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New 1099k rules...and how it impacts gear junkies/golfers. Is this actually a good thing? CPAs feel free to chime in (merged)


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On 1/27/2022 at 1:10 PM, Krt22 said:

Yeah ebay is pretty much dead to me, both as a seller and a buyer. Seller has to eat the 13%, buyer basically eats that 13% due to ebay prices being inflated and now sales tax on top of it (why the heck does something used, which tax was already paid on, need to be taxed again?), the overly buyer centric "protection" policy where complete morons can get their money back, and now potential tax liability on top of all the other crap

I'm perfectly good paying 13 percent for eBay's worldwide reach -- I think they've earned it. I've been selling there for well over a decade and EVERYTHING moves there eventually if priced right. I've been on both sides of the protection policy and I think it's fair, though I don't sell clubs and items where condition can be highly debatable in the eyes of the beholder. (I think some people just beg for trouble sometimes.) 

 

As for the tax liability, I'm just amazed that people are so worked up over it. Keep good records, get a good CPA and, well, if your side hustle is big enough to buy a car then don't be so surprised that it's taxable. 

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33 minutes ago, jschwarb said:

I'm perfectly good paying 13 percent for eBay's worldwide reach -- I think they've earned it. I've been selling there for well over a decade and EVERYTHING moves there eventually if priced right. I've been on both sides of the protection policy and I think it's fair, though I don't sell clubs and items where condition can be highly debatable in the eyes of the beholder. (I think some people just beg for trouble sometimes.) 

 

As for the tax liability, I'm just amazed that people are so worked up over it. Keep good records, get a good CPA and, well, if your side hustle is big enough to buy a car then don't be so surprised that it's taxable. 

I agree.  I've tried all the different ways to sell and ebay more times than not provides the faster sale at the best price even when figuring all the fees, etc.  That said, I have significantly curtailed my buying/selling since I got a 1099K for 5 figures last year, so none of this impacts me the way it used to.

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1 hour ago, jschwarb said:

I'm perfectly good paying 13 percent for eBay's worldwide reach -- I think they've earned it. I've been selling there for well over a decade and EVERYTHING moves there eventually if priced right. I've been on both sides of the protection policy and I think it's fair, though I don't sell clubs and items where condition can be highly debatable in the eyes of the beholder. (I think some people just beg for trouble sometimes.) 

 

As for the tax liability, I'm just amazed that people are so worked up over it. Keep good records, get a good CPA and, well, if your side hustle is big enough to buy a car then don't be so surprised that it's taxable. 

BST Revoked ???  What's the story with that ??  

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28 minutes ago, Tzoid said:

BST Revoked ???  What's the story with that ??  

 

Had a  thing going for a while where I sold brand new ProV1s for a few dozen at a time, well under retail. Mods banned me for "inventory dumping" or "running a business" or some such. I do not have a golf business, just had a nice little side hustle that didn't even make *that* much money, but I enjoyed meeting guys on the BST and also used the balls as trade bait. 

 

It's the mods' sandbox so it is what is, but as you see I have 41 perfect feedback and no negatives though the revoked tag makes me look like a shady dude. I don't appreciate that. 

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5 hours ago, jschwarb said:

 

Had a  thing going for a while where I sold brand new ProV1s for a few dozen at a time, well under retail. Mods banned me for "inventory dumping" or "running a business" or some such. I do not have a golf business, just had a nice little side hustle that didn't even make *that* much money, but I enjoyed meeting guys on the BST and also used the balls as trade bait. 

 

It's the mods' sandbox so it is what is, but as you see I have 41 perfect feedback and no negatives though the revoked tag makes me look like a shady dude. I don't appreciate that. 

That does suck....  Maybe they will reinstate your privileges someday.   Thanks for the explanation  

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10 hours ago, jschwarb said:

 

Had a  thing going for a while where I sold brand new ProV1s for a few dozen at a time, well under retail. Mods banned me for "inventory dumping" or "running a business" or some such. I do not have a golf business, just had a nice little side hustle that didn't even make *that* much money, but I enjoyed meeting guys on the BST and also used the balls as trade bait. 

 

It's the mods' sandbox so it is what is, but as you see I have 41 perfect feedback and no negatives though the revoked tag makes me look like a shady dude. I don't appreciate that. 

You had a business (albeit a small one), let’s not sugar coat it. I hope you reported that income 

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Perhaps this was covered earlier in the thread, but I did not see it, I also scanned the links that have been provided. I know this would be more geared to a CPA, but since I don't currently have one...I am in the process of selling a good portion of my large music collection (CDs and records) on Ebay, most of these were purchased new over 20 years ago for over $10 each. If I do not have receipts for these items, will I need to pay taxes on the entire sale amount? I certainly am not turning a profit on the sales as they probably average $5-7 per item. Any free insight would be appreciated.

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7 hours ago, rynobucket said:

Perhaps this was covered earlier in the thread, but I did not see it, I also scanned the links that have been provided. I know this would be more geared to a CPA, but since I don't currently have one...I am in the process of selling a good portion of my large music collection (CDs and records) on Ebay, most of these were purchased new over 20 years ago for over $10 each. If I do not have receipts for these items, will I need to pay taxes on the entire sale amount? I certainly am not turning a profit on the sales as they probably average $5-7 per item. Any free insight would be appreciated.

If you sell for less than you bought them for then you owe $0 in tax, but if you receive a 1099K you'll have to offset the 1099K value with the original cost of the items to show $0 profit.  Receipts aren't required to file and claim $0 profit.

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23 hours ago, Krt22 said:

You had a business (albeit a small one), let’s not sugar coat it. I hope you reported that income 

Don't worry, I reported it. It wouldn't have been enough to lift an IRS agent's eyebrow. I'll never be convinced that the BST is better by running guys like me off, but as I said it's their sandbox. 

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8 hours ago, jschwarb said:

Don't worry, I reported it. It wouldn't have been enough to lift an IRS agent's eyebrow. I'll never be convinced that the BST is better by running guys like me off, but as I said it's their sandbox. 

Very much like I was told.....they don't care about the guys helping other members out with deals like the Ross Nike deals, but they prefer the limited edition and rare stuff to be sold there. Yeah, we all appreciate members selling goofy Jordans marked up 500%...

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So for folks doing local deals and not making a profit, which approach are you choosing?
 

1) Cash only?

2) Request Friends & Family (Venmo/Paypal)?

3) Track purchases and sales to show sales at a loss?

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2 hours ago, Mych said:

So for folks doing local deals and not making a profit, which approach are you choosing?
 

1) Cash only?

2) Request Friends & Family (Venmo/Paypal)?

3) Track purchases and sales to show sales at a loss?

All of the above. I will try to avoid using G&S as much as I can just to avoid the headaches, but at the same time I will keep record of what I sell and it's approximate original cost

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I started collecting all the clubs I would typically sell here, then waiting for double your value trade-in day at PGA Superstore (or whatever company was having one). Then trade all 5 or 6 clubs in and get one new one.  It was a great way to get rid of a bunch of clubs, without having to go through the hassle of taking pictures, listing items here or eBay, boxing up the item, and going to USPS or UPS and mailing them.  I probably lose a little bit of money compared to selling them individually, but I also got rid of a lot of extra work and headache.  This IRS change now makes this an even more desirable plan for me going foward.

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20 minutes ago, brew4eagle said:

I filed my taxes last weekend, wasn't a big deal.  Now I see today in my USPS Informed Delivery email that I have a tax document from eBay arriving.  Oops!!!  Think I'll just ignore it.

The one thing that constantly shocks me in life is how many things just go away if you ignore them. 

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2 hours ago, brew4eagle said:

I filed my taxes last weekend, wasn't a big deal.  Now I see today in my USPS Informed Delivery email that I have a tax document from eBay arriving.  Oops!!!  Think I'll just ignore it.

 

Yes, received mine yesterday?  This was for 2021 so why?

Its all under the $20k limit.

Confusing as to what I need to do with this...I have not keep an accounting of these and they are all loss sales from prior purchases.

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8 minutes ago, BirdieBob said:

 

Yes, received mine yesterday?  This was for 2021 so why?

Its all under the $20k limit.

Confusing as to what I need to do with this...I have not keep an accounting of these and they are all loss sales from prior purchases.

My state (VA) has required this for over $600 since 2020.  I have received 1099Ks from PayPal last 2 years and included those in my tax returns.  Forgot that ebay was now outside of PayPal and they were late in sending the 1099k.

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4 minutes ago, brew4eagle said:

My state (VA) has required this for over $600 since 2020.  I have received 1099Ks from PayPal last 2 years and included those in my tax returns.  Forgot that ebay was now outside of PayPal and they were late in sending the 1099k.

 

How does this work exactly? I got one from Paypal that I spent the time breaking out - but that already includes my ebay transactions and I labeled them as such in my spreadsheet.


So does ebay send you a separate one...with the same transactions counted in there?

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4 minutes ago, dcmidnight said:

 

How does this work exactly? I got one from Paypal that I spent the time breaking out - but that already includes my ebay transactions and I labeled them as such in my spreadsheet.


So does ebay send you a separate one...with the same transactions counted in there?

Since ebay sends your funds to your back account it's a separate set of sales vs PayPal, etc.  I just forgot about that and thought my PayPal 1099k was all I had to worry about.  They all equal $0 for me in income so I think I'll just leave my return as is with just the paypal 1099k and see what happens.

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8 hours ago, BirdieBob said:

 

Yes, received mine yesterday?  This was for 2021 so why?

Its all under the $20k limit.

Confusing as to what I need to do with this...I have not keep an accounting of these and they are all loss sales from prior purchases.

Just received an email from Ebay that says...mistake on the 1099-K...disregard it.

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Opened my ebay 1099k and it is ~$1500.  Pretty late mailing by ebay.  Ugh, do I go back and revise my return or just wait for the potential audit?  I filed with HR Block online, guess I'll see if there's an easy way to add this 1099k even though I e-filed already.  

Edited by brew4eagle

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4 minutes ago, brew4eagle said:

Opened my ebay 1099k and it is ~$1500.  Pretty late mailing by ebay.  Ugh, do I go back and revise my return or just wait for the potential audit?  I filed with HR Block online, guess I'll see if there's an easy way to add this 1099k even though I e-filed already.  

It should be pretty easy to amend.

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2 minutes ago, mokedaddy said:

It should be pretty easy to amend.

Real quick research suggests I have to mail in the 1040X.  Frustrating part is my bottom line won't change, so might not bother.  The other thing that sucks- unlike paypal, ebay does not keep a good history beyond a couple of months.  While I know I didn't actually have income, I don't know what the item(s) I sold were for the monthly amounts.  I'm done selling stuff.

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8 minutes ago, brew4eagle said:

Real quick research suggests I have to mail in the 1040X.  Frustrating part is my bottom line won't change, so might not bother.  The other thing that sucks- unlike paypal, ebay does not keep a good history beyond a couple of months.  While I know I didn't actually have income, I don't know what the item(s) I sold were for the monthly amounts.  I'm done selling stuff.

Yeah it’s turning into a pia to get rid of old stuff.

 

Edit: if you don’t amend it the irs will send you a letter and you will have to explain then because eBay sends them a copy.

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15 minutes ago, mokedaddy said:

Yeah it’s turning into a pia to get rid of old stuff.

 

Edit: if you don’t amend it the irs will send you a letter and you will have to explain then because eBay sends them a copy.

Replying to the letter sounds easier, but I guess being proactive is always the better choice.  I did just find that my ebay seller account has a good history so I can see what I sold throughout 2021 (it was feedback history that is limited to a couple of months w/ details).

 

Edit- noticing that ebay is reporting the total sale amount before they take their fees, so it doesn't even match what they actually transfer to your account, scummy

Edited by brew4eagle

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4 minutes ago, brew4eagle said:

Replying to the letter sounds easier, but I guess being proactive is always the better choice.  I did just find that my ebay seller account has a good history so I can see what I sold throughout 2021 (it was feedback history that is limited to a couple of months w/ details).

My brother got a letter a couple years back and I believe they actually made him provide receipts so proactive may be a little easier.

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20 minutes ago, mokedaddy said:

My brother got a letter a couple years back and I believe they actually made him provide receipts so proactive may be a little easier.

HR Block online was pretty easy to make the amendments to 1099K and accompanying Schedule C.  I have to print it and mail it in, but doesn't affect my refunds so once I mail it hopefully that will be the end of it.  I have a couple of items to sell and then I'm done with BST and ebay.  I've had enough, sticking to what's in my bag.

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1 minute ago, brew4eagle said:

HR Block online was pretty easy to make the amendments to 1099K and accompanying Schedule C.  I have to print it and mail it in, but doesn't affect my refunds so once I mail it hopefully that will be the end of it.  I have a couple of items to sell and then I'm done with BST and ebay.  I've had enough, sticking to what's in my bag.

Yeah I figured it would be pretty easy to update.  I doubt they hassle you at all for it.

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From Ebay...

 

"A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.

We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.

We sincerely apologize for the error and any inconvenience this may have caused.

As always, thanks for selling on eBay, and for being part of the eBay community.

The eBay Selling Team"

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      Cameron putters - 2022 Rocket Mortgage Classic
       
       
       
       

       
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    • Post in PING G430 - Are They Finally Going Back to a Carbon Fiber Crown?
      So this was lurking on the USGA conforming clubs site... would be nice to see a a view from address.
       
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    • 2022 The Open Championship @ St Andrews: WITB & Equipment Photos- Discussion and Links
      Please put any questions or comments here
       
       
       
       
       
       
       
       
      General Albums
       
       
      2022 The Open Championship @ St Andrews Old Course - Sunday #1
      2022 The Open Championship @ St Andrews Old Course - Sunday #2
      2022 The Open Championship @ St Andrews Old Course - Monday #1
      2022 The Open Championship @ St Andrews Old Course - Monday #2
      2022 The Open Championship @ St Andrews Old Course - Monday #3
      2022 The Open Championship @ St Andrews Old Course - Monday #4
      2022 The Open Championship @ St Andrews Old Course - Monday #5
      2022 The Open Championship @ St Andrews Old Course - Monday #6
       
       
       
       
       
       
       
       
       
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      Srixon staff bags - 2022 The Open Championship @ St Andrews Old Course
      Mizuno 221 "Blue" irons - 2022 The Open Championship @ St Andrews Old Course
      Titleist 150th golf balls - 2022 The Open Championship @ St Andrews Old Course
      Justin Thomas testing a Titleist T200 2-iron: 150th Open Championship
      Mito Pereira testing a Ping i525 3iron for 2022 The Open Championship @ St Andrews Old Course
      TaylorMade's 2022 Open Championship staff bag??
      Callaway staff golf bags for the 2022 The Open Championship @ St Andrews Old Course
      Titleist's 2022 Open Championship bag???
       
       
       
       
       
       
       
       
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