I've been interested in selling some items on services like eBay. The $600 limit has been a barrier to entry because I'm not planning to do this often. Just want to get rid of some items I don't want anymore.
My question has two parts:
Hello Patrick,
To answer the first question you don't fill out the 1099-K, you will receive a 1099-k from Ebay showing how much money you received from them.
There are 2 ways to report the income.
Here are a few helpful links
For question 2 should you get audited the IRS will want to see receipts or a resonable and constistent explaination ( appraisals, pictures and pricesof similar items bought) on how you determined the cost of the item
Hello Patrick,
To answer the first question you don't fill out the 1099-K, you will receive a 1099-k from Ebay showing how much money you received from them.
There are 2 ways to report the income.
Here are a few helpful links
For question 2 should you get audited the IRS will want to see receipts or a resonable and constistent explaination ( appraisals, pictures and pricesof similar items bought) on how you determined the cost of the item