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$600 reporting Threshold Postponed, will be 5K in 2024

Good news for tiny sellers - even if eBay takes credit they don't really deserve.

https://community.ebay.com/t5/Announcements/IRS-announces-another-delay-of-the-600-reporting-threshold-for/ba-p/34153125

IMHO $5000K is fair. $600 was a decades old amount that never accounted for inflation or for governmental administrative overhead. I for one am OK with that amount as long as it's annually adjusted for inflation.

It's the singer not the song - Peter Townshend (1972)

Comments

  • thedutymon11thedutymon11 Posts: 668 ✭✭✭✭

    Morning,

    For Fiscal year 2024 it will be $5K, but the Current plan is to revert to the $600 threshold for 2025. This doesn't help except for a temporary reprieve. Hopefully they think this through and make further adjustments.

    YeeHaw!

    Neil

  • DrBusterDrBuster Posts: 5,378 ✭✭✭✭✭

    Fun fact, $600 is the reporting number for lottery wins for tax purposes and has been in GA since day 1. Wonder if they got that figure from there initially.

  • coolstanleycoolstanley Posts: 2,863 ✭✭✭✭✭

    @thedutymon11 said:
    Morning,

    For Fiscal year 2024 it will be $5K, but the Current plan is to revert to the $600 threshold for 2025. This doesn't help except for a temporary reprieve. Hopefully they think this through and make further adjustments.

    YeeHaw!

    Neil

    Is that 5k AND 200 transactions? Or just 5k?

    Terry Bradshaw was AMAZING!!

    Ignore list -Basebal21

  • Bosox1976Bosox1976 Posts: 8,551 ✭✭✭✭✭

    Does anyone know if/when 4SC and/or Greg Morris send out tax stuff to consigners? Or any of the big auction houses? Thanks

    Mike
    Bosox1976
  • BaltimoreYankeeBaltimoreYankee Posts: 2,994 ✭✭✭✭✭

    There are a few states (like Maryland) where the eBay threshold was $600 going back to the 2022 tax year. I wonder if that is still the case for 2024. I remember being surprised when I got a 1099 for 2022 - luckily, I kept pretty good records and was able to match up sales to original purchase prices.

    Daniel
  • West22West22 Posts: 228 ✭✭✭

    Keep good track of your purchases (cost basis), be honest and get a good tax professional. It’s worth paying your fair share of taxes to sleep at night.

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