Transactions

[sylvercoins]

If a buyer returns an item is it still considered a transaction?

My concern here is"

I sold 199 items in order to not receive a 1099... but eBay has me down for 200 transactions and the only thing I can figure is they still called the no sale returned item as a transaction when in fact it should be null and void !

Anybody know the facts on this?

[katzrul15]

It is 20k AND 200 transactions.

Are you saying you sold $20k and 199 transactions??

[southern*sweet*tea]

The transaction count and dollar amount doesn't matter. Taxes are owed on ALL taxable income (gross income minus deductions) whether you have one sale for $1 or a million sales for a million dollars.

The ONLY thing that has changed are the 1099 reporting requirements for entities that issue those. That is ALL that has changed. Your responsibility is the same as it has been for a century or more.

[luckythewinner]

---

@sylvercoins wrote:

My concern here is"

I sold 199 items in order to not receive a 1099... but eBay has me down for 200 transactions and the only thing I can figure is they still called the no sale returned item as a transaction when in fact it should be null and void !

Anybody know the facts on this?

---

The 1099-K reports the gross number of payments processed through Managed Payments, not the number of eBay sales that were successfully completed.

Managed Payments cannot adjust the 1099-K to account for does not "subtract" transactions or payments that are returns or refunds.  The law says it should report gross numbers, not net numbers. What you "think" should be the case really carries no weight.

[sylvercoins]

Thank you for the correct answer!

Your the only one that gave a reasonable answer to my question 

Merry Christmas 

[short_circuit.lineman61]

This new $600 limit is how "tax the rich" works in reality.

As far as the IRS, agents work on a quota system, going after people with money is hard and most agents avoid it  because they fight back, not so much for people who are selling yardsale stuff, easy prey.

Interesting that in cook county illinois and many other places if you sell $600 worth of stuff on ebay and not pay taxes on it you are a criminal but if you shoplifted the same amount you will not be charged, that is seriously messed up.

[computeraidllc]

I believe it is based on number of transactions thru eBay. This would include items that are returned as you took payment for them then refunded. It might even count as two because it went back to the buyer.

So if you had 200 transactions and 5 were returned, it would still be reported as 200 transactions because that it what eBay collected from the buyer and forwarded it to you.

[firejake2003]

The 1099 is only for incoming funds (income).  You will have to document the monies refunded for the transaction that was returned and subtract it from your income (refunds are a type of business expense) so you will not be taxed for that amount.

[kensgiftshop]

@sylvercoins 

What different does it make if you receive a 1099 or not, you still claim your income.