1099 questions

[workbob567]

I have a dumb question what aer the limitations on getting  a 1099 for this year. I have read several different things. Most said 5000 dollars and over 200 transactions. But what if I have over 200 transactions but don't reach 5000 in sales. I just want to make sure i have my poop in a group so I can do my taxes correctly.

[dbfolks166mt]

@rusty1234russell wrote:

This isn’t true. There is a threshold to online selling that if you don’t meet you are not required to report it to the IRS as income. It’s the law and legal. Most major e-commerce companies pay as they smash those thresholds. Having said all this there are tons of people who sell on line old household items, clothes, used goods where it’s not considered a business. Those kinds of sellers are not required to report it on taxes. That’s why the thresholds are in place for non business sellers. If eBay sends you a 1099 then you are required by law to report it as income . If they don’t you are not required to report it and there is nothing unethical about it . 

Wow, you have neatly summarized ALL of the misconceptions about income taxes and 1099-K's all in one paragraph.

Sellers are not required to report their eBay income IF (1) they had no net profit, and (2) also didn't get a 1099-K.  That's the only exemption.  

     Even if they had no net profit and did not receive a 1099-K it may behoove them to report the revenue and expenses as any potential loss can offset other tax liabilities although there are limits on how long you can do that. 

[stuff4divas]

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@rusty1234russell wrote:

This isn’t true. There is a threshold to online selling that if you don’t meet you are not required to report it to the IRS as income. It’s the law and legal. Most major e-commerce companies pay as they smash those thresholds. Having said all this there are tons of people who sell on line old household items, clothes, used goods where it’s not considered a business. Those kinds of sellers are not required to report it on taxes. That’s why the thresholds are in place for non business sellers. If eBay sends you a 1099 then you are required by law to report it as income . If they don’t you are not required to report it and there is nothing unethical about it . 

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..... NOT .......

this is info that tax evaders want to believe to, well, evade paying taxes on income LOL

[mam98031]

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@stuff4divas wrote:

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@rusty1234russell wrote:

This isn’t true. There is a threshold to online selling that if you don’t meet you are not required to report it to the IRS as income. It’s the law and legal. Most major e-commerce companies pay as they smash those thresholds. Having said all this there are tons of people who sell on line old household items, clothes, used goods where it’s not considered a business. Those kinds of sellers are not required to report it on taxes. That’s why the thresholds are in place for non business sellers. If eBay sends you a 1099 then you are required by law to report it as income . If they don’t you are not required to report it and there is nothing unethical about it . 

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..... NOT .......

this is info that tax evaders want to believe to, well, evade paying taxes on income LOL

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This also goes to the confusion over what a business is.  Many small sellers fight like heck to NOT be called a business.  Not really sure why, but they do.  I'm not sure what they think it gains them.

[rusty1234russell]

I was just pointing out that if you sell used items they’re not reportable because of lesser value than originally paid for. I don’t necessarily disagree with you but even if you are not reporting a minimum amount say that’s not gonna get you 1099ed it’s more than likely not gonna have any effect on your tax reporting. I

[mam98031]

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@rusty1234russell wrote:

I was just pointing out that if you sell used items they’re not reportable because of lesser value than originally paid for. I don’t necessarily disagree with you but even if you are not reporting a minimum amount say that’s not gonna get you 1099ed it’s more than likely not gonna have any effect on your tax reporting. I

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That is NOT always true.  If you get a 1099K you will need to report them, after you deduct costs, you wouldn't have income left to be taxed.  But you still have to report it.