I was selling some old clothes that I didn't need and I got a 1099K form because I moved to Virginia in October of 2020. The transactions all happened out of the country. How do I get this form "written off"?
Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report. You would only need to report the income if the sales of the personal items resulted in a gain OR if you were selling items with the intention of making profit. Keep records of the items you sold in case you receive an inquiry so you will be able to explain why you did not report the form.
You will need to file this with your return since Virginia and other states have lowered the reporting requirements. You will be able to enter your cost, so that this will not be taxable to you.
To report this income:
Hi, thanks for replying.
By amount, do you mean the number in the "gross amount of payment/card/third party network/transactions" box? Also, I am not sure where to find the adjusted amount.
Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report. You would only need to report the income if the sales of the personal items resulted in a gain OR if you were selling items with the intention of making profit. Keep records of the items you sold in case you receive an inquiry so you will be able to explain why you did not report the form.
I do buy products and sell them on eBay! where can I claim the cost of those items? I have received 1099k's' can you please help?
If you are buying products for resale, then you are considered to be a business and should file a Schedule C. You can claim the cost of your items as Inventory:
You can then also deduct other ordinary and necessary expenses related to your ebay business such as shipping fees, eBay and PayPal fees, travel expenses, software, as well as office expenses.