What the hell happened to Ebay?

The suck part is the 1099 creates a computer trail. If that doesn’t match your reported income, AI taxbots could flag you for a human audit.

Flea bay started as a garage sale. Now they think they are an e-commerce powerhouse.

1. Save your info for 7 years.
2. To prevent audit I guess you could report the gain with a more than offsetting loss.

3. This gets even more interesting in a cashless cbdc world.

Looks like the IRS has figured out that this is a giant shitshow. I say this because of the special cases, and multiple locations across 1040 schedules where entries and corrections must be made.
https://www.irs.gov/newsroom/form-10...stions-general
I doubt the IRS ever intended to tax personal sales, but ebay merchants are blurring the line, and it's possible we all get caught up in the attempt to tax them.

Seems like the IRS recognizes this, so there's a reporting exclusion for 2022. In general, you only receive a 1099K when you have more than $20k and more than 200 transactions. My understanding is that reported or not, taxes are generally due, but Imma guess the IRS is going to let this slide for non-merchants until they figure out how to limit the paperwork.

Technically anything over $600 is reportable. And taxes are always due, reported or not. Who knows what they're doing for 2023.

If you're a dirtbag ski bum who files 1040EZ, or not at all, and you make that heli trip to AK, and your buddies Venmo you their shares, there's a chance future you receives a 1099-K, and an April 15 blessing with the full 1040 and its schedules. Although if you do the paperwork correctly, your buddies' payments aren't taxable. However, if you profit from selling those heli seats, it looks like the IRS sees that as income.

Payment on a ski lease share may create a similar tax paperwork headache.

Quote:

Originally Posted by LongShortLong

Anybody figure out what this means to the IRS? Seems like if I buy a quiver every year, and sell it at end of season - 5 pairs / $500 each, I'm getting a 1099-K for $2500. That's theoretically $2400 taxable (-$100 in seller fees). However, I paid $1000 each, so it's actually a $2600 loss ($2500 sale - $5000 purchase - $100 fees). How do I file this?

See the IRS link. Not taxed if you file correctly an offsetting loss as "other income." Losses on personal items cant be claimed.

Quote:

Originally Posted by LongShortLong

Does this mean everyone needs to track receipts on everything we buy/sell? If I sell my car for $25k, I sure don't want to pay taxes on that. Am I supposed to file it as a loss ($40k new - $25k) ? Do I need to save my invoice forever so I can sell my old car?

Yes :( Though technically you can BS the auditor about the purchase price, so maybe not.

Quote:

Originally Posted by LongShortLong

Should I sell all my old junk to create a tax loss, rather than trashing it?

Losses on personal items can't be claimed. Unsure if they can offset other gains. Probably not.

I find it hard to believe the IRS wants to collect taxes on traditional personal sales, nor do they want to force paperwork on everyone who resells something or organizes a ski trip. My guess is they are struggling to understand and apply the law appropriately.

1040EZ no longer exists.