1099 Misc vs 1099 NEC

[Ptsj7875123]

For 2022 tax reporting on consignment sales, do I issue 1099 Misc or 1099 NEC to consignors who made over $600. If consignor is selling personal items only vs selling on consignment as a business do I still issue a 1099 to consignor for sale of personal  household items? 

[DaveF1006]

It depends. According to this Turbo Tax source, you would issue a 1099 if any of the personal items were sold for profit. Most household items are ever sold for than what was paid for them. If these goods were sold for a profit, the IRS says that a 1099K must be issued in 2022 if gross payments exceed $20,000 and there is more than 200 transactions.

Beginning in the tax year 2023, that threshold is reduced to $600 and for any number of transactions. Keep in mind, unless there was a profit made, there is no 1099 reporting requirement although many consignees may receive a 1099K in error.