I am selling only my own personal items without any reciepts why the 1099? So unfair

[quick894321]

I am selling only my own personal items from up to 50 years ago without any old receipts why did i get a 1099?  This is so unfair..My wife of 40 years passed away and i have been selling her old jewelry and my collectibles from decades ago. How am I supposed to have receipts for for all the items or even know whether i am making a profit or loss. I do not have an Ebay store or any type of business with my selling...What to do?

[nobody*s_perfect]

Can you understand that those thresholds represent the requirement for eBay to send you (and the IRS) a 1099-K, not the requirement for you to report your income? 

[gone.c-33]

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@rainbowchaserecords wrote:

LOL! You only had to report if you earned $20,000 or more in 2023.

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Oh honey… the payment processor only had to report to the IRS if someone received more than $20 000, individuals have to report ALL income…

[simba6]

If your making money, you got to pay the piper.

[rainbowchaserecords]

Exactly... The problem is not every sale is a gain.  Many of us can take losses on sales and those sales are also included on that 1099-K, which only shows your gross receipts.

[rainbowchaserecords]

Not every sale is a gain (profit). Many of us take losses and those sales are included on that 1099-K, which only show gross receipts. Form generated or not, you pay taxes on a gain, not a loss.

[buyselljack2016]

and no one is disputing that.

We understand that this reporting income and then deducting to the point where no income is taxable is inconvenient and for some not understandable, but that is the law. When the new guy eliminates income tax the issue will go away, but there never was a $20,000 threshold😊 except as a misconception. (and a false tax loophole)(read it on the interweb so it must be true)(FALSE)

[luckythewinner]

I am selling only my own personal items from up to 50 years ago without any old receipts why did i get a 1099?

Because if they too the seller's word for it, every flipper would claim they were selling personal items and not get a 1099. 

What to do?

Account for the income on your tax return. If it was truly all personal items sold at a loss, there is a place for that (Form 1040, Additional Income and Adjustments to Income). It takes two entries on two lines. 

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

[rainbowchaserecords]

Yes, I understand that, but you pay taxes on a gain, not a loss. Not every sale is a gain and the lower threshold corralled all sales on that 1099-k and made it more complicated, which is what I'm trying to point out.

[janet9988]

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@rainbowchaserecords wrote:

Not every sale is a gain (profit). Many of us take losses and those sales are included on that 1099-K, which only show gross receipts. Form generated or not, you pay taxes on a gain, not a loss.

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Have you ever filed your taxes before?

Have you ever had deductions taken?

That is when you show/deduct losses or expenses.

[kensgiftshop]

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@rainbowchaserecords wrote:

LOL! You only had to report if you earned $20,000 or more in 2023.

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No, the payment processor had to report it.

You're required to report all income.

[kensgiftshop]

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@rainbowchaserecords wrote:

Exactly... The problem is not every sale is a gain.  Many of us can take losses on sales and those sales are also included on that 1099-K, which only shows your gross receipts.

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That's what your deductions are for when you file your taxes.

[kensgiftshop]

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@rainbowchaserecords wrote:

Yes, I understand that, but you pay taxes on a gain, not a loss. Not every sale is a gain and the lower threshold corralled all sales on that 1099-k and made it more complicated, which is what I'm trying to point out.

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Right, if you had no profit, you don't owe anything.

It's not that complicated.

You report all your income.

You deduct all your expenses.

[gone.c-33]

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@rainbowchaserecords wrote:

Not every sale is a gain (profit). Many of us take losses and those sales are included on that 1099-K, which only show gross receipts. Form generated or not, you pay taxes on a gain, not a loss.

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You’re supposed to report ALL income, whether it results in a loss or a profit. There is no minimum.

The $20 000 is/was at which amount payment processors are obligated to report to the IRS the sums they processed in your name.

If you’ve never declared income from your eBay sales and demonstrated whether you had made a profit or not on them, and looking at your past sales, you’d be in a world of hurt if you were to be audited.

[kennys-kollectibles]

Some one said see a tax expert.  That is good advice. 

I buy most of my stuff from garage sales and I have no reciepts to prove any of that but

I do keep good records of what I spend.   I am skeptical that even if you had kept reciepts from

50 years ago, that they would be valid use for proof if you sold today.  

I think there is a limit on the amount of years you actually deduct the cost of an item.  .....but  a 

tax expert would be able to tell you that.  Remember to the IRS income is income.  

[stainlessenginecovers]

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@rainbowchaserecords wrote:

Yes, I understand that, but you pay taxes on a gain, not a loss. Not every sale is a gain and the lower threshold corralled all sales on that 1099-k and made it more complicated, which is what I'm trying to point out.

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@rainbowchaserecords Sadly, apparently you do NOT understand a thing about taxes. 

The requirement is NOT:

Report ONLY if you have a profit.

The legal requirement and law is:

You have to REPORT the money- whether it's Profit or Not. 

Then, you do required deductions to possibly come up with a $0 profit and $0 tax owed.

But, ONLY after reporting and deducting.

NOT reporting is Tax Evasion and the Federal Prison System will have an 8'x8' for those that do NOT comply with the law.