Sales Reported to IRS

[mysterytree]

Is Ebay going to report  sales income to the IRS? I have heard that anything over $600.00 would be reported and the sellers will get a income form to add to their yearly income taxes. Does anyone know about this or is it just hear say?

[pburn]

tyler@ebay 

velvet@ebay 

jasmen@ebay 

Please provide clarification on which eBay statement regarding the mailing of 1099-K forms to qualified sellers is accurate.

Thanks!

[velvet@ebay]

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@pburn wrote:

tyler@ebay 

velvet@ebay 

jasmen@ebay 

Please provide clarification on which eBay statement regarding the mailing of 1099-K forms to qualified sellers is accurate.

Thanks!

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Hey @pburn! We're looking into the different statements to see which is accurate, but in the meantime members can make sure their preferences are set to receive the form via their preferred method in Seller Hub and you can see the screen shot below for an example of where to go. 

[readabouthorses]

velvet@ebay 

If a seller opts for the online and mail choice do you know what mailing address they would be using? My mailing address is a PO Box but Managed Payments forced me to change my registration address from PO Box to my physical address which does not receive any mail.

[pburn]

velvet@ebay 

Thanks for taking the time to check on this. Please tag me in this thread again when you have a clarification or confirmation. 

Happy New Year!

[downunder-61]

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@readabouthorses wrote:

velvet@ebay 

If a seller opts for the online and mail choice do you know what mailing address they would be using? My mailing address is a PO Box but Managed Payments forced me to change my registration address from PO Box to my physical address which does not receive any mail.

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Change it back to the PO Box now you have been verified, they only needed to match it to your bank accounts address

[readabouthorses]

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@downunder-61 wrote:

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@readabouthorses wrote:

velvet@ebay 

If a seller opts for the online and mail choice do you know what mailing address they would be using? My mailing address is a PO Box but Managed Payments forced me to change my registration address from PO Box to my physical address which does not receive any mail.

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Change it back to the PO Box now you have been verified, they only needed to match it to your bank accounts address

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Thanks. My bank account's address was my PO Box and they made me change it anyway.  I'm not expecting a 1099 this year but probably will next year and wanted to get it straight while I'm thinking about it.

[velvet@ebay]

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@readabouthorses wrote:

velvet@ebay 

If a seller opts for the online and mail choice do you know what mailing address they would be using? My mailing address is a PO Box but Managed Payments forced me to change my registration address from PO Box to my physical address which does not receive any mail.

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That's a good question @readabouthorses! I'm reaching out to the Payments team to get clarification on which address is used as well. I'll follow-up with that, along with what we find out about the two statements @pburn, when I have news to share. Thank you both and Happy New Year! 😊

[creativecrisis]

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@chapeau-noir wrote:

Came here for the addled thinking, left satisfied.

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Moderators asleep at the wheel. 😒

[richard454]

FWIW my wife spent 30 years with the IRS.

"In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable,"

Now you will get a 1099K for over $600- and have to prove to the tax man you have used this stuff personally and selling at a loss.

That's a hassle for a truly a casual seller. But if you go to other garage sales - but it cheap and resell it on eBay for a profit- well you need to pay the tax.

Another regulation that will cost the legit person money- and run off other legit casual sellers as they don't want to mess with it.

Those cheating the system- will just move on to another venue- Facebook Marketplace?

[richard454]

There is a statue of limitations- Federal is 7 years- States vary- I know California is one of the longest at 20 years!!!

[richard454]

My garage IS an airplane hanger!!!

[prim8pal]

This is correct and a big problem for someone selling their used personal items.  The 1099 will show revenue, but there is nowhere on the tax forms where you can deduct the original cost of the item or any selling expenses if you are not in business or are taking the standard deduction.  I have some used camera equipment from my hobby that is worth more than $600, but I am not going to offer it on eBay because I don't want the hassle of the IRS thinking I am making a profit from the sales.

[farmalljr]

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@richard454 wrote:

There is a statue of limitations- Federal is 7 years- States vary- I know California is one of the longest at 20 years!!!

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Seriously. What did your wife do at the IRS? Because it was not anything to do with taxes.. You keep talking about her job there like she knows a lot. 

It was not that long ago, we were presented an article over the statue of limitations for tax audits. The IRS can go back as far as they want to, there is NO statue of limitations IF the IRS wants to go clear back to your birth. All they need is a reason (and not reporting IS a good enough reason). 

Instead of constantly spreading fake news, why not find another hobby?

[buyselljack2016]

Getting a "mailed copy" will not be a concern for me.

I can print out a copy of most any form that I need to put in my "tax records" folder.

[readabouthorses]

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@buyselljack2016 wrote:

Getting a "mailed copy" will not be a concern for me.

I can print out a copy of most any form that I need to put in my "tax records" folder.

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But if you don't go in and make the change it will mail a copy due to the default it selects.