1099-K from EBay for sales of personal items

Forum|Forum|4 years ago
February 13, 2022
4 replies
16 views

It's not a business. Where to report $1056.

ProSeries Professional

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Best answer by chasetax

Originally I thought to enter as 'other income' and then write-in a subtraction for the same amount. However in the past when I have entered items there, it appeared IRS was not reading my entries-including preparer notes. This year I will enter on Schedule C, business activity--non-business sales of personal property, activity 999999, and under misc expenses will back out the amount as 'sales of personal property items-not a business'

C

chasetaxAnswer

Level 6

Originally I thought to enter as 'other income' and then write-in a subtraction for the same amount. However in the past when I have entered items there, it appeared IRS was not reading my entries-including preparer notes. This year I will enter on Schedule C, business activity--non-business sales of personal property, activity 999999, and under misc expenses will back out the amount as 'sales of personal property items-not a business'

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Terry53029

Intuit Community Champion

If you sold any personal items at a gain, report on schedule D, as a capital gain. if a loss, no reporting is required. Make sure Ebay did not assign you a Merchant Category Code Unless you are running a business. Having said that I would put on other income and back it out with a negative number, so my client doesn't get a letter from IRS

BobKamman

Level 15

I don't sign inaccurate returns under penalty of perjury just because I want to play "Trick The IRS Computer," nor do I advise my clients to do so. And IRS sends inaccurate notices to people all the time anyway, like the CP80 going to people whose check was cashed but whose return is still in Service Center limbo.

But even if I joined that game, I would realize that IRS has de minimis rules and isn't going to fuss over a piddling amount of $1,056. If anything was sold at a gain, it goes on Schedule D. An interesting question would be whether there were five Hummels sold, and one resulted in a gain of $500 and the other four in a loss of $800, how would you show it there? Would it make a difference if it was all one lot? If separate lots going to the same buyer the same week?

joshuabarksatlcs

Level 9

RE: But even if I joined that game, I would realize that IRS has de minimis rules and isn't going to fuss over a piddling amount of $1,056.

Years ago, a client got audited. I asked the agent to shed some light on what had triggered the audit. After all, there wasn't much to audit for the mostly W2 client. The reply was "The Form 1099".

Wifie sold $600 worth of natural drinks in one of those pyramid sales sca... um.... schemes and no income was reported on the $600+ Form 1099. She didn't even know what that dang paper was for. That was a long, long time ago, when an auditor nicknamed Maddog was around at the local service center.

I come here for kudos and IRonMaN's jokes.

BobKamman

Level 15

Agents don't know what triggers audits. Those decisions are made at the Service Center, usually after a 1960s algorithm kicks a return out using a 1990s computer. But then it is reviewed by a human, and sometimes those are detailed-in from local offices (but that reviewer would not end up as auditor). The agent was, to use the technical term, "pulling your leg." It was probably your client's neighbor who turned in a whistleblower form because they didn't like all those cars parked in the street for the Tupperware parties.

IRonMaN

Level 15

I have been hanging around here too long. For some reason I knew Bob would pop in and offer the advice that he offered. Bob - you need to run with scissors and surprise us once in awhile 😉

Slava Ukraini!

E

Ephesians3-14

Level 7

HA!

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