Ted Kaczor Posted March 8 Share Posted March 8 (edited) The Notice creates a transition period of one year, postponing the $600 Form 1099-K threshold until the January 31, 2024 reporting date. In essence, the IRS is taking the rules back to the pre-March 2021 threshold ($20,000 and 200 transactions) for any calendar year beginning before January 1, 2023. The lower reporting threshold (any number of transactions totaling $600) remains in effect for calendar years starting after December 31, 2022. This one-year delay does not apply to any of the other Form 1099-K rules not modified by the American Rescue Plan Act. Edited March 12 by Ted Kaczor sp Quote Link to comment Share on other sites More sharing options...
Mark Behrend Posted March 9 Share Posted March 9 We noticed we didn’t have to pay any taxes this year. That was great! I would have listed more things if I knew that. So, if I’m understanding right, what I sell this year will be taxed if over $600? Quote Link to comment Share on other sites More sharing options...
Noah Britt Posted March 10 Share Posted March 10 11 hours ago, Mark Behrend said: We noticed we didn’t have to pay any taxes this year. That was great! I would have listed more things if I knew that. So, if I’m understanding right, what I sell this year will be taxed if over $600? I also would've listed more. Unfortunately I only figured out about the 1-year delay in December of 2022, so I complied anyway and sold less than $600. 1 Quote Link to comment Share on other sites More sharing options...
Levi Mevis Posted March 11 Share Posted March 11 This is why I'm being careful about selling anything that I find and fix up (such as old fans, stereo equipment, antique radios, record players, VCRs, TVs, etc.), so I don't have to pay taxes on them, because technically I'm not a business owner like some of you guys are, I just do it as a hobby, and as an unofficial side job. Quote Link to comment Share on other sites More sharing options...
Mark Behrend Posted March 12 Share Posted March 12 On 3/11/2023 at 12:44 AM, Levi Mevis said: This is why I'm being careful about selling anything that I find and fix up (such as old fans, stereo equipment, antique radios, record players, VCRs, TVs, etc.), so I don't have to pay taxes on them, because technically I'm not a business owner like some of you guys are, I just do it as a hobby, and as an unofficial side job. As long as you sell under $600 you will be ok. Just remember, shipping is factored into that. eBay reaches such a broad audience, it’s hard to beat. Facebook marketplace can be good also. Quote Link to comment Share on other sites More sharing options...
Dave Hoatson Posted March 12 Share Posted March 12 You never have to pay taxes on what eBay reports, as this is gross sales. You only pay taxes on your net profit, which is the sale price minus what you paid for the item. The IRS has no idea what you paid. So, this is basically a non-issue. Quote Link to comment Share on other sites More sharing options...
Lane Shirey Posted March 15 Share Posted March 15 On 3/12/2023 at 11:50 AM, Dave Hoatson said: You never have to pay taxes on what eBay reports, as this is gross sales. You only pay taxes on your net profit, which is the sale price minus what you paid for the item. The IRS has no idea what you paid. So, this is basically a non-issue. Problem is, what if they ask you to prove what you paid? It’s not like you get a receipt at the flea market or fan meet. Quote Link to comment Share on other sites More sharing options...
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