Do I need to file for a 1099-K in Massachusetts for garage type sales on Ebay?

[jtabone16]

@TurboTaxCathi online

[jtabone16]

@TurboTaxCathi  I have everything including my w2, investments, etc imported into turbo tax online. Just stuck on this 😕

[CathiM]

Click on Federal on the left of your screen, under the Wages & Income tab at the top, the screen that comes up should say Your Income, the first thing is Job (W-2) then self-employment income and expenses, Interest...  scroll down to Miscellaneous

[jtabone16]

@TurboTaxCathi still not seeing it...all im seeing for 1099-k is 'Self Employment' and 'Other Common Income'

[jtabone16]

@TurboTaxCathi nvm found it under the 'less common income' sub-heading and then 'miscellaneous income' and then 'other reportable income' thanks!

[CathiM]

Oh good!  Glad you found it there.

[Tax1]

This link is helpful to find out if you have to report it. It is directly from the MA gov website.    <a rel="nofollow" target="_blank" href="https://www.mass.gov/service-details/frequently-asked-questions-about-1099-k-notices-from-third-part...>

[horizon0000]

@CathiM In addition to the resale of old items, are eBay sale of a small amount ($150) of unused UA lounge passes as a benefit of credit cards taxable income on the 1099K?  Even though I didn't directly pay for the passes, the sold price of the passes was much discounted relative to the public sale price.

[CathiM]

The reason the sale of personal items is not taxable is because you sell them for much less than you paid for them. So did you pay more for the UA lounge passes than you sold them for?  You cannot take a loss on the sale, but the cost does offset the income from the sale.  I am not sure what a UA lounge pass is though.

[horizon0000]

@TurboTaxCathi Thanks for your prompt reply. I didn't pay for the UA lounge passes as it is a benefit of my credit card. So I am not sure whether the sale is taxable or not. But the sale was indeed occasional because the passes were expiring and I didn't have travel plans before the expiration date.

[CathiM]

It is taxable. You can put the sale into TurboTax the same as instructed above, so it goes on Line 21 marked as 1099-K  but you won't be able to add that second line as a negative, since you didn't have any cost.  You do have to include the 1099-K income in your return.

[horizon0000]

@TurboTaxCathi  I remember that the credit card did come with an annual fee larger than the money I received for the sold passes, so the sale maybe not taxable. Do I need to enclose the receipt or other cost proofs when filing my fed or state tax returns?

[CathiM]

No, you don't attach receipts to your returns, but you have to keep them for your records in case the IRS or state questions it.  I agree that this is not a business, but I am not sure if the annual fee will pass as the cost of the passes.

[zhanchik]

There is a good explanation here on Mass.gov page.  If the income is not taxable, based on given examples, there is no need to report it:

<a rel="nofollow" target="_blank" href="https://www.mass.gov/service-details/frequently-asked-questions-about-1099-k-notices-from-third-part...>

[desperadoxy1989]

Hello,

If I sell some of my personal item which has appreciated in value since the time I bought (e.g., paid $100 for it, used for 5years and resale it for $120), do I need to report the $120 as taxable income? What if I don't have any record on how much I spent originally? Thanks