Filing Ebay 1099-K - Individual - Tracking of everything

[sunnyrecoon]

I'm doing taxes and now have to include 1099-K which only shows total income. I casually either resell some stuff or sell my personal stuff that I don't need. I don't keep no transactions, receipts or anything else. It would be absolute impossibility to do it. When doing taxes for 1099-K, do I just best guess estimate all the write offs, like home office, supplies, vehicle expenses, etc....? Like I said, there is no way for me to track down every single item I bought and sold. How do you, casual sellers deal with it? I tried searching for youtube videos to find some guidance and advice but unable to find anything meaningful. Is there a sort of ebay detailed guidance on filing 1099-K?

Also is there an easy way to generate on ebay total shipping and fees that I paid for a year?

[luckythewinner]

do I just best guess estimate all the write offs, like home office, supplies, vehicle expenses, etc....?  Like I said, there is no way for me to track down every single item I bought and sold. How do you, casual sellers deal with it? 

As a casual seller, I keep records because as a casual seller I have always reported my income as the law requires. 

The IRS does not generally accept numbers you pull out of thin air. 

Also is there an easy way to generate on ebay total shipping and fees that I paid for a year?

There are transaction reports you can generate that include all that information. Smeone will come along and tell you where. 

[ltldpr]

Following to see what kind of answers you get for this:

"Also is there an easy way to generate on ebay total shipping and fees that I paid for a year?"

You're going to be told to ask a cpa, accountant or tax expert on the deductions questions, but hopefully someone will answer the above quote. Like with some screenshots for the visual learners.

[12345jamesstamps]

So deductions are subtracted from profits.

Bear in mind it's best to show a profit from selling.

I was told you can like break even for 3 years in a row...but it's best you eventually show a profit after so many years...per my accountant...I don't dare even try to do our taxes.

There are deductions which can be easy without receipts...eBay monthly fee, wifi monthly fee and so on.

We do have information on our yearly9monthly) debit card or credit card statement per month online of certain expenses that might help...hopefully you do have your banking and credit card online to do this.

Any purchases on eBay will show up in purchases for the year.

Good luck

[monica-sells]

first off...here is your report page for everything you contract ebay to do:

https://www.ebay.com/sh/fin/reportslanding

"...I casually either resell some stuff or sell my personal stuff that I don't need..."

you don't casually sell that many laptops without a source. Surely you must have some sort of receipt for them as you buy them. (maybe not, but that's on you)..

selling that many in the last 90 days hardly qualifies as "casually"

"...I don't keep no transactions, receipts or anything else..."

there is no logical reason to not keep ANY records

"...It would be absolute impossibility to do it..."

Yeah, OK

[1786davycrockett]

@sunnyrecoon 

"there is no way for me to track down every single item I bought and sold."

You have been an eBay member for several years, and you have been selling on eBay since well over a year ago.

During that time, both eBay and the IRS have warned eBay sellers on multiple occasions about the income reporting rules, as well as the lower income limits for 1099-K forms.

There is no defensible reason to claim being unprepared for filing your taxes, as we were all warned repeatedly to keep and maintain records of purchases and expenses throughout the year.

You should definitely hire a reliable tax accountant -- and prepare for an even LOWER 1099-K threshold for this year ($2500.00), and lower again in 2026 ($600.00).

[mam98031]

This is a big YOU problem.  You have been a member on Ebay since 2013 and have sold 1900 items.  It is YOUR responsibility to keep these records.

Myth: If taxpayers didn't receive a Form 1099-K, they don't have to report income.
Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i...

Other information that is likely to help you if you will take the time to review it.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

https://www.kiplinger.com/taxes/irs-free-file

[1786davycrockett]

@sunnyrecoon 

" I don't keep no transactions, receipts or anything else. It would be absolute impossibility to do it."

The United States has been collecting income tax since 1913 -- so it's been 112 years.

During all those years, taxpayers have regularly kept track of expenses and income -- everybody who pays taxes knows how to do that.

So there is no "absolute impossibility to do it."

You have sold over 1900 items on eBay since 2013 -- have you not reported your income from selling this "personal stuff that I don't need" during the past 12 years?

You should hire a good tax attorney.

[lux.ra_14]

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@sunnyrecoon wrote:

I don't keep no transactions, receipts or anything else. It would be absolute impossibility to do it.

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Call me Mr. Impossible, then. I've been keeping records for my eBay sales since 1997.

Seriously, it's not that hard and makes your life much easier at tax time. Come up with a system that works for you, and be consistent about it.

[sunnyrecoon]

Good for all of you you keep track of every transaction and receipt. I have no means to do that. I sold so many items because I went for bulk deals in the past few years that was cash only, and still go through and resell as individual items even today. When I say it is impossible, I mean it is. Unfortunately none of the answers answered my concern and question. Thanks for nothing. 

[kensgiftshop]

It's not impossible.

Get a program where you can keep track of everything.

At tax time, you click a buttons and you'll have all the information you need.

I don't have any receipts for any of the things I sold, most were free and given to me.

I keep track of the income and expenses and haven't had any problems yet.

[mam98031]

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@sunnyrecoon wrote:

Good for all of you you keep track of every transaction and receipt. I have no means to do that. I sold so many items because I went for bulk deals in the past few years that was cash only, and still go through and resell as individual items even today. When I say it is impossible, I mean it is. Unfortunately none of the answers answered my concern and question. Thanks for nothing. 

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What does "I have no means to do that." mean?

When you purchased bulk deals [which I've done myself] and paid cash, you can get a receipt from whomever you are purchasing from or you can create a receipt and have them sign it.   Just like many sellers do when they shop Garage sales, flea markets, etc.

When I get an opportunity to purchase in bulk, I took my total I paid divided by the number of items I got and that was the cost for each item as they were sold.  

Getting rude with those spending their personal time here to try and help you will never be the answer.  Unless you simply don't care if you get caught by the IRS for not reporting income.  If that doesn't matter to you, please proceed to do as you have always done.

In post 7 I gave you links on how to deal with the questions you have and other info that should help you.  Did you even take the time to read through them, or did you assume they can't help you?

https://community.ebay.com/t5/Selling/Filing-Ebay-1099-K-Individual-Tracking-of-everything/m-p/34973...

I would encourage you to find a local Accountant with experience with selling on the internet and get their advice since you aren't taking any advice from the experienced sellers that have been trying to help you here.  This issue for you is not going to go away, just get worse as the year goes on.  Compounding year after year especially if you have never claimed your internet income on your Federal Tax Returns.  

You should get with the Accountant to find out your exposure and the best approach to minimize your future exposure.

There actually was information provided that could and would help you, but you have to first have the desire and open mind to be helped.  

[monica-sells]

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@sunnyrecoon wrote:

Good for all of you you keep track of every transaction and receipt. I have no means desire to do that. I sold so many items because I went for bulk deals in the past few years that was cash only, and still go through and resell as individual items even today. When I say it is impossible, I mean it is. Unfortunately none of the answers answered my concern and question. Thanks for nothing. 

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I showed you exactly where the annual shipping and fees are...

other posters showed you a simple method to get "receipts"

.....let me correct your statement (in red)

[caldreamer]

EBAY has "easy to read" 1-page report that shows YTD totals for (orders, refunds, EBAY fees, shipping expense).   Go to PAYMENTS, REPORTS (select LAST YEAR).   IRS requires that you report "gross income" as shown on 1099.   When you file income taxes as a "business" you can deduct business expenses.

GROSS SALES (as shown on 1099)

-Refunds

-EBAY fees

-Shipping expense

-Other expenses (cost of goods, packing supplies, office supplies, mileage, home office deductions)

NET TAXABLE INCOME

I know you said you don't keep any records but "going forward" you need to develop a bookkeeping system.   If you purchase items in a large lot for cash (I would have vendor sign a receipt proving what you paid).   If you spent $60 to purchase 10 item (your "cost of goods" would be $6 for each).

My method is to create 2 spreadsheets (1-for misc. expense and 1-for inventory sold) and also keep a mileage log.

Expense spreadsheet should have columns for (date purchased, vendor name, item description, amount paid).  Keep all receipts to prove your deductions.

Assign inventory# to every item you list (when it sells you deduct "cost of goods" from your inventory). Inventory spreadsheet should have columns for (inventory#, date purchased, cost of goods, quantity, description, date sold, date returned, date resold).   When you file taxes as a "business" you are required to report "beginning inventory on hand JAN 1 and ending inventory on hand DEC 31.   You keep the same inventory spreadsheet FOREVER (just keep adding or subtracting inventory).

$3,000 Beginning Inventory (Jan 1)

 +  1,000 Inventory Added

 -    700 Inventory Sold

+    100  Returned to Inventory (returned merchandise)

$3,400 Ending Inventory (Dec 31)

[lacemaker3]

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@sunnyrecoon wrote:

I'm doing taxes and now have to include 1099-K which only shows total income. I casually either resell some stuff or sell my personal stuff that I don't need. I don't keep no transactions, receipts or anything else. It would be absolute impossibility to do it. When doing taxes for 1099-K, do I just best guess estimate all the write offs, like home office, supplies, vehicle expenses, etc....? Like I said, there is no way for me to track down every single item I bought and sold. How do you, casual sellers deal with it? I tried searching for youtube videos to find some guidance and advice but unable to find anything meaningful. Is there a sort of ebay detailed guidance on filing 1099-K?

Also is there an easy way to generate on ebay total shipping and fees that I paid for a year?

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@sunnyrecoon,

Alrighty, then. You have a major problem here. Based on what you have said, you are not willing or able to keep records. OK, that's your decision. You can do that.

But that's a huge problem in the USA.

The problem is, that the tax laws are heavily in favor of small businesses. The IRS and the tax laws really, really, really, like small businesses, and they give a lot of tax loopholes and such to anyone who is willing and able to act like a business. That means that you need to keep records.

The primary and most important requirement to being able to deduct business expenses to reduce your taxable income, is that you have to, in the words of the IRS, "act like a business". The one, most important, single thing you can do to "act like a business" is to keep good business records.

If you really, really, don't want to file taxes as a business, then the next best thing is to file as an investor. But, in order to file Capital Gains Or Losses, you also have to keep good records.

If you are adamantly opposed to this, and you refuse to keep records, then you are reduced to filing as a hobby seller, which means that you can't (are not allowed to) deduct any expenses against the income at all.

The current president eliminated all deductions for hobby sellers during his previous reign, it was part of the 2018 Tax Cuts and Jobs Act, which eliminated almost all so-called "miscellaneous deductions" from the Schedule A Itemized Deductions form.

Sorry to give you the bad news.