@dillsdprib wrote:
With that being said, could you possibly elaborate about the 1099k situation?
From what I gather, there’s supposed to be new changes taking place with a lower taxable threshold, correct? Changes entail any sales over $600 in a calendar year will generate a seller receiving a 1099k, so what exactly does that mean:
1) If it’s not in effect yet, when officially will this occur (last I saw on IRS website, a 1099k still states at $20,000 or over 200 transactions)?
2) I’m really unsure, but will you need to submit any receipts of any kind for the goods you sell during tax time?
This 1099k thing is ultimately holding me back from selling because I’m understanding there’s supposed to be a bunch of paperwork involved, but I’m still trying to decipher all of this. Is there any sources which explain how this is all going to work?
Any clarification would be very much appreciated!
Thank you very much!
Basically what is changing is the threshold that "triggers" a 1099K in 2022 tax year. It was 200 transactions/20K prior. Now it is just $600 total from a single TP processor, no transaction limit or min. So if you plan on selling over $600 (including sales tax and any applicable shipping by the buyer) you will now receive a 1099K when prior you might not have.
Keep track of what you buy, how much for, what you sold it for etc, etc like a profit and loss sheet. This is something that more than a few sellers in the past never did.
Regardless if you made any money or not, if you do get a 1099K in 2023 for the 2022 tax year be sure to include it with your return with a justification. If you don't include it or explain it, or what have you then you're setting yourself up for an audit.
