Ebay and 1099-K

[tvic]

Did any of you get the email from EBay asking you to sign a petition to Congress asking them to raise the $600 1099-k threshold? The way I understand it is, beginning 1/1/26, sellers on EBay will pay taxes if you sell more than $600 of stuff. I signed the petition. Here’s the link:
https://bit.ly/4iG7LXR

[bestgear]

Did any of you get the email from EBay asking you to sign a petition to Congress asking them to raise the $600 1099-k threshold? The way I understand it is, beginning 1/1/26, sellers on EBay will pay taxes if you sell more than $600 of stuff. I signed the petition. Here’s the link:
https://bit.ly/4iG7LXR

Hi Tim - the threshold has been going down for the last 3 years:
2023 - over $20,000
2024 - over $5,000
2025 - over $2,500
and in 2026, gross receipts over $600 will receive a 1099K. Last year I received a 1099K and I had to provide my CPA with Cost of Goods, eBay fees and Shipping Costs and as proof that miracles do happen, the net receipts was zero

It takes a bit of bookkeeping during and at the end of the year but in my case it had zero impact on my taxable income. YMMV

eBay position link: https://www.ebay.com/help/selling/fees- ... 9k?id=4794

[tvic]

So it sounds to me like we should keep a record of what a knife costs when we purchase it just in case we may sell it years later. I’m trying to sell some old movie magazines right now that were purchased sporadically over the past 40-50 years. I have no idea - or proof - what I spent for those. The same applies to other stuff I sell occasionally on EBay. Sounds like a nightmare to me.

[bestgear]

So it sounds to me like we should keep a record of what a knife costs when we purchase it just in case we may sell it years later

100 Yes. From the IRS website:https://www.irs.gov/businesses/what-to- ... k#personal

Personal items sold at a loss

A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it.

If you sold items at a loss, which means you sold the items for less than you paid, there is no tax liability. You have 2 options to report the loss:

• Report the payment on your tax return at the top of Schedule 1 (Form 1040) PDF. This will ensure you don’t pay taxes you don't owe

• Report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses.

Personal items sold at a gain

If you made a profit or gain on the sale of a personal item, your profit is taxable. The profit is the difference between the amount you received for selling the item and the amount you originally paid for the item.

If you receive a Form 1099-K for a personal item sold at a gain, figure and report the gain on both Form 8949, Sales and other Dispositions of Capital Assets and Schedule D (Form 1040), Capital Gains and Losses.

For me, I use a CPA and sleep like a baby at night.