WHAT HAPPENED TO THE $5000 THRESHOLD FOR 1099-K

[pfaltz2004]

IS IT SET IN STONE FOR THE $600 THRESHOLD (1099-K)?

[inhawaii]

You don't like to pay taxes and you're done selling on ebay.

Thanks for letting us know.

[gone.c-33 · Accepted solution]

You do realize you are also supposed to report income/profit made at flea markets? 

If I was an IRS agent with a quota of people needing investigating to meet, I think online marketplace forums would be my first place to look…

[chapeau-noir]

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[ebooksdiva]

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@pfaltz2004 wrote:

I'LL SELL ELSEWHERE WITH NO PROBLEMS, NO IRS.........................THIS WAS JUST A HOBBY HAVING FUN........FUN IS OVER WITH EBAY

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So you're basically stating in a public form that you don't declare your sales earnings to the IRS.

You may want to check with your state to find out what there reporting threshold is. 

[powell-collectibles]

I have a really cool corporate job. I enjoy it – I could call it fun. Do I still need to pay taxes?  You’re selling seems to be just a little bit more than selling junk – seems like you are trying to make money. If that is the case, and you are succeeding, seems reasonable for you to pay your fair share of taxes. If you are just selling off stuff that you had in your personal collection, and that you are losing money on, You can offset that income with those previous acquisition. Garage sales stuff doesn’t mean that you owe on taxes, even if you get a tax doc from eBay.

[pfaltz2004]

THANK YOU, JUST SELLING OFF STUFF I HAD IN MY COLLECTION FROM YARD SALES..........AND MY DAD'S

[chapeau-noir]

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@pfaltz2004 wrote:

THANK YOU, JUST SELLING OFF STUFF I HAD IN MY COLLECTION FROM YARD SALES..........AND MY DAD'S

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It's really unlikely that you're going to owe any taxes on any of that, and you'll definitely get better value selling it online than in person, just because of a much wider audience with people who collect those items, but the days of being able to sell on a multinational marketplace AND garage-sale style tax-free are long gone.

[powell-collectibles]

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@pfaltz2004 wrote:

THANK YOU, JUST SELLING OFF STUFF I HAD IN MY COLLECTION FROM YARD SALES..........AND MY DAD'S

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If you use something like TurboTax, they can actually take you through what needs to be done. You can mark yourself as something like a garage sale seller, and you shouldn’t owe any additional taxes because of your sales.

[dbfolks166mt]

THANK YOU, JUST SELLING OFF STUFF I HAD IN MY COLLECTION FROM YARD SALES..........AND MY DAD'S

     You and your dad must have had one heck of a collection. 

[powell-collectibles]

Guy is making revenue of ~$250/month.  This doesn’t seem like a big business.  Very well might be a personal collection or collections being sold off.

[dbfolks166mt]

Guy is making revenue of ~$250/month.  This doesn’t seem like a big business.  Very well might be a personal collection or collections being sold off.

     Since 1998 and 5.4K items ago?? 🤔 Still has the same tax liability regardless. 

[chapeau-noir]

FWIW, I once knew a guy with 260 pedal cars - personal collection. When I lived in town my neighbour had his house filled with pinball machines - I mean, the entire house, and he even had some on his front porch. Some people have huge collections. I could have sold at least 6000 books since 1998. Still, yeah, that is a lot of stuff.

[frankenhobbit]

Fun fact - You will not legally owe one red cent more in taxes if you receive the 1099-K than if you do not. 

If you made money, you owe tax, 1099 or not. Not because of the 1099, but because you made money. Just like a 'real job'

If you did not (say you are not reselling but getting rid of stuff around the house), then you fill out a form showing your costs exceeeded the income. Voila, no tax on those sales. 

[luckythewinner]

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@pfaltz2004 wrote:

IS IT SET IN STONE FOR THE $600 THRESHOLD (1099-K)?

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The IRS and the individual States make the decision about 1099-Ks. As far as I can tell, the IRS has remained silent since announcing "plans" to set it at $5K for 2024.