1099-k help

[fitburse]

Hello,

So I have to file the 1099-k for 2017.

I'm pretty new to this but what information would I need to take to my accountant?

Any information from eBay that I may need to provide? Also, I downloaded my 1099k reconciliation. Is that my total sales for 2017? I would greatly appreciate all help and comments. Thank you!

[partial*eclipse]

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wrote:

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 ... People who ignore everything are usually surprised by this stuff while those that pay attention are not....

I was surprised by the new Massachusetts threshold for 1099's, and I consider myself to be a fairly attentive seller. Fortunately,  I'm also one who files accurate tax returns, so there's no actual effect on my return.

[etchesinsand]

I also got a 1099K. what I did is file a schedule c with my taxes. I went to Ebay and downloaded all my statements for each month for all of 2017. I then went to Paypal and did the same thing. On the Schedule C I listed all my paypal fees, shipping fees and refunds as listed on my Paypal statements, then I went to Ebay and listed all my Ebay Fees (that is what you paid them each month) Then I looked at what I sold on each statement and listed my inventory and it's cost. Turns out I'm really not any money! Your 1099K is only what you brought in , It does not take into consideration all the fees you paid out. Hope this helps

[lancelotme]

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@nederlander1wrote:
I've always wondered how many sellers that fly under the PayPal $20,000 and 200 transactions thresholds that generate a 1099 to the IRS actually do report their earnings.

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if they are just selling their own stuff or casual sellers,they may not bother.

but if he is a professional dealer with his own BM business,if he is audited,IRS could ask Ebay for his sales records,it has happened.

In an audit,IRS could ask to see 24 months worth of his bank statements,if they see Paypal,Ebay or payments not related to his store,they could ask 

[lancelotme]

you can just estimate ,deduct mileage,postage ,cost of goods sold from 962.27,and report whatever you think is fair.

[sockmonkeydave]

IRS ?????

Taxes ?????

What is this strange thing you speak of.

Donny you are out of your element.

[atomic_treasures]

How do you calculate your shipping cost ?
This is added in as income ?
Shipping is not income.

[atomic_treasures]

On your 1099-K your shipping is added in as income, which it is not , but it is being taxed as so ? How can this even be legal ??

[atomic_treasures]

So is this why Ebay has implemented the plan to have your sales $$$ go directly to your bank institute and cut out paypal, so that you do not get a 1099-k ?????

[southern*sweet*tea]

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@atomic_treasures wrote:
How do you calculate your shipping cost ?
This is added in as income ?
Shipping is not income.

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ALL the money you receive is shown.  YOU have to take the appropriate deductions on Schedule C - shipping expenses, fees and other expenses.

How you keep track of things is up to you. I'm old school - I use a ledger book to record all my costs and expenses. That's where I get my figures from.

[fern*wood]

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@atomic_treasures wrote:
On your 1099-K your shipping is added in as income, which it is not , but it is being taxed as so ? How can this even be legal ??

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It is income until you show proof of your shipping costs as a deduction. 

[nobody*s_perfect]

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@atomic_treasures wrote:
On your 1099-K your shipping is added in as income, which it is not , but it is being taxed as so ? How can this even be legal ??

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The 1099-K merely reports your total receipts for the year and it is up to you to keep track of your expenses.  The amount that the buyer pays to you IS income.  Then you use all or part of it to pay for postage which is a deductible expense on your Schedule C.  You can even run a PayPal report to pull out everything that you have actually paid for postage.