1099K zLimit

[cwilk]

I know this subject had been done to death. But the 600 dollar  limit for 1099s  that will go into effect next year is getting close.  I am a hobbyist.  I don't make a profit on most of my transactions.  I also don't want my hobby to complicate my already complicated income taxes.  I also don't want to pay for tax preparation because I'll need to file schedules to write off expenses related to something I'm doing for fun. Finally,   has anybody thought that 600 dollars is less than 12 dollars a week in sales.  12 dollars a week in sales isn't a business.  It isnt even a lemonade stand!  I'm looking for informed opinion.  Is the 600 dollar limit going to be law in 2025 or will there be another delay, or a more reassonible limit put in place?  This has been going round and round since I began Ebaying in 1999.  This is the closest its come to actually being implemented.  Fwiw.  I'm almost at 5k in sales for this year.  I reckon I'll stop trading until next year soon.  Finally.  It's laughable that me opening a box of baseball cards, finding a card I already have, and selling it at a huge loss  triggers a report to the IRS.

[buyselljack2016]

It is currently law for 2024. Could be deferred again.

Getting, or not getting a 1099-K has nothing to do with the requirement to report your income to the IRS

[southern*sweet*tea]

The IRS says $5000 for the 2024 tax year:

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

"This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024 and other elements of the reporting requirement, including how best to focus reporting on taxable transactions."

More info:

https://www.jacksonhewitt.com/tax-help/irs/irs-forms/form-1099-k-tax-deductions-and-tax-benefits/

https://blog.taxact.com/new-form-1099-k-reporting-thresholds/

[dhbookds]

A penny saved is not necessarily a penny earned...........  No one can answer the question about  what could be/may be changed.  Since all income (not profit) should be reported (and that's been the law forever), it would behoove you to consult a professional BEFORE you get an IRS letter.......

[cwilk]

Yes.  Of course.  I'll report the 70 bucks I made selling a card from a box of cards that cost me 300.  Or 60 i made selling a cool vintage concert TShirt that no longer fits my physique.  Then I'll spend two days accounting for this when I file my taxes.      If this is what the IRS intends, it is no wonder we are in deep do do.  There is a reasonable dollar amount that separates hobby from business.  It isn't 600 bucks.  And do you truly believe the IRS should be tracking what citizens are making from what are essentially garage sales?

[kensgiftshop]

Close to $5000 this year and sold 2800 items total?

I think you'll have a hard time convincing the IRS it's just a hobby.

Report your income like you're required to do, 1099k or not.

[buyselljack2016]

Selling on eBay is not a "garage sale".

income is income. I don't make the laws.

[luckythewinner]

has anybody thought that 600 dollars is less than 12 dollars a week in sales. 12 dollars a week in sales isn't a business

I don't recall Congress or the IRS ever suggesting that only "business" income is taxable, or defining a business by dollar volume.

That aside ...

I think you can simply use IRS form 8949 to report a sale of a personal use capital asset at a loss. This results in no capital gain and no tax liability.  You can do this with one line on the form.

[cwilk]

Thanks for a thoughtful reply.  What do you think the limit will be in 2025.  Your opinion.

[cwilk]

It's 2800 items since 1999.   

[cwilk]

One more.  If I shovel somebody out after a big snow storm this winter.  And they hand me two crisp 100 bills.  I WILL NOT be reporting it.  So if the IRS is reading this, please have my orange jumpsuit ready.  XL, please.

[janco_6620]

Cuánto dan por la moneda 

[simba6]

You do know your share of the national debt is 140,832.00  as of now?    At some point it will have to be paid.

When it comes to taxes, I still think Leona Helmsley said it best.

[cwilk]

They're not going to get it from me selling  my little coin, or baseball card collections.

[chapeau-noir]

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@cwilk wrote:

Yes.  Of course.  I'll report the 70 bucks I made selling a card from a box of cards that cost me 300.  Or 60 i made selling a cool vintage concert TShirt that no longer fits my physique.  Then I'll spend two days accounting for this when I file my taxes.      If this is what the IRS intends, it is no wonder we are in deep do do.  There is a reasonable dollar amount that separates hobby from business.  It isn't 600 bucks.  And do you truly believe the IRS should be tracking what citizens are making from what are essentially garage sales?

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The reporting is not difficult and it's doubtful that you'll have any tax bill addition by selling your own items because you won't be making a profit. But this is a multinational ecommerce platform, not a yard sale, and it's subject to tax law.

Trust me on this - it's pretty darned easy. I think you're making this more complicated than it needs to be, and it's really not.