new 1099-K rules

[BobC]

Originally Posted by cjedmonton

I greatly appreciate the detailed response!

Finally got a response from Paypal on this. They said it is reportable on the 2021 term since that is when the buyer sent the funds, even if they are not yet available to me.

The parcel is still en route, thus the hold until it is delivered. However, the buyer completed the transaction on their end in 2021, so that’s how they said it will be viewed.

Watch me claim it for 2021 and then get a 1099 for the 2022 tax year anyway (assuming no other sales for the year). That’s a mess I don’t want.

Well good, glad they answered you. Keep the copy of the email they answered with, or at least the name of the person you talked to. And if you do report the sale in 2021, and then find they stick it on your 2022 1099-K form after all, I wouldn't panic. I'd be sure sure to report the full amount of the sales on your 2022 1099-K form on your 2022 tax return. And then if you report your 2022 sales as a dealer in business, I'd deduct the sales amount you had already reported on your 2021 return as some type of other expense of the dealer business being reported on your 2022 return. But if you report your sales activity on your 2022 return as an investor or collector, go ahead and list the sales amount you already reported on your 2021 return as a sale on your 2022 return as well. But for the cost basis, report the same amount you reported for the sale so the net profit comes out to $0. Either way, you still end up fully reporting the sales shown on your 2022 1099-K form, but don't pay tax on the sales income you already reported on your 2021 tax return.

Hope this helps, good luck.