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?

[mam98031]

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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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Of course.  That is part of doing business.  That should not come as a surprise to anyone that has sold stuff before.  Somethings you will make more profit on and other things you are lucky to break even.  

[mam98031]

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...

[fbusoni]

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@fr.lot2012 wrote:

many are saying go to a tax pro, imagine a seller (like many in the nation) who never filed and now meeting the soon to be 600 threshold--that means they made way less than 600 profit, an accountant will charge  more than the profit made on the stuff

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Well, one can emigrate to a country like North Korea, where people don't have such problems.  

Nor do they have accountants in North Korea.

A win-win. 

[janet9988]

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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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So I don't have to report my income as long as  I earn under 20k???? Sweet.  lol

[johnrj1226]

Llesson # 2.   your total net profit for the  year is deductible. when you play the came  right

Lesson #3.  -   don't sell anything for a loss,  Gotta' know ALL  your selling costs  before  listing

[monroe67]

"$20k for 2023, $5k for 2024, $2.5k for 2025 and $600 for 2026. As I stated, we are not all power-sellers and are being taxed like we are because of lower thresholds. Can you understand that?"

So much misunderstanding.  

Those dollar amounts and years you listed are/were/will be the thresholds at which eBay is required to issue
Form 1099-K to sellers on their platform.  

What eBay has to report has nothing to do with how much you or any eBay seller will be taxed (by the IRS) on his/her income.  They are two separate actions.  

You may not understand that right away, but it is true.  

In another post, I included a link to "What to Do With Form 1099-K", a publication from the IRS.  Here's a quote from the second paragraph of that document:

[Start Quote]:

Even if you don't get a Form 1099-K, if you received payments for goods, services or property, you must report your income. This includes payments you receive in cash, property, goods, digital assets or foreign sources or assets.

[End Quote]

[rainbowchaserecords]

And what I'm saying is the IRS lowered the threshold for reporting for 2024 from $20,000. I understand you must report your income if you don't get a Form 1099-K.  What I'm also saying is, we are not all retail power-sellers and all transactions that are on that 1099 are not all gains.

[jonathanbrightlight]

That's irrelevant.  A 1099K is just a form.  It does not decide what you are taxed on.  It's just a form.

[mam98031]

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@rainbowchaserecords wrote:

And what I'm saying is the IRS lowered the threshold for reporting for 2024 from $20,000. I understand you must report your income if you don't get a Form 1099-K.  What I'm also saying is, we are not all retail power-sellers and all transactions that are on that 1099 are not all gains.

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@rainbowchaserecords 

That all comes out in the numbers reported.  Heck sellers that are running businesses don't make a profit on everything either.  You don't have to be selling personal stuff for that to happen.

[johnrj1226]

Don't  try to get a job at H & R block -u need to read and understand what the IRS has to  say. in  simple black and white print - read this link

https://www.irs.gov/filing/taxable-income

There are all types  of 1099s  with  different thresholds depending on suffix, e.g.  1099 - INT for interest - got  one from  my bank for a minimal amount - less that  2 digits.

Here is what the IRS says about a 1099K - read it and weep.

  https://www.irs.gov/businesses/understanding-your-form-1099-K

PS:  the IRS is the judge and  jury on income tax matters -  not info  one hears at the water cooler or from your best

friend.   They  have been known to audit by random selection just to keep folks on their toes.  Had one of those once upon a time - passed the  test and got an atta'boy - but they had to find one minor issue to make you almost  pee your  pants - something about I should  have  reported an amount on another line.

[lux.ra_14]

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@rainbowchaserecords wrote: What I'm also saying is, we are not all retail power-sellers and all transactions that are on that 1099 are not all gains.

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The 1099 is a form.

You're a human.

Human takes form, figures profit or loss, files taxes accordingly.

That's it.

[lonebuck-books]

It may be ridiculous but it is the law.  It isn't eBay's fault, it is the congress critters we elected that did this.  Whether it is fair or not is irrelevant to the IRS.  In your case, you really need to talk to a tax pro.  You are asking for trouble if you don't .  3000 prior sales is a major red flag.

[lonebuck-books]

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@rainbowchaserecords wrote:

What do you mean "That's their own fault for not reporting their income like they were supposed to be doing"? Hey, the threshold used to be $20,000 in 2023 and prior years.  

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The $20,000 threshold was for the 1099 form requirement, not the reporting and tax payment on income requirement.  You have always been required to report your profits regardless of the 1099 requirement.  So yes, if the seller made $601 and didn't report it because they didn't get a 1099 for over $20,000 in sales, that is their own fault.    There used to be a $400 'grace' amount (which I believe was upped to $600) for this sort of thing where if you made under $400 you didn't have to report it but once you crossed over that threshold, you were required to report it.  And that grace amount was all of the misc. income added up, not for each source.  So if for instance you made $300 on eBay and $350 on Amazon, you would have to report it because combined it broke the $400 (or $600) threshold.

[deltilogical]

You are being robbed!  You must obey or be subject to horrible acts of violence.    All taxation is theft, unless you gave it up by choice.  

[lonebuck-books]

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@silverstatetreasureboxes wrote:

@monroe67 

The AARP tax preparers must take a IRS test and pass 100% before tax season ( at least in my area).

     And yuck I had to write out a check for the IRS today!

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Why today?  I don't give them any money until I absolutely have to.  Certainly not in February! (Quarterly estimates exempted of course).