Ebay Income on 1099-k & selling old stuff

[Mary2e]

I'm sure this is going to be a popular topic when the 1099-ks start coming. 

Here is my situation...

My husband and I have kept all our old LPs from the 60s/70s/80s and have started to sell them on ebay.  Much to our surprise, we are getting a good amount of money for them and will be getting a 1099-k for 2022.

We purchased all these LPs, but of course, don't have any receipts for them.  I don't know if we're classified as hobby sellers or something else.  We have very few expenses related to the sales - fees & postage, and that's about it.  We have no way of determining their cost.

I  have also read that the 1099-k will be the gross amount of the sales, which will also include sales and shipping but NOT include returns or cancellations.

This is going to be a record keeping nightmare if I have to go in and figure out the values that shouldn't be including in income, such as the returns/cancellations.

Are we all going to get audited because the 1099-k doesn't show only gross income?

How are others preparing and handling this?

[Critter-3]

This is a situation ... in the past you were still required to report this income but now with the 1099-K forms being issued you are forced to report the income.   On the Sch C you can also report the expenses along with the income.   If you cannot figure how much you originally paid for the sold items the IRS assumes the cost is zero so a guess is better than nothing. 

If you are selling personal items for a loss you cannot take the loss so the cost of goods sold would be limited to the income on the sale.

[fanfare]

desirable vinyl recordings are worth more than you paid.

certain vinyl recordings are collectible so if you get a huge amount for a recording it may be considered 28% collectible 

We're all on the honor system here.

You probably would not report it as a collectible.