MikeB_CPA
Level 5
‎03-04-2022 10:18 AM

This week I have had three clients who received Form 1099-K for sales they made through eBay.  These are not professional sellers, but rather normal folks who sold just enough on eBay to trigger the 1099-K.  The proceeds reported are clearly not all profit because the items sold have basis.  Is there any way that the basis of the items sold can be subtracted from the income without having to prepare a Schedule C?

Thanks for any suggestions.

Mike

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Just-Lisa-Now-
Level 15
Level 15
‎03-04-2022 10:34 AM
Ive been reporting them on Sch D as Sale of Personal Property...washing out the sale with a similar basis amount...cant deduct any personal losses (you know they paid more for the item that what they sold it for), so its a wash.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
MikeB_CPA
Level 5
‎03-04-2022 10:39 AM

Thanks Lisa.  That was kind of my thought too.  I appreciate your help, as always.

Michael

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dascpa
Level 12
‎03-04-2022 12:23 PM

I've been washing them out on Sch C rather than Sch D.  In my mind a 1099-K is most likely related to a Sch C entity whereas a 1099-B, 1099-S, etc. is for the Sch D.  The IRS will need to address this issue as more and more people begin to receive the 1099-K.

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MikeB_CPA
Level 5
‎03-04-2022 12:33 PM

Thanks.  I think it's going to be a huge issue, considering how many people use eBay, etc., and how low the threshold is for issuing the 1099-K.  None of my clients who have received them have any idea what they are for!

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