Christian Posted February 1 Report Share Posted February 1 A client's daughter sold a bunch of items on Ebay and now has received a listing which shows over $11,000 in items sold. In my tax education this year I read that the IRS had suspended tax on these earnings for 2023 much as was done in 2022 until congress could decide a more reasonable amount for these earnings to tax. Am I correct on this and does someone possess an article on this. I recall reading it in Kiplinger's and intended on saving that issue but health issues this year served to confound my usually good work habits. Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted February 1 Report Share Posted February 1 Reporting the taxable income has not changed. What has/will change is the threshold for the electronic payment vendors to report 1099 data. A big for instance, I was able to get some Adele Las Vegas tix for the original dates. When she bailed at the last minute, we bailed as well, selling then for a HEFTY markup (paid for a fam trip to the Mouse). Just because I am not getting a 1099 does not mean the profit is "tax free". 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 1 Report Share Posted February 1 Perhaps you're thinking about the delay in filing 1099 K, which did not suspend the tax. Sounds like reportable income to me. Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 1 Report Share Posted February 1 See IRS Fact Sheet 2023 - 27: https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-party-platform-payments-plans-for-a-5000-threshold-in-2024-to-phase-in-implementation Quote Link to comment Share on other sites More sharing options...
Christian Posted February 2 Author Report Share Posted February 2 Yep sure does and of course the IRS has sent a list evidently provided by Ebay of each item and what she got for it. Needless to say it will not be yours truly sorting all that out. Quote Link to comment Share on other sites More sharing options...
BrewOne Posted February 2 Report Share Posted February 2 had a (former) client got caught in a similar situation--no mention to me of their buying and selling and possibly no 1099-K, but the IRS knew the amount they sold on eBay. When I told them they would need to know what they paid for every item they sold, they had a hissy fit. Since I had no idea how long this had been going on (possibly for years), I told them I wouldn't handle it and recommended they get a tax attorney. Their new CPA wanted to know why I didn't want to handle such a simple matter and I told him I'd retired. 2 1 Quote Link to comment Share on other sites More sharing options...
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