1099-k

[BigBlue1]

Kiss my arse. I am so beside myself right now. Obviously I am young and have no experience in buisness. Had know clue about this. Sold over $26,000 in items on ebay thru PayPal last year and just received one. I cant believe it, but I guess I can. Well I guess I can kiss my Rolex goodbye.
Damn
Im in the DUMPS.

[superstarmar]

Find a good cpa?
Maybe you can keep your Rolex...
Or move to Florida... and still find a good cpa...

[BigBlue1]

It is so messed up.You buy something with money you already paid tax on, then sell it and get taxed on the money you already were taxed on that you received back. WOW. This is why I hate goverment. Unreal.

[swils8610]

I’d find a good CPA.


Sent from my iPhone using Tapatalk Pro

[Laszlo]

Found this, hope it helps:

Hobby or Business
If you conduct eBay endeavors to generate a steady profit, then the IRS categorizes this activity as a business. If you occasionally sell items to get rid of things you no longer use, then eBay is a hobby, according to IRS guidelines. When your business sells a $5 item on eBay for $50, you must report this income to the IRS. You can deduct the $5 for inventory costs, your listing fees and any expenses associated with procuring your item from your $50 sales revenue. If the remaining money pays for non-business related expenses, then the IRS considers it your income.

1099-K
EBay and other online resale venues will submit a 1099-K to the federal government if your sales exceed a certain dollar amount or number of transactions. This stipulation applies to sellers who had $20,000 in gross sales or more than 200 transactions in the calendar year. All online sellers must have tax identification information on file. If your sales meet these criteria, you will have to pay taxes on it, but there are ways to lessen the tax bill.

[Reddy_Kilowatt]

Originally Posted by BigBlue1

Kiss my arse. I am so beside myself right now. Obviously I am young and have no experience in buisness. Had know clue about this. Sold over $26,000 in items on ebay thru PayPal last year and just received one. I cant believe it, but I guess I can. Well I guess I can kiss my Rolex goodbye.
Damn
Im in the DUMPS.

I suggest researching the tax code and filing accordingly. Your beef with "government" seems misplaced.

[breitlings]

...

[tyler1980]

you are not taxed if you didn't make a profit and no way all of that 26k is taxable.

Its income though so i personally don't see a difference in making money on eBay or making money at an office. Its the same.

[ejvette]

If you have over 20K in sales annually on eBay they issue a 1099 it's easy enough to deal with on your tax return without tax implications get a CPA

[beshannon]

https://money.usnews.com/money/blogs...out-the-1099-k

[wantonebad]

https://www.rolexforums.com/showthread.php?t=585491

I received this note from a friend, I'm not a CPA and you can't take this suggestion as professional advice, PLEASE seek the assistance of a tax professional before you act on anything.

I would list a line item under other expenses (detail on p2 of Sch C) that says "income reported on Sch D" in the same amount as the income so that your net Sch C is zero.

If you do 3b) then you will have to also list the 1099-K income on Sch D as a sale of a personal asset. The proceeds would be the amount of the 1099-k income and the cost basis would be what ever you paid for the watch. If you sold the watch for 10,000 and you paid 12,000 I would list the exact amount, but if the cost is more than the proceeds, just be sure to list the net gain/(loss) as Zero.

The bottom line is this: If you paid more for the watch than you sold it for, the effect on your tax return should be ZERO income.

[BigBlue1]

Thank you for your help guys. It wasn't as bad as I thought. I had 2 transactions for a couple thousand that were refunded that paypal counted as an earning, some deposits and etccc. I believe I will be fine.

[cruise_bone]

Originally Posted by BigBlue1

Kiss my arse. I am so beside myself right now. Obviously I am young and have no experience in buisness. Had know clue about this. Sold over $26,000 in items on ebay thru PayPal last year and just received one. I cant believe it, but I guess I can. Well I guess I can kiss my Rolex goodbye.
Damn
Im in the DUMPS.

Have you heard of BASIS? That should offset the $26,000 amount.

Most items sold on Ebay cost more than people sell them for. That would mean you may not have taxable income from this at all.

[BigBlue1]

Damn its a lot of work, going thru all statements, auction sites, auction houses, purchases, package material, mileage, ebay fees, paypal fees etc etc etc.
Holy crap I need an accountant LOL
Holy Crap, need to tighten my belt and drop some bows.