Jump to content
ATX Community

Tax Due On Third Party Payer Sales


Recommended Posts

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.

Link to comment
Share on other sites

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".

  • Like 1
Link to comment
Share on other sites

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.

  • Like 2
  • Haha 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Create New...