January 1 could be interesting thanks to congress.

[Brian Van Horn]

Just going over the pros and cons. First, there is progress. Then there is congress.

Ah, the 1099-K reporting of kicking in on 1/1/2023 for 1/1/2022. This is if your item sold for more than $600.00. If you don't have an original receipt/proof of purchase, you get a 1099-K with more due in taxes even if you lost money because you can't show the loss on paper. Still, we have congress that passed this last year. Slow clap.

https://www.youtube.com/watch?v=92sX4kS5XNQ

Congress does something in a week? That's a good one. Still, there is a chance. About the same as a three-legged horse winning a race.

Have to wonder how creative the reporting is on final auction prices by consignors who paid cash on their original transactions.

Yes, I am aware of the previous discussion of this topic:

https://www.net54baseball.com/showth...ighlight=1099K

Happy Holidays!

[Brian Van Horn]

Bonus:

https://www.youtube.com/watch?v=Ou2kXK7tHKc

[theshowandme]

Talk to your CPA and do not listen to influencers on YouTube

/thread

[90feetaway]

Wondering if this influenced the number of sellers and sales on eBay this year?

[Jason19th]

The IRS is not coming for us. Everyone need to calm down. The law has not changed. It was always our responsibility to account for our sales and profits. The IRS is not going to assume that we bought all of our cards for zero. They are not going to second guess reasonable valuations and expenses. They don’t have the time for this for people who are getting a couple of 1099’s. Now that may be different for people with hundreds of thousands in sales. But those people are running businesses and should be held to the standard of people who run businesses.

[bobbyw8469]

Originally Posted by Jason19th

The IRS is not coming for us. Everyone need to calm down. The law has not changed. It was always our responsibility to account for our sales and profits. The IRS is not going to assume that we bought all of our cards for zero. They are not going to second guess reasonable valuations and expenses. They don’t have the time for this for people who are getting a couple of 1099’s. Now that may be different for people with hundreds of thousands in sales. But those people are running businesses and should be held to the standard of people who run businesses.

It's a nightmare for the casual seller. I guess they want to set up at my next yard sale as well.

[soxinseven]

Originally Posted by bobbyw8469

It's a nightmare for the casual seller. I guess they want to set up at my next yard sale as well.

It's not a new development for some of us. Massachusetts and some other states have been doing this since 2017. Seems like it's pretty much nationwide now, with a few exceptions I'm sure.

[Keith H. Thompson]

that my sales are entirely from my personal collection acquired fifty years ago, and it bothers me that I have to pay taxes, even though I understand why the eBay platform requires it. But, I solved this problem by simply taking my 1099-G to my tax accountants and let the chips fall where they may. And some of them fall pretty hard and leave dents.

[Exhibitman]

Bogus. False. Complete BS hyperbole. We've been over this before but apparently some people aren't paying attention.

First of all I have dealt with IRS and state auditors. You do not need paper proof to prove basis. Testimony is evidence. I've had clients face down the IRS with direct testimony. I paid $500 for a Warren Spahn card that I sell for $1,000 on eBay and I get a 1099, I report it as such and that will stand up in a court or in an audit. The only things you absolutely must have receipts to prove on your personal return are charitable deductions.

Second, all a 1099 does is alert the IRS that you received money, not net income. I get them every year in the millions because any payment to an attorney is 1099'd and any settlement money paid to an attorney's trust account is 1099'd, all under the law practice's tax ID. The settlements and my deductible costs and the proceeds all are flushed through on my tax return and never hits my net income.

The people panicking over this are worrying about nothing, unless they are tax cheats who didn't intend to declare their incomes from card transactions. Don't do that. Just pay your taxes. If you made huge profits, be happy you did. Profits are a nice problem to have.