$5000 limit 2024

[winomore]

I understand the new $5000 limit for 2024. But is there still a bottom line for how many items you sell to go with that?

200 items was the previous number and $20,000. 

Say I sold only one item in 2024 for $6,000, would I receive a 1099K and be required to pay a tax on the profit, which I would do anyway. 

Thanks in advance

[sevenseas*antiques]

If i sold 599.99 on ebay a month only , all year while staying under 600 per month, i would assume i will not have to report?. Is that safe to say?

Mike

[nobody*s_perfect]

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@sevenseas*antiques wrote:

If i sold 599.99 on ebay a month only , all year while staying under 600 per month, i would assume i will not have to report?. Is that safe to say?

Mike

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No, that is not "safe to say."  First of all, you are supposed to report your eBay income even if you don't get a 1099-K.  Second, the threshold for issuing 1099-K is annual, not monthly.  If you sell $500 per month, that's $6000 for the year, so you would be over the $5000 threshold IF that is what the IRS implements.

[semperfi6870]

Easy. Slow your roll, "player".

[kensgiftshop]

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@sevenseas*antiques wrote:

If i sold 599.99 on ebay a month only , all year while staying under 600 per month, i would assume i will not have to report?. Is that safe to say?

Mike

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No, it's not safe to say that.

Just because Ebay doesn't have to report it, doesn't mean you don't have to.

[pats6915]

I’m pretty sure the reporting threshold is $600 for 2024. 

[pats6915]

I’m pretty sure the reporting threshold is $600 for 2024. That information is on the eBay website. If it is $500 let me know how you know that. 

[pats6915]

5000 I meant!

[nobody*s_perfect]

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@pats6915 wrote:

I’m pretty sure the reporting threshold is $600 for 2024. 

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Do you have any evidence for that?  Such as an announcement or memo directly from IRS, dated later than their memo from November 2023, linked above, which says that they plan to set a threshold of $5000?

[dryophelia]

@pats6915 

It a threshold where a 1099K form is to be issued. 

This form allows sellers to see the amounts being reported to the IRS by the issuer of the form. 
Reporting your income should include all monies brought in, minus expenses, not just what appears on a form. 

[pats6915]

On eBay hit help, the hit fees, then click on 1099k, the eBay site says $600. I’m selling on eBay and I won’t go over $600 until I hear something different. 

[mam98031]

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@pats6915 wrote:

I’m pretty sure the reporting threshold is $600 for 2024. 

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@pats6915 

There is no way for any of us to know that for sure yet.  The IRS has already said they are considering having it changed to $5,000, but that has not yet been approved.  And there isn't likely to be any firm decision made until very late in the year as they have always done.

With that said, it doesn't really matter.  We are all responsible to report our income with or without a 1099K, which is merely a form and nothing more than a form.  The IRS rule is that we are responsible to report all our income every year.  

So no matter what they decide to do, your sales should be reported to IRS every year.  After you are able to take your deductions / costs of sales away, the net income may not have as big of an impact on your taxes owed as some might think.

[mam98031]

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@pats6915 wrote:

On eBay hit help, the hit fees, then click on 1099k, the eBay site says $600. I’m selling on eBay and I won’t go over $600 until I hear something different. 

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It says that because it is currently the law and it has been since 2022, but the IRS has gotten approval for 2022 and 2023 to raise that minimum threshold on the FORM.  But the law has not yet been changed which is why Ebay is stating what the current law is.

IRS has stated that they are CONSIDERING having the minimum threshold changed to $5,000 for 2024, but that has not yet been approved and there is no word yet if that will be a temporary thing for 2024 or become the rule / law.

Still as I previously stated, this is merely a form and nothing more than a form.  It does not and has not EVER set them minimum threshold in which to report income.  We are responsible, with or without this form, any form, to report ALL our income every year.