• How to report Form 1099-K for Non-Business Income

    From Victor Roberts@21:1/5 to All on Fri Feb 18 16:17:04 2022
    Next year I will be one of the many people getting a Form 1099-K for
    casual sales on eBay over $600.

    How do I report the 1099-K on my 2022 tax return and how do I deduct
    the original cost of the items I sold? (Yes, I'm asking early for
    next year.)

    All the advice I see on the Internet is for people who receive a
    1099-K for business sales. I have not found any yet for casual sales
    where I do not plan to make a profit.

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  • From Rick@21:1/5 to Victor Roberts on Fri Feb 18 22:47:33 2022
    "Victor Roberts" wrote in message news:sn5v0hp8neo9t1hv9qkfai5g48rrl08g2l@4ax.com...

    Next year I will be one of the many people getting a Form 1099-K for
    casual sales on eBay over $600.

    How do I report the 1099-K on my 2022 tax return and how do I deduct
    the original cost of the items I sold? (Yes, I'm asking early for
    next year.)

    All the advice I see on the Internet is for people who receive a
    1099-K for business sales. I have not found any yet for casual sales
    where I do not plan to make a profit.


    If you don't make a profit - that is, if the items you sell on eBay are
    things you are selling for less than your original purchase price - just
    don't report the amount on your return. The 1099-K is not a report of
    income - it is just a report of money flowing through the company (in this case, eBay) to you. The IRS knows that doesn't necessarily constitute
    income, so I doubt they will give you any grief over this is your sales are
    in the $600 to a few thousand dollar range. If they are much higher than
    this - say in the tens of thousands - I would say just keep good records of what you sold and the approximate amount you paid for each item and approximately when you bought it, and that will most likely be enough to satisfy the IRS.

    --

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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