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Personal Finance and Investing

MichMan

(13,172 posts)

25. It will all be considered as gross taxable business income according to the link

Reply to sl8 (Reply #22)

Mon Apr 18, 2022, 06:23 PM

Apr 2022

What should I do with this information?

It is important that your business books and records reflect your business income, including any amounts that may be reported on Form 1099-K. You must report on your income tax return all income you receive from your business. In most cases, your business income will be in the form of cash, checks, and debit/credit card payments. Business income is generally referred to as gross receipts on income tax returns. Therefore, you should consider the amounts shown on Form 1099-K, along with all other amounts received, when calculating gross receipts for your income tax return.

Sounds like anyone getting a 1099-K will have to file business tax forms and schedules along with their individual return regardless if they actually have a business, or are just selling old items to get rid of clutter

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You Made $700 From an Online Side Hustle. Now the IRS Will Know. [View all] question everything Apr 2022 OP

The change down to $600 was part of the American Rescue Plan passed a year ago. MichMan Apr 2022 #1

Itemizing sales to IRS will be so popular & the IRS has legions of personnel to handle such fluff bucolic_frolic Apr 2022 #2

I'm one of those with a house full of stuff that I need to move along. Been here for 53 years. Paper Roses Apr 2022 #3

If you get $500 for something you paid $2000 for, that doesn't count against you. sl8 Apr 2022 #4

I have 53 years worth of stuff in an 8 room house with an attic. Paper Roses Apr 2022 #9

If you're selling items for less than you paid for them, the sales revenues aren't taxed as income. sl8 Apr 2022 #12

How does one prove what one paid for something in 1997 ? MichMan Apr 2022 #13

Proof? A receipt, I suppose. sl8 Apr 2022 #14

I'll just say $20 less than I sold it for then MichMan Apr 2022 #15

OK. sl8 Apr 2022 #16

The IRS wouldn't be sent a document listing the total aggregate amount of everything I sold MichMan Apr 2022 #17

I haven't seen a requirement that the taxpayer has to prove that transactions reported are not incom sl8 Apr 2022 #18

Are tax forms available for 2023 yet? MichMan Apr 2022 #20

The 1099-K form reports transactions. sl8 Apr 2022 #22

It will all be considered as gross taxable business income according to the link MichMan Apr 2022 #25

You should *consider* the amounts shown on Form 1099-K when *calculating* gross receipts n/t sl8 Apr 2022 #26

But you have to be able to prove you bought it for $2000 A HERETIC I AM Apr 2022 #27

What if you donated your things to H4H or other organizations.. Deuxcents Apr 2022 #6

Need $$$, not deductions. Paper Roses Apr 2022 #10

Interesting bucolic_frolic Apr 2022 #7

Huh? intrepidity Apr 2022 #8

The IRS doesn't know how or where you obtained an item bucolic_frolic Apr 2022 #11

So.....they assume the worst intrepidity Apr 2022 #28

Have a yard sale. PoindexterOglethorpe Apr 2022 #29

Easy enough to estimate what you paid, that's exactly what IRS will do if Hoyt Apr 2022 #5

Will the IRS also expect Social Security and Medicare taxes be paid on it like other income ? MichMan Apr 2022 #19

If it's deemed business (self-employment) income, Yep. Hoyt Apr 2022 #21

I would think that selling goods for more than one paid for them is a capital gains issue progree Apr 2022 #23

IRS: Understanding Your Form 1099-K sl8 Apr 2022 #24

Message auto-removed Name removed May 2022 #30

K&R JudyM Jun 2022 #31