Has anyone received PayPal or eBay 1099-k yet?

[auctionjmm]

Originally Posted by ElContador

Right, I have no idea anyone else's facts and circumstances here which is why I'm surprised so many people are sure someone's committing fraud or going to get audited (and lose).

If he were operating as a business he would have filed in 2020, 2021, 2022, 2023, etc. with or without a 1099 and while observing the 3 of 5 rule (being profitable in 3 of every 5 tax years). That's the simple answer.

What can be deduced from his post is that he happened to receive a 1099 in 2020 and took a loss, and happened to receive another one in 2023 and decided to take a loss again. What about 2021 and 2022? Is he on pace to profit in 3 of 5 years? What is his plan for 2024?

This will be my 13th year filing Schedule C and yes there are some losing years among those 13 and I have "upped my refund" in the years in which I lost money, but I have still consistently reported, and my 13 year profits well exceed my 13 year losses so I can do exactly what he is suggesting, albeit after consistently reporting for a long enough period of time that I am clearly a business and no audit would change that. Everyone is different, of course, but there are missing pieces from the info he provided.

[ElContador]

Originally Posted by auctionjmm

If he were operating as a business he would have filed in 2020, 2021, 2022, 2023, etc. with or without a 1099 and while observing the 3 of 5 rule (being profitable in 3 of every 5 tax years). That's the simple answer.

What can be deduced from his post is that he happened to receive a 1099 in 2020 and took a loss, and happened to receive another one in 2023 and decided to take a loss again. What about 2021 and 2022? Is he on pace to profit in 3 of 5 years? What is his plan for 2024?

This will be my 13th year filing Schedule C and yes there are some losing years among those 13 and I have "upped my refund" in the years in which I lost money, but I have still consistently reported, and my 13 year profits well exceed my 13 year losses so I can do exactly what he is suggesting, albeit after consistently reporting for a long enough period of time that I am clearly a business and no audit would change that. Everyone is different, of course, but there are missing pieces from the info he provided.

Thanks for the insight!

[whitmm]

Originally Posted by ElContador

I'm not sure what the issue is if you are set up as a business and trying to make a profit (i.e. not as a hobbyist or investor). If you bought $100,000 of cards, sold $60,000 of what you bought for $20,000 because they unexpectedly lost value (plus other expenses to run your business), and have $40,000 remaining cards to sell in a future year.

Based on his comment about him reporting it because his expenses will be quadruple suggests that he's not set up as a business. And, also, the way he's talking about it, I get the feeling he didn't report the income in the years he didn't receive the 1099.

His situation is a little more complicated than just he sold the cards at a loss. He appears to have gotten to that number by adding every little thing as expenses (including utilities, which we don't know if he was using a percentage or if he included the entire bill)

[TDK39]

Any help would be appreciated.

eBay Business folks…..sole proprietor or LLC or none & why? (Asking for tax purposes)

Thx gang!

[KhalDrogo]

Originally Posted by TDK39

Any help would be appreciated.

eBay Business folks…..sole proprietor or LLC or none & why? (Asking for tax purposes)

Thx gang!

Everyone’s situation is different. You need a CPA.

[TDK39]

Originally Posted by KhalDrogo

Everyone’s situation is different. You need a CPA.

Completely get it. Mine recommended to file as a sole proprietor, just curious what other eBay business sellers did.

[LondonGames]

Originally Posted by TDK39

Any help would be appreciated.

eBay Business folks…..sole proprietor or LLC or none & why? (Asking for tax purposes)

Thx gang!

Originally Posted by TDK39

Completely get it. Mine recommended to file as a sole proprietor, just curious what other eBay business sellers did.

[TDK39]

Thx for the feedback London. I trust my account and will do what he recommends, was just curious what others do with their business.

[LondonGames]

Originally Posted by TDK39

Thx for the feedback London. I trust my account and will do what he recommends, was just curious what others do with their business.

Oh I missed the part about "just being curious". Read the part about needing help, asking for tax purposes and thx gang!

Probably just my reading comprehension being low.

You're welcome gang!

[auctionjmm]

Originally Posted by TDK39

Thx for the feedback London. I trust my account and will do what he recommends, was just curious what others do with their business.

Selling cards from home with no employees is probably going to be Sole Proprietor for the vast majority. It's easier to file taxes and, as mentioned earlier, an occasional losing year will increase your tax refund assuming you have another job that withholds from your paycheck. Not that anyone would want to lose money on purpose but if you want to purge base cards every 5 years and take a paper loss for taxes, it's a nice little bonus.

If you are married, it will affect the household tax return so that's probably worth discussing with the wife if you are the type of couple that splits the return. Whereas LLC would be treated as a separate entity and not affect anything on the household return.

There's my two cents.

[TDK39]

Thx jmm!

[imbluestreak23]

Scorp

I have no idea why. CPA told me that’s the best for me

[Zauron]

Originally Posted by asujbl

Research 13 years of posts

I was nicer in 2010

It’s the same #@#@#@#@ year after year after year after year after year after year after year after year…

Add a few more

It's hilarious in a way we see the same questions/responses year after year.

My favorite is when people think this imaginary threshold PayPal/eBay created is the actual law when it's just random numbers they came up with to avoid issuing a million+ 1099's.

Also, shout out to the guy who filed his taxes mid January it looks like and mad he's getting 1099's in January that weren't reported.

[KhalDrogo]

Only three reasons not to have a CPA.

1. You are a W2 earner only.
2. You’re too cheap to hire one.
3. You’re too poor to hire one.

[asujbl]

Originally Posted by KhalDrogo

Only three reasons not to have a CPA.

1. You are a W2 earner only.
2. You’re too cheap to hire one.
3. You’re too poor to hire one.

This is accurate

[OhioLawyerF5]

Originally Posted by KhalDrogo

Only three reasons not to have a CPA.



1. You are a W2 earner only.

2. You’re too cheap to hire one.

3. You’re too poor to hire one.

I'm all 3 and I still have a CPA. (I'm only slightly joking)

[turkpbr18]

Originally Posted by auctionjmm

Selling cards from home with no employees is probably going to be Sole Proprietor for the vast majority. It's easier to file taxes and, as mentioned earlier, an occasional losing year will increase your tax refund assuming you have another job that withholds from your paycheck. Not that anyone would want to lose money on purpose but if you want to purge base cards every 5 years and take a paper loss for taxes, it's a nice little bonus.

If you are married, it will affect the household tax return so that's probably worth discussing with the wife if you are the type of couple that splits the return. Whereas LLC would be treated as a separate entity and not affect anything on the household return.

There's my two cents.

The IRS will generally disregard the LLC as being separate and distinct. The business info will still be submitted with your personal return on the Schedule C and your profit/loss will still be reported with all income on your 1040. In the end, the IRS still treats it as a sole proprietorship.

[rippev]

Got an email from eBay about 1099’s for the year. Most reports were that the threshold would be $5000 for 2024. Their policy says $600 now.

[KhalDrogo]

Originally Posted by rippev

Got an email from eBay about 1099’s for the year. Most reports were that the threshold would be $5000 for 2024. Their policy says $600 now.

People are screwed!

[oddstuff]

Originally Posted by rippev

Got an email from eBay about 1099’s for the year. Most reports were that the threshold would be $5000 for 2024. Their policy says $600 now.

I believe the page that shows eBay's criteria for what triggers a 1099k from them did not get updated for tax year 2024. The correct amount for 2024 should be $5000. 2024 is suppose to give sellers a "transition" year to get use to a lower threshold. 2025 is suppose to go down to the original amount of $600.

https://www.cnet.com/personal-financ...-need-to-know/

eBay criteria page: https://www.ebay.com/help/selling/fe...-1099k?id=4794

[jlzinck]

Originally Posted by KhalDrogo

LAZY MORONS are screwed!

Fixed yer post

[premium1981]

Originally Posted by rippev

Got an email from eBay about 1099’s for the year. Most reports were that the threshold would be $5000 for 2024. Their policy says $600 now.

It shouldn't matter. Ebay shouldn't be your moral compass for reporting or not reporting income like you are supposed to be reporting. The majority of people don't make money on their sales when accounting for everything as a whole. So keep up with what you spend and the vast majority of people will not owe anything more than they did before. If you are turning a profit, be thankful for the profit and pay the taxes due. The bigger my tax bill every year the happier I am because it means I have been that much more successful.

[rippev]

I was simply just stating that I got the email. Not saying that now it means I need to pay my taxes. I always report. This topic and conversation comes up every year, and I’m assuming that people that are now selling for the first time will reference this post.

[solt0131]

Better keep receipts.

[Bosoxfan5990]

Oh boy, here we go.