Today I deleted about 120 listings-Done for the year already because of IRS 1099 2025 limits

[hiroprot]

Deleted 120 listings today. Just discovered that 2025 threshold for 1099’s drop to $2,500 (and just $600.00 in 2026) and zero guidance regarding can you document what you paid for items later sold and document profit only as income vs IRS assuming your gross sales are all income. Im done with EBay until 2026. Ebay and similar sites will wither away to nothing soon unless this stops.

[kensgiftshop]

@hiroprot 

is this another way to say that you don't report your Ebay income?

Doesn't matter if you stop selling, doesn't matter if you get a 1099K, you still report your income.

[kensgiftshop]

---

@hiroprot wrote:

Some folks not reading or understanding situation. I have zero problem reporting profit as income.Many items sold at a loss to raise money for huge medical expenses, i found some guidance regarding Schedule D but no clear guidance what forms to use to document accurate profit or losses vs them assuming net gross sales are  100 percent taxable, I will check out Schedule C as someone recommended, total rookie and little guidance anywhere on this. 

---

If you use one of the programs they have now days, it's pretty easy and it takes you step by step.

[redlinear]

FINALLY!!  It's happening!!  Woo Hoo!!!  Yay!!
   Back during the Covid days,  peoples that were not working their 9-5, decided to try to sell stuff they had laying around, on eBay. 
Thus we had a glutton, all at once, of millions more listings to compete against.
 Many did well enough on eBay (along with some unemployment $$, and a few govt programs), that they continued their new eBay venture. 
 Then, all of the sudden, they were doing More well than anticipated.  eBay income shut down some assistance, and unemployment ran out.  And they were presented with a 1099 and Tax SHOCK.
  Of course, they had always paid taxes, just never realized how much since it was taken out of their paycheck and they never saw that $$.  
  But now, instead of a whopping refund, they now OWE money.  Money in which they don't have because they were not prepared.
  Then we see the mentality of.... "I AIN'T SELLING ON EBAY NO MORE because...TAXES!!"

Whew, I didn't think it would take this long for the flies to start dropping.  But, I'm sure glad it has.

[mam98031]

---

@animal-house-8 wrote:

Don't worry about the IRS who right now who can hardly even function. In 40 years they have never asked for proof of COG they are not going to this year either.

---

@animal-house-8 

While this may be your personal experience, it is not the same for everyone.  Audits do happen.  I'm glad you have been able to avoid them so far.

[mam98031]

---

@hiroprot wrote:

Some folks not reading or understanding situation. I have zero problem reporting profit as income.Many items sold at a loss to raise money for huge medical expenses, i found some guidance regarding Schedule D but no clear guidance what forms to use to document accurate profit or losses vs them assuming net gross sales are  100 percent taxable, I will check out Schedule C as someone recommended, total rookie and little guidance anywhere on this. 

---

Well that isn't what you said in your opening post.  You will likely be just fine to continue to sell and help with those mounting bills.  Getting a 1099K changes nothing about what you said here.  It is just another form to deal with.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

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

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

https://www.kiplinger.com/taxes/irs-free-file

[krazzykats]

Once you deduct all expenses, is there really that much money left? 

I maybe have 20-30% for net income, maybe, after expenses, so any income taxes on it have never been much.  😊

Keep records!  If something comes in or goes out, money, or inventory, track it! 

You might be surprised your net isn't as much as you think.

[jerseyboymusic]

@hiroprot I'm super confused by your two posts so far on this thread

You said: "Some folks not reading or understanding situation. I have zero problem reporting profit as income. Many items sold at a loss to raise money for huge medical expenses, i found some guidance regarding Schedule D but no clear guidance what forms to use to document accurate profit or losses vs them assuming net gross sales are  100 percent taxable, I will check out Schedule C as someone recommended, total rookie and little guidance anywhere on this. "

BUT in your OP  you said "Deleted 120 listings today. Just discovered that 2025 threshold for 1099’s drop to $2,500 (and just $600.00 in 2026) and zero guidance regarding can you document what you paid for items later sold and document profit only as income vs IRS assuming your gross sales are all income. Im done with EBay until 2026. Ebay and similar sites will wither away to nothing soon unless this stops."

SOOOO it sounds like in your OP that you are looking for ways not to report your income. So, HOW have you been doing your taxes previously? Keep good records, like I assume you have always done

[hiroprot]

Excel self tracking that sent to a tax accountant in 2023, for 2024 I’ll try to figure out how and do it myself, sounds like Schedule C is what’s needed to document purchase costs on Schedule C vs gross sales on 1099? not knowing how this all works yet, otherwise Ive been losing 10-20 percent net since very low margins on sales to begin with. Until I know how it works not listing anything more. Just was asking how the reporting is supposed to work. 

[mam98031]

---

@hiroprot wrote:

Excel self tracking that sent to a tax accountant in 2023, for 2024 I’ll try to figure out how and do it myself, sounds like Schedule C is what’s needed to document purchase costs on Schedule C vs gross sales on 1099? not knowing how this all works yet, otherwise Ive been losing 10-20 percent net since very low margins on sales to begin with. Until I know how it works not listing anything more. Just was asking how the reporting is supposed to work. 

---

I think you are OVER thinking it and making it more complicated than it really is.  With that said, I gave you some links above so that you can educate yourself on the subject.

Keep in mind that whatever method of accounting that your CPA was using to report your income should be what you carry on with when you take over the accounting and tax reporting.  Meaning, if your CPA used the Cash Accounting method of the Accrual accounting method, stick with it as IRS does not like these types of major changes.  If you aren't sure what your CPA did, simply ask them as they can tell you.

I have used tax preparing programs for over 25 years.  Currently Turbo tax.  Excellent program and so easy to use by just answering a serious of questions.  The program will select all the documents that should be filled out and submitted to the IRS.  It really is so easy.

[hiroprot]

Especially in instances when I sold at a net loss to begin with, how to report..

[evry1nositswindy]

Then when you return in a year, you will be a new/returning seller, subject to 30 day holds of your funds. 

Once you look at a Schedule C, you will realize it isn't that difficult to get your net way down.  I have always reported my eBay income and have never had to pay additional taxes because our 'real' jobs cover the amount. 

[jerseyboymusic]

My wife does our taxes... I believe she uses Schedule C for self employment

[nobody*s_perfect]

---

@hiroprot wrote:

Especially in instances when I sold at a net loss to begin with, how to report..

---

Look. At. Schedule C. And its instructions.

You'll see that there is a single line entry for the total for everything you paid for all the stuff you sold.   You do not submit documentation separately for every item you sold. The chance that you will be audited at the depth that would require that documentation is roughly the same as the odds of getting hit by a meteor.

[meme6253]

What's stated in the forum, Stay's in the forum, L.O.L.

[luckythewinner]

---

@hiroprot wrote:

Some folks not reading or understanding situation. I have zero problem reporting profit as income.Many items sold at a loss to raise money for huge medical expenses, i found some guidance regarding Schedule D but no clear guidance what forms to use to document accurate profit or losses vs them assuming net gross sales are  100 percent taxable, I will check out Schedule C as someone recommended, total rookie and little guidance anywhere on this. 

---

In your original post you said you were stopping selling to avoid getting a 1099-K. 

What you are now claiming is "the situation" applies regardless of whether you get a 1099-K or not.

The IRS provides extensive guidance about how to account for online sales and 1099-K forms on your tax return.

https://www.irs.gov/businesses/understanding-your-form-1099-k

https://www.irs.gov/newsroom/form-1099-ks-issued-for-selling-goods-or-services

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

https://www.irs.gov/newsroom/form-1099-k-faqs-general-information

https://www.irs.gov/newsroom/form-1099-k-faqs-common-situations