eBay

modulok! · ‎01-04-2022

Buyer bought and paid for an item on 12/31/21. Item was shipped on 1/3/22. Do I include the entire purchase on my 2021 taxes (I assume yes)? Since the item shipped on 1/3/22, do I include what I paid the USPS for the shipping label in my 2022 taxes and not my 2021 taxes? I'm not very good at explaining this so hopefully it is not confusing anybody.

luckythewinner · ‎01-04-2022

@modulok! wrote:
Buyer bought and paid for an item on 12/31/21. Item was shipped on 1/3/22. Do I include the entire purchase on my 2021 taxes (I assume yes)? Since the item shipped on 1/3/22, do I include what I paid the USPS for the shipping label in my 2022 taxes and not my 2021 taxes? I'm not very good at explaining this so hopefully it is not confusing anybody.

I account using a cash basis.

If the buyer paid in 2021, that is a 2021 payment for me.

If I paid for the shipping label in 2022, it is a 2022 expense for me.

These are two completely separate transactions that happened on different days.

nobody*s_perfect · ‎01-04-2022

I understand what you're asking. I would include the postage in 2021 only if you purchased the label right away, on 12/31. If you purchased postage during January, then I'd include it as an expense in my 2022 return because that's when the money was spent.

jayjaspersgarage · ‎01-04-2022

Just as your last week of December work is your First week of January paycheck the same applies to WHEN the payout from ebay is deposited into your checking account. The tax evaders last real chance to avoid reporting was for sales the week before that non-essential materialistic holiday that falls on 12/25 each year. That puts your end of the year sales between x-mas and 12/31 into the following 1099K reporting year of 2022.

dq3141 · ‎01-04-2022

@jayjaspersgarage wrote:
Just as your last week of December work is your First week of January paycheck the same applies to WHEN the payout from ebay is deposited into your checking account. The tax evaders last real chance to avoid reporting was for sales the week before that non-essential materialistic holiday that falls on 12/25 each year. That puts your end of the year sales between x-mas and 12/31 into the following 1099K reporting year of 2022.

I was getting payouts within 2 days of sale. Christmas wasn’t the “cutoff”, at least for me.

slippinjimmy · ‎01-04-2022

@jayjaspersgarage wrote:
Just as your last week of December work is your First week of January paycheck the same applies to WHEN the payout from ebay is deposited into your checking account. The tax evaders last real chance to avoid reporting was for sales the week before that non-essential materialistic holiday that falls on 12/25 each year. That puts your end of the year sales between x-mas and 12/31 into the following 1099K reporting year of 2022.

Well eBay are not going to do it that way, they will report ANY paid for sale where the buyer made their payment in 2021 as part of the 2021 1099K. When you run a transaction report any sale paid for in 2021 will be included in the 2021 numbers.

Of course if you have always reported sales based on the date it hits your bank account you might be best to continue that process. The IRS looks for consistency so whatever way you calculate is the way you should always report.

Paranoia strikes deep
Into your life it will creep

grasscarp · ‎01-04-2022

This year, 2022, I would simply use my eBay's "sales report" (sales, taxes, and selling expenses incurred thru eBay) covering all of 2021 to file my taxes for last year. Then next year I will use the "sales report" for all of 2022 when I file taxes in 2023. I like to keep it simple. Something that may barely miss the end of a year will show up at the beginning of the next year. No problem!!

dq3141 · ‎01-04-2022

@slippinjimmy wrote:
@jayjaspersgarage wrote:
Just as your last week of December work is your First week of January paycheck the same applies to WHEN the payout from ebay is deposited into your checking account. The tax evaders last real chance to avoid reporting was for sales the week before that non-essential materialistic holiday that falls on 12/25 each year. That puts your end of the year sales between x-mas and 12/31 into the following 1099K reporting year of 2022.
Well eBay are not going to do it that way, they will report ANY paid for sale where the buyer made their payment in 2021 as part of the 2021 1099K. When you run a transaction report any sale paid for in 2021 will be included in the 2021 numbers.

Of course if you have always reported sales based on the date it hits your bank account you might be best to continue that process. The IRS looks for consistency so whatever way you calculate is the way you should always report.

I think this issue has been discussed multiple times recently, and IIRC, the buyer’s date of payment isn’t what determines which year it shows up on the 1099. But I could be wrong.

superfectabox · ‎01-04-2022

That sales report is garbage (it's just estimates).....it doesn't factor returns at all and is VERY, VERY inaccurate.

The proper way to determine the proper numbers for taxes is to download all 12 monthly statements and all 12 invoices (one details your transactions and usps shipping, the other your fees/returns & ups/fedex shipping) and then use them in conjunction with each other to determine the proper costs.

To handle returns (or purchase cancellations) you need both as one only shows the items cost that was refunded while the other shows the fee credits which were also refunded...nowhere else are he two combined and they need to be added together for the proper deduction.

If you don't do this (and don't have your own logs/tracking/books) then you will end up being highly out of step with the real numbers.

buyselljack2016 · ‎01-04-2022

Seems this was hashed out months ago.

Well not the postage. Seems that as nobodys posted, if purchase in 2021 I would think it is a 2021 expense.

seems eBay fvf was charged as an expense in 2021

Now where another thing is questionable is where does the buyer payment go. You won't get it until 2022, so it's included in the 2022 1099-K, is it not?

shado-x · ‎01-04-2022

Item was shipped on 1/3/22. Do I include the entire purchase on my 2021 taxes (I assume yes)? Since the item shipped on 1/3/22, do I include what I paid the USPS for the shipping label in my 2022 taxes and not my 2021 taxes?

eBay will have a December Statement based on the dates for your gross income vs expenses and fees. You can also generate a report in your seller hub under "Payments"----go by that.