Making “garage sale” type sales on ebay should not be taxable, but how do you zero out the income reported on the 1099-K? Sorry - just realized I didn’t answer your initial question: Manages to keep the total income under $600, so conveniently, they don’t have to explain what to do if you bought a bike for $2000 and sold it for $1000 (Which, IMO, is more likely than the example that they provided, if you’re going to bother selling a bike through a marketplace where you may have to ship it.)Ĭongress changed the rules so that anyone who has receipts of more than $600 through outlets like eBay is no longer considered to be doing an ‘online garage sale’, so if you get a 1099-K, you need to document it on your tax return, or you will likely get a question from the IRS. For example, if you sell a bicycle that you paid $500 for two years ago for $350 on eBay, you usually don’t have to notify the IRS-and you can’t claim a loss on it. The additional advice that they give in the article:Īssuming that you originally bought the used items for more money than you are selling them for, you don’t have to report the income received from the eBay sale. So I would question their advice, especially since the rules changed for 2022 so that 1099-Ks are issued for receipts greater than $600.
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