I have over $600.00 gross eBay sales in 2022 from selling only personal items. I'm downsizing. Do I report the proceeds on tax return? 1099-K?

[Miltiades4444]

I am in the exact same situation. I was notified that I will be receiving a 1099-K from Ebay from selling items in order to downsize.

[dom4renee]

Likewise, I'm curious about the costs involved in having to complete the 1099-K form. Eg: I sold a bunch of stuff, most of them at a loss so in reality, I didn't make $600 in profit (maybe like $100)... but I'm guessing my accountant will charge me more than this to log & process the items sold.

[LisaS]

Hi, the key here is that the IRS will now have this information and they don't know how much profit or loss you had until you report it.  TurboTax will help you thru the entries needed (you'll go thru a flow to enter the information a it appears on the 1099K) included guiding you thru how to report the sale of a personal item.  Just be aware that the IRS rule is that if it is personal property that you sell at a loss that you don't get to take the loss but sales at a gain are taxes.

[SpecID45xL]

Okay I use turbotax. I have reported 1099-K for the last two years. No problems. [thank goodness for Turbotax.]  I just thought with the changes due to the new law how I report would change.  For 2022, I can still write off supplies, eBay fees, shipping costs against the gross? 

[LisaS]

For sale of property, yes.  Those are all expenses against the sale.  So when you enter the amount there should be a flied where you can enter that and it adjusts the profit/loss on the sale.

[Miltiades4444]

How would you handle profit / loss for items bought 15 years ago and sold this year but do not know the original retail cost.?

[GreenFallsHollow]

@LisaS , can you please clarify  "Just be aware that the IRS rule is that if it is personal property that you sell at a loss that you don't get to take the loss but sales at a gain are taxes."?  So if I sell a bike I bought for $800 for $650 via a Venmo payment, I wouldn't get to claim the $150 loss against the $650 income?  But the entire $650 would be considered income and subject to taxes?  Or would I have to sell the bike for more than $800 and then the profit I made on selling the bike for more than I paid for it would be income?  Sorry for being dense but I just don't understand the "sales at a gain are taxes" part of your statement.

[LisaS]

Great question - so the amounts are reported but only the NET goes to your income.  It will be represented on your tax return as follows:

Form 8949 will report what you paid for the item (your basis) and what you sold the item for (what you received

(there is more here like date purchased and date sold but that doesn't play into this example)

On the Form 8949 the amounts are "netted" to show if you have a gain or loss.  In your case you have a net loss of $150

But, because this loss is not allowed the 8949 and the Schedule D will reflect a $0 in the gain/loss fir this along with a code "L" which indicates to the IRS that this sale was personal property and the loss is not allowed.