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Personal Finance and Investing

A HERETIC I AM

(24,583 posts)

27. But you have to be able to prove you bought it for $2000

Reply to sl8 (Reply #4)

Mon Apr 18, 2022, 06:34 PM

Apr 2022

Last edited Mon Apr 18, 2022, 08:08 PM - Edit history (1)

I'm certainly no tax expert, but from what I understand, you either need a receipt for the purchase or a reliable source that shows the market value of the item at the time you bought it.

Otherwise, you're just making up numbers.

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31 replies

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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