New 1099: What if I don't have receipts?

[chiachadly]

I am in a financial bind and have been selling stuff I own -- coins, comic books, video games, band merch, toys. It is all stuff I have owned personally, bought for my own personal use, in some cases 25+ years ago. 

I have never received anywhere near the 20K threshold in total sales. However, the new $600 threshold fills me with anxiety. I have no idea how to prove how much I bought my 20 year old Sega Genesis and all my games for! Do I owe the full tax burden when I get a 1099?  If not, what do I do?

This is crazy. I can't find a single article or news story that details how this will actually work for people like me. It's all "We closed the loophole and stopped the rich!" and  people say things like "Just keep good records! Derp Derp!". 

Ok, but I was alive before the Internet and digital payments were a thing. We used to buy things in cash from stores -- stores that gave out thermal paper receipts with no digital record -- and we didn't think there would come a time when the IRS would hunt us down for having to sell our Ninja Turtles toys.

[katzrul15]

If you look at post #10 - lace has linked you to IRS publication on FMV.  I am pretty certain I am right, but again - you need to consult a tax advisor as I stated in my 1st post UP thread.

[wildpitchsports]

Your situation will be mirrored by millions of people come next year for 2022 online sales. 

Hobby deductions were taken away by Trump in 2018 and Biden finished off the reseller gig for online sellers with this new trigger for the 1099K starting this tax year.

Consider yourself lucky you were aware. I guess google Original MSRP and make a spreadsheet. For more popular items that information on original MSRP should be available online now.

You'd be surprised what some of that old "ninja turtles" stuff goes for. Might have to pay tax on your childhood collection that you are now selling because you are in a bind.

Isn't that just spectacular.

[chiachadly]

I hear you. I feel the same way. I bet a lot of people will find out in 2023 just how **bleep**ty this is.

[chiachadly]

Asking my friends who are CPAs, it seems even they aren't sure. But, I hope you're right and this is simple and people don't have to pay taxes for selling personal property. 

[chiachadly]

You may be right and you make a good case. But, I guess this ends my selling my stuff online either way. I am not hiring a CPA.  That is, unless this is reversed.

[wildpitchsports]

Let's hope they take that outrage out at their local officials and at the ballot box. The impact of this will be absolutely widespread beyond the scope and probably will impact more than we even know sadly.

[wildpitchsports]

😥

Consider yourself lucky you found out early enough in the year!

[dq3141]

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@mjjb_56 wrote:

DQ,

Ebay is working with Congress concerning this.

Link:

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

And what other issue do you state is wrong in my Post????????

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eBay is lobbying Congress; they are not "working with" Congress". Surely you understand the difference. I see no indication that Congress has any interest in changing the threshold.

And I see that you have corrected your error about this being part of the BBB bill, which hasn't passed, and probably won't. The $600 threshold is already the law.

[kensgiftshop]

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@chiachadly wrote:

I have never received anywhere near the 20K threshold in total sales. However, the new $600 threshold fills me with anxiety.

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If you had been reporting your income all along, like you were supposed to be doing, , it wouldn't be a big deal.

[richardwillardcollection]

Look, all of us like you are worried. Do not create a panic to what amounts to this; Are you able at this time to sell things on the web? The answer is yes, goooood answer. When you walk up to the computer and it wont let you sell nothing, when that day comes, we find something, some other way to occupy ourselves. Also, you can add up all your yearly taxable income and file your taxes if you want to. Its not worth worrying over. Until then, sell like crazy, and use the promotional eBay gimmicks, pay them more to sell your stuff, and you wont owe so much tax. Before you add anything to this, read all the post on the topic. Be happy selling! Good luck selling!

[chiachadly]

Uhhh... I think it is normal to worry about a potential tax burden.  I need the money and don't need stuff anymore. It isn't about entertainment.

[chiachadly]

Uh, no. That is false. You sound like a spokesperson for the IRS.

You don't have to report the selling of your personal stuff. I'm not buying and selling. That was the purpose of the 20K threshold -- to separate private sellers and people opening a business to make income. The 1099 complicates that because now it forces me to prove this is my stuff...

You know what, you didn't read my post. Why am I replying? Thanks.

[chiachadly]

Indeed. Look at these people in the replies pretending this changes nothing. What a bunch of apes.

[wildpitchsports]

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@chiachadly wrote:

Indeed. Look at these people in the replies pretending this changes nothing. 

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It changes nothing for them because they were already getting 1099K's because they were probably over the 200/20K thresholds for transactions. They are under some impression that their sales weren't where they wanted them to be due to "tax evaders" and eliminating them will remove competition. That's not socialist much but that's another issue. Like that person selling the same picture or trinket they are selling for $15 , some newer seller sells for $12. That's more due to what the market will handle more than anything. That appears to be the rationale behind these kind of statements.

It does change everything for the vast majority of sellers on eBay, eTsy, CashApp & anywhere else. Millions of people will no longer sell and therefore will no longer buy in my opinion.

[chiachadly]

Yep, I can no longer sell. I have no idea how to navigate the taxes and I am not fond of paying the IRS a bunch of money they aren't legally owed.