$5,000 sales on ebay now...
AUandAG
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Is the threshold for 2024. Sales under that, generally, will not get a 1099K. $2,500 in 2025 and $600 in 2026 and thereafter. Unless all gets changed again.
bob 
Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
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Careful. Some states have the $600 threshold in place and if you are a seller living in one of those states then you most likely will receive a 1099K.
I can understand getting a 1099 if you are a business, BUT someone selling off some stuff sitting around the house shouldn't have to pay an income tax on USED ITEMS sold.
The threshold was $20,000 or like 2000?? Items.
And YES I know... I could keep my purchase receipts for 30 years BUT I'm not going to be running a business and don't want to do this paperwork.
Let's hope this new administration gets back to the money generation and doesn't want to mess with the little fish for a few hundred bucks of sales on USED Already Taxed items.
You do not pay income tax on "USED ITEMS sold". You pay income tax on PROFITS from anything you sell. And you OWE INCOME TAX whether a 1099 is issued or not, if there are profits. And if there are no profits, you don't owe income tax even if a 1099 is issued.
It's really not that hard.
Oh BS. Profits are in the construct of IRS considered business. Profits should not be considered for any item sold on eBay unless through an IRS considered business. Ex: You sell a used motorcycle on eBay for 10k. You do not have an eBay or any other considered business. Now you receive an 1099 and potentially owe a profits tax on an item simply because of price and venue. I suppose classified paper ads, Craigslist, garage sales, etc. are next. BS.
Taxation already applies to the profits (business) or capital gains (individual) for items sold through ANY venue.
Unless something changed Massachusetts is $600 for a 1099 and has been for a few years now. See link below for further information.
Donato
https://www.paypal.com/us/cshelp/article/current-form-1099-k-reporting-thresholds-2024-update-help1131
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I started keeping receipts once I realized I had a habit, missed a few years but at this point I'm pretty sure the govt. owes me money.
What I dislike, though it is what it is, the govt doesn’t want people investing in things like precious metals and so taxes at the highest rate for individuals. And if you sell at a loss, which can happen for many things, you don’t owe but you don’t get to use that as credit as an individual. One of the things I learned many years ago is a term that I forget but essentially you plan to sell something that you know will lose money to offset something that will make money in the same sale to reduce your overall tax burden. It’s a good opportunity to jettison mistakes instead of just holding onto them.
I am not a tax attorney, nor do I play one on TV. To better explain my example, the Bike new was 20K, sold for 10K, capitol loss, not a gain. Should I try to claim it? That is where the attorney comes in. Does eBay know when I sold the bike if it was at a loss or a gain? No, they still will send the 1099 because the Feds keep moving the goalposts and eBay is aggressive on this issue. eBay will send a copy of the 1099 to the Feds. What happens if the 1099 is NOT filed with taxes? You know the answer. Moreover, you sell the bike at a differing venue garage sale, estate sale, local auction etc., who wants the extra burden of deciding/declaring personal vs. investment sales. So yes, it is BS.
Don’t count on it. I expect you would get a 1099k for the 10k you sold the bike for. I sold $5k of basement crap a few years ago for the kind of loss you would expect. I got a 1099K. Who keeps receipts on basement crap. Hire a lawyer and accountant? I felt easiest way to pay the damn tax, about $1000 and never get myself in that mess again.
eBay isn't "aggressive" on this issue. eBay is obeying the law.
You wouldn't need receipts unless audited. For used items, I guarantee the IRS is not going to make a fuss about missing receipts.
"> eBay isn't "aggressive" on this issue. eBay is obeying the law."
"> You wouldn't need receipts unless audited. For used items, I guarantee the IRS is not going to make a fuss about missing receipts. "
In addition to being a moderator here, are you an eBay board member and work for the IRS? C'mon, you can tell all. You are amongst friends here.
^this. Auditors know that retail goods for personal use depreciate and are very unlikely to chase it after the initial letter.
Just work in all your deductions....Apmex was the only metals company that required an ss# when I sold to them.
LOL. No, but I do get tired of people evading taxes. I'm not referring to you, but I know a lot of flea market people that have been evading taxes on eBay receipts for YEARS until the 1099 change. When it was $20,000, I knew a guy who had 3 accounts and did $50,000 per year in essentially retail sales and reported none of it. He was furious when they lowered the threshhold and he got a 1099.
Ok, you are a dealer/seller and I would feel the same in your position. Seems fair for a level playing field in your profession. I respect that. Since I am not a dealer/seller, my take is and remains as I have written, from that perspective.
IF you are not a moderator, I think you missed your calling...j/k... good points and that is no BS.
If I had known it was $5000 and not $600, I may have used Ebay to sell things. Until you can write off a loss, it will never be a fair system.
Again, it depends on your state. Google it.
Don't get me wrong, I'm an anarchist at heart. But, as you say, I just want a level playing field. I'm not for taxes, just fairness.
Peace