Is the sell tax rule $20,000 and 200 transactions life accumulation or annual?

[jedisilky]

I received a 1099-K form from Ebay.  I investigated and learned if you sell $20,000 or go over 200 transactions you are required to report your Ebay income when filing taxes.  Are those limits meant to be annual?  The language of the rule is so vague.  I sold about $1,400 dollars worth of stuff in 2021 and had probably less than 30 buy/sell transactions in 2021.  So clearly I did not bust the rule limits in 2021 alone.  My 15-plus year old account did however get to a lifetime total of 215 transactions during 2021.  Am I forever now cursed with paying taxes for anything I sell on Ebay, simply because my long lived account finally crossed a certain (200) number of transactions?  This is so stupid.  I guess someone in my shoes just needs to open a new account every decade or so to get around this nonsense?  Am I missing something here? Or is it a mistake that Ebay processed and sent me a 1099-K? Thanks for any info.

[solidguitar1961]

It's suppose to be annually . Starting in 2022 anybody who sells over $600 gets a 1099 

[espresso_warehouse]

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@jedisilky wrote:

I received a 1099-K form from Ebay.  I investigated and learned if you sell $20,000 or go over 200 transactions you are required to report your Ebay income when filing taxes.  Are those limits meant to be annual?  The language of the rule is so vague.  I sold about $1,400 dollars worth of stuff in 2021 and had probably less than 30 buy/sell transactions in 2021.  So clearly I did not bust the rule limits in 2021 alone.  My 15-plus year old account did however get to a lifetime total of 215 transactions during 2021.  Am I forever now cursed with paying taxes for anything I sell on Ebay, simply because my long lived account finally crossed a certain (200) number of transactions?  This is so stupid.  I guess someone in my shoes just needs to open a new account every decade or so to get around this nonsense?  Am I missing something here? Or is it a mistake that Ebay processed and sent me a 1099-K? Thanks for any info.

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It's annual.

You should be reporting income anyway with few exceptions(f these are personal items you sold at a loss being the main one).

But if you got a 1099, time to claim it and line up your expenses and deductions. Shouldn't really be a big issue.

And don't worry, everyone will be getting them soon enough.

[kensgiftshop]

@jedisilky 

You're required to report any income, no matter what the amount is.

It's based on a calendar year.

Some states have a lower reporting limit then the federal, so you need to check to see what your states limit is.

[silverstatetreasureboxes]

@jedisilky 

No hun, it's probably the state you live in Missouri as your state's thresholds are probably lower than the annual 20k/ 200 that is still in place for this tax season only. Next year is lower at $600.

Let the games begin!

[janet9988]

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@jedisilky wrote:

I received a 1099-K form from Ebay.  I investigated and learned if you sell $20,000 or go over 200 transactions you are required to report your Ebay income when filing taxes.  Are those limits meant to be annual?  The language of the rule is so vague.  I sold about $1,400 dollars worth of stuff in 2021 and had probably less than 30 buy/sell transactions in 2021.  So clearly I did not bust the rule limits in 2021 alone.  My 15-plus year old account did however get to a lifetime total of 215 transactions during 2021.  Am I forever now cursed with paying taxes for anything I sell on Ebay, simply because my long lived account finally crossed a certain (200) number of transactions?  This is so stupid.  I guess someone in my shoes just needs to open a new account every decade or so to get around this nonsense?  Am I missing something here? Or is it a mistake that Ebay processed and sent me a 1099-K? Thanks for any info.

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That is not what is said... It was generally stated that ebay would send out a 1099 if 200 transactions//// 20k . 

Just because you do not get a 1099 does not mean you don't have to report the income. You still need to do so every year.

[collectfest]

Yes,

You are missing something. If I open an account today and have 1 sale for 19,000 and never sell again, I OWE TAXES.

I would see a tax person at least once to be clear on your situation.

Where are what did u investigate that gave you the idea of this 20K, 200 transaction rule?

[espresso_warehouse]

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@collectfest wrote:

Yes,

You are missing something. If I open an account today and have 1 sale for 19,000 and never sell again, I OWE TAXES.

I would see a tax person at least once to be clear on your situation.

Where are what did u investigate that gave you the idea of this 20K, 200 transaction rule?

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False. You may or may not 'owe taxes'. It all hinges on your expenses. If you sold everything at a loss nothing is owed.

The distinction needs to be made. Talk to a CPA.

[collectfest]

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@espresso_warehouse wrote:

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@collectfest wrote:

Yes,

You are missing something. If I open an account today and have 1 sale for 19,000 and never sell again, I OWE TAXES.

I would see a tax person at least once to be clear on your situation.

Where are what did u investigate that gave you the idea of this 20K, 200 transaction rule?

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False. You may or may not 'owe taxes'. It all hinges on your expenses. If you sold everything at a loss nothing is owed.

The distinction needs to be made. Talk to a CPA.

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Thats what I said. I am not going to wright a book. Thats why you have to see a CPA. Like I SAID. No kidding expenses and a whole lot of other things are at play. Splitting hairs. SEE A CPA. The post from OP is not a law or rule. Period. 20K or 200 means nothing.

[jedisilky]

I got a 1099 so that's besides the point.  Doesn't sound like you fully read.  The general question is about the 20k/200 transaction rule.  Is that supposed to be annual or a lifetime accumulation of the account?  I have 216 transactions with my 20 year old account (around 30 this year) with $1400 in sales this year.  Probably 90% of my transactions on the account are buys. 

[jedisilky]

I'm not so sure you would owe taxes on that one sale.  https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L...

Note: "If you make more than $20,000 in gross sales and have 200 or more transactions on eBay, you should receive a 1099-K form reporting this income to the IRS."

I see this $20,000 / 200 transaction notation in many places, including Ebay info.  I'm starting to see it may have nothing to do with annual totals but instead the lifetime accumulation of your account. 

[coolections]

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@jedisilky wrote:

I got a 1099 with $1400 in sales this year.  

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Whatever the 1099 says. If you sold $1400 you will need to claim $1400. Yes, once a year every year forever.

[espresso_warehouse]

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@collectfest wrote:

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@espresso_warehouse wrote:

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@collectfest wrote:

Yes,

You are missing something. If I open an account today and have 1 sale for 19,000 and never sell again, I OWE TAXES.

I would see a tax person at least once to be clear on your situation.

Where are what did u investigate that gave you the idea of this 20K, 200 transaction rule?

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False. You may or may not 'owe taxes'. It all hinges on your expenses. If you sold everything at a loss nothing is owed.

The distinction needs to be made. Talk to a CPA.

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Thats what I said. I am not going to wright a book. Thats why you have to see a CPA. Like I SAID. No kidding expenses and a whole lot of other things are at play. Splitting hairs. SEE A CPA. The post from OP is not a law or rule. Period. 20K or 200 means nothing.

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No. That is not what you said. I understand ego here tends to trump facts but we shouldn't be fear mongering.

[wildpitchsports]

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@espresso_warehouse wrote:

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@jedisilky wrote:

And don't worry, everyone will be getting them soon enough.

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They sure will.

[espresso_warehouse]

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@jedisilky wrote:

I got a 1099 so that's besides the point.  Doesn't sound like you fully read.  The general question is about the 20k/200 transaction rule.  Is that supposed to be annual or a lifetime accumulation of the account?  I have 216 transactions with my 20 year old account (around 30 this year) with $1400 in sales this year.  Probably 90% of my transactions on the account are buys. 

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At least a dozen people have pointed out this is yearly. If you got a 1099, include it in your tax return.