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Fred92
New Member

Selling Gifts from Employer

I often receive an end of the year gift from my employer (ex. iPhone) that is included in my W2 income (so taxed as income).  If I sold this on eBay, do I need to pay additional income taxes on the sale?  I received a 1099 K form from eBay.

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Accepted Solutions
tagteam
Level 15

Selling Gifts from Employer


@Fred92 wrote:

If I sold this on eBay, do I need to pay additional income taxes on the sale?  I received a 1099 K form from eBay.


For the 2022 tax year, TurboTax (at least the higher versions) have a 1099-K entry screen where you will enter the sales price (on the 1099-K) and your cost basis. You will report the sale but will not have a gain (that could potentially by taxed) unless the sales price is higher than your basis.

 

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4 Replies
NCperson
Level 15

Selling Gifts from Employer

@Fred92 - depends how much you sold it for... if you sold it for less than the value you 'paid' for it in your W-2, then that is a personal loss and not deductible in any event.  your cost basis is what you "paid" for it in your w-2. 

tagteam
Level 15

Selling Gifts from Employer


@Fred92 wrote:

If I sold this on eBay, do I need to pay additional income taxes on the sale?  I received a 1099 K form from eBay.


For the 2022 tax year, TurboTax (at least the higher versions) have a 1099-K entry screen where you will enter the sales price (on the 1099-K) and your cost basis. You will report the sale but will not have a gain (that could potentially by taxed) unless the sales price is higher than your basis.

 

Untitled.png

 

 

Critter-3
Level 15

Selling Gifts from Employer

Excellant ... glad the program is addressing this 1099-K issue that many will find themselves caught up in this year. 

 

tagteam
Level 15

Selling Gifts from Employer


@Critter-3 wrote:

Excellant ... glad the program is addressing this 1099-K issue that many will find themselves caught up in this year. 


I agree, @Critter-3. However, I believe the developers should have provided an option to select a line that indicates the amount listed on the 1099-K is not taxable (i.e., a 100% offset).

 

For example, in the case of a gift (loan repayment or whatever), the taxpayer needs to enter an offset and there is no way to do that with the choices provided on the 1099-K screen. Hopefully, they will add such a line in a future update.

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