Taxes in Sold items at the end of the year

[dacoop1]

HI,

Just curious as to if the government is going tax all sales over $600 or will it be safe this year?

Thanks

dacoop1

[inhawaii]

The government is taxing all sales over AND under $600.

[albertabrightalberta]

*Sigh*

Nothing in the laws have changed. 

EVERY seller is expected to claim their sales, whether there's a 1099K form or not. 

The only thing that changed (so far) for the 2023 year is that the 1099K FORM wasn't sent for sales of $600. Again, that doesn't mean you aren't expected to claim the income and if appropriate, deduct your costs to get to the amount of profit that is taxable.

[kensgiftshop]

You reporting your income hasn't changed, you're supposed to be reporting all your income, doesn't matter the amount.

[chapeau-noir]

Don't forget to sacrifice thousands of dollars of revenue plus tax breaks so you stay under $600.

[murph1727]

The government does not tax your "sales"---it taxes your net profits (sales-expenses).

[ebooksdiva]

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@dacoop1 wrote:

HI,

Just curious as to if the government is going tax all sales over $600 or will it be safe this year?

Thanks

dacoop1

---

What exactly do you mean by "safe this year"? Safe from what? 
Whatever earnings you made selling on eBay you are required by federal laws to declare them on your income tax. 

[heckofagame]

Looks like the IRS may be getting another call.

[dbfolks166mt]

     As others mentioned you are supposed to be reporting the income regardless. If you are asking will you be getting a 1099-K from eBay if you exceed $600 in funds processed through the third party financial processor there are multiple pieces to that. 

1.  Not sure what state you live in but a number of states already have 1099-K issuance requirements in place. I am in Virginia and the issuance threshold has been $600 since 2020. Nobody knows if any other states will pass their own laws but it would not surprise me given the inability of the federal government to get anything finalized. 

2. As far as what the federal government does with regards to the 1099-K issuance threshold NOBODY can give you a definite answer at this point in time and in fact may not be able to until November/December. 

     Realize that this is NOT specific to eBay but covers any third part financial processor that you receive funds from. So it is possible you could get a 1099-K from not only eBay but PayPal, Venmo, Stripe, Google Pay............  

[az93]

All this fuss and bother over taxes. Do you drill the store cashier about taxes? This is America and just assume everything is taxed. Report ebay earnings and expenses like the law requires and stop fretting.

[dacoop1]

I do  believe if you dont own a business and use Ebay as a way to sell your items you are not  required by law for the sale. I dont have a tax id, it use to be sale of up to 200 items or 20,000 required reporting until the new tax law went into effect.  But that  got put on hold.  How many  times is an item allowed to be taxed?  Then you got if you can prove you sold it for a loss theres no tax to report.  Too much red tape. 

[dacoop1]

By “safe this year”   I am referring to Ebays old limits before a tax consequence  ( 200 items or $20,000.  

[mtgraves7984]

How many  times is an item allowed to be taxed?

@dacoop1 

Regarding sales tax, I suppose it's subject to be taxed every time it's sold. For income tax (to you), report it just the once.

[asset_liquidators]

There have ALWAYS been tax consequences for ANY amount of sales. Doesn't matter if it was $100 or $1,000,000. You thought anything under $20,000 was "tax free"? You better hope you don't get audited for all those years you were evading taxes.

[luckythewinner]

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@dacoop1 wrote:

By “safe this year”   I am referring to Ebays old limits before a tax consequence  ( 200 items or $20,000.  

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eBay does have the authority to establish any limits regarding tax consequences. 

Congress and the IRS are the only ones with the power to do that.