as the 2024 threshold, but have not made it official yet. Gross receipts = item + shipping, not reduced for refunds or fees.

1099k or not, you are required by law to report your sales if you made a profit, and pay tax on that profit.

[srhfc]

Thank you...no profits were made...small losses on the entire lot...i'd rather not get a 1099k  if it is 5k reporting...so i'm going to stop now...under 5k gross.

[wooden_flower]

@srhfc 

If there was no profit, the 1099k is easy to deal with - the amount in as other additions, then the same out out as other deductions. You do need to create a record of the loss, just in case 🙂

[srhfc]

I agree 1099K is easy and nothing to fear...it's just i will start in 2025. My taxes are hard enough, less paperwork...i do them alone.

[rfmtm]

Even if you do not receive a 1099, or owe any taxes, you still must account for the income processed.  The IRS as well as your state can still request this information from ebay with or without a 1099.