Selling in 2022

[mr4wrestle]

Are there any tax experts on here? I imagine there are a lot of part time sellers on eBay like me who have a ton of stuff around the house and in the garage that they’ve had for 10, 20, 30 years or more that they list on eBay to sell. So in 2022, if I go full out and say gross $15,000 on eBay, but I’m just about breaking even on this stuff, how do I rectify that with the IRS? Am I supposed to have receipts that show that I bought something for $20 in 1998 and I sold it for $20 in 2022 ?  If anyone is on here that has income tax knowledge please feel free to comment. Thank you

[katzrul15]

@mr4wrestle 

See this thread - and you really need to chat with a CPA on how to determine what the FMV was on an older item (whether purchased by you, gifted to you, inherited by you, found by the cat, etc)

2022 IRS Changes - selling old items with no recei... - Page 3 - The eBay Community

[reallynicestamps]

but I’m just about breaking even on this stuff,

Did you buy it for resale and then not try to sell it for over a decade?

Did you buy it for use (including decorative or hobby use)?

The purchase price is important if you are actively buying for resale.

But if you are selling personal possessions you don't have to prove the original cost.

I buy certain comic books that I read for the story, but when the trade paperback or hardcover comes out, I sell them on to other collectors/fen who prefer the comics.

I consider the value of the used/read books to be $0.00 even though they actually cost me $3.00 a volume.

[wildpitchsports]

Well, this isn't tax advice and I sure none of us have receipts from 1998 but I think for items that old they would depreciate and sell for less than you paid. That $15K number of things around the house might raise a flag. As long as you document your sales and keep some sort of log for estimated purchase price to match up with sales you should be okay. There's a lot of sellers in that boat too.

[stackers_xag]

Just keep your ears and eyes open. When congress returns from their holiday vacation a lot of changes are going to be made with this 2022 tax 1099 stuff. 

My goodness. you haven't even gotten thru the 2021 tax season yet and you're already worried about what you'll be taxed for in 2023 for the 2022 tax year.

Go take a nap and get up new year January 1, 2023. Then you won't owe any taxes......LOL

[mr4wrestle]

Also .... I have heard that eBay will send the tax form out with the full payment including what was collected for postage. So how will that be rectified? If you get a 1099 for $15,000 maybe $1000 of that was for postage. So you will have to prove to the IRS how much postage you paid to mail out all the items you sold or else pay tax on it? 

[this*old*attic]

You mean, like, the 103 vintage wrestling newspapers you sold recently at $12.50 each for sales totaling $1300?

[evry1nositswindy]

You will fill out a Schedule C.  Take  a look at it online to see the different expenses, fees, etc that can be used as deductions to the gross reported.  Honestly it isn't that complicated.

[Anonymous]

NO you do not need a receipt for something you bought several years ago, or even a year ago. You only need receipts for the current tax year. Where people are getting that you need to prove the item created less profit than it's worth is pointless, how does one prove that anyhow. Value is all an opinion and the only thing the government cares about is income/profit. So to answer your question, from here on out you will need to keep track of all expenses related to selling (even if you are not a business) and the income you bring in. At the end of the year, any PROFIT (Income minus expenses) over $600.00 will be taxed. That's pretty much it in a nutshell. Before (if you were not a business) then the limit was $20,000 profit before you were taxed. Big difference isn't it. Of course many on here will say what I just told you is wrong, but it is not.

[winterpalace25]

What you just told them is wrong.

[this*old*attic]

@Anonymous 

OMG, how can that even make sense in your head?

You were ALWAYS supposed to declare the income, only the reporting laws have changed (honor system didn’t work).

A 1099 is really no different than the W2 a traditional employee gets from their workplace.

It actually makes sense to you that the guy at McDonald’s has to file taxes but Joe Ebay seller doesn’t, yet both take in the same amount of money?

[slippinjimmy]

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@Anonymous wrote:

NO you do not need a receipt for something you bought several years ago, or even a year ago. You only need receipts for the current tax year. Where people are getting that you need to prove the item created less profit than it's worth is pointless, how does one prove that anyhow. Value is all an opinion and the only thing the government cares about is income/profit. So to answer your question, from here on out you will need to keep track of all expenses related to selling (even if you are not a business) and the income you bring in. At the end of the year, any PROFIT (Income minus expenses) over $600.00 will be taxed. That's pretty much it in a nutshell. Before (if you were not a business) then the limit was $20,000 profit before you were taxed. Big difference isn't it. Of course many on here will say what I just told you is wrong, but it is not.

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ALL really bad advice, while there might be a tiny kernel of fact buried in there 99% of it would lead people astray and potentially lead to big problems.

[7606dennis · Accepted solution]

I would recommend consulting a tax professional rather than relying on a advice from a discussion board.

Of course, there are two parts to determining how much tax is owed in income tax.  One is income and the other is expenses.  A professional tax advisor will be able to help you to determine what, if any, expenses may be deducted.

[mr4wrestle]

Thank you for pointing out this other thread. It was very helpful.

[Anonymous]

Then you can call my accountant and take it up with her.