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New IRS reporting for 2021?
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559 posts in this topic

I should have been more clear.  When I did the report for paid and shipped sales from 1/1/22 to 12/31/22, I was at about 19k.  Their report/1099 is showing me at 23k.  When I switch my search to all orders in the same time period, I get a still different number (but over 20k).  I'm trying to wrap my head around the discrepancies and also determine if I was sent a 1099 by mistake.  

The more I look at their 1099, the less it makes sense.  Their monthly breakdowns are not possible with the amount I sold, even accounting for potential fees being added.  Anyone else having something similar or am I just really thinking about this in the wrong way?

Edited by Beastfeast
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On 1/31/2023 at 6:06 PM, Ryan. said:

Sale price minus purchase price minus shipping minus fees equals net.

So it doesn't matter when sold book was purchased, or if it was raw, signed or graded when purchased, if you have proof (or best guess) of the above then the net amount is what you'll get taxed?

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On 2/1/2023 at 12:02 AM, MultiSig Mike said:

So it doesn't matter when sold book was purchased, or if it was raw, signed or graded when purchased, if you have proof (or best guess) of the above then the net amount is what you'll get taxed?

Correct that it doesn't matter when the book was originally purchased. Correct that they are really just looking for best reasonable guess. If there were additional costs, such as grading costs or signatures,  those fees would be added to your base cost and deducted from the sale price

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On 1/31/2023 at 11:43 PM, Beastfeast said:

I should have been more clear.  When I did the report for paid and shipped sales from 1/1/22 to 12/31/22, I was at about 19k.  Their report/1099 is showing me at 23k.  When I switch my search to all orders in the same time period, I get a still different number (but over 20k).  I'm trying to wrap my head around the discrepancies and also determine if I was sent a 1099 by mistake.  

The more I look at their 1099, the less it makes sense.  Their monthly breakdowns are not possible with the amount I sold, even accounting for potential fees being added.  Anyone else having something similar or am I just really thinking about this in the wrong way?

Try this.  Go to your My eBay.  Find "performance" at the top, then click on "sales".  Enter a custom date for Jan 1 - Jan 31 of last year.  See how that matches up against the 1099.  I just did that with mine, and like yours, there is a small discrepancy.  My guess is that it's some factor of a buyer buying on 12/31 and paying on 1/1 or buying on 1/31 and paying in February. 

 

The page I mentioned will show different totals for you, which might help you match things up better.. it shows a total that includes all sales 'plus' eBay collected sales tax, and it shows the total eBay fees and anything paid on shipping labels if you scroll down.  I'm pretty sure that the 1099 should show exactly what money was paid by the buyer to you EXCEPT the sales tax (which eBay collects and the seller never touches).  

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On 2/1/2023 at 8:16 AM, fantastic_four said:

At minimum just keep track of what you paid for things.  If you don't do that you're either costing yourself money by overestimating profits or risking an audit by underestimating them, and I certainly prefer to do neither of those two things.  :eek:

Keeping track of what you pay and what you sell things for is just good practice completely separate from taxes.  That way you know what you did well on so that you can duplicate that success and avoid any failures.

Yes, exactly this. I keep receipts for everything I purchase that there is ANY chance I'll be selling down the road. For online sales, most retailers have sales data going back at least a year or two, and Amazon goes back, like, waaaaay back. eBay now gives you three years of sales. So, if I don't have a receipt, there are some ways to still pull that data up. I keep screen grabs of all of that stuff in a series of folders, and I keep physical receipts in a physical folder. Most importantly, I have an Excel workbook in which I enter every purchase, the date, where I got it, etc. As much information as I have. if I don't have the information, I make an honest estimate. I have the Excel book set up so that each page total (Cost of Items Sold, Total of Items Sold, Shipping Fees, Other Fees, Shipping Supples, etc.) feeds into a summary that is set up similarly to the Schedule C tax form, and from there I can add in the calculations to try to get a rough idea of what I'm going to end up paying at the end of the year, for my income tax, my self employment tax, my local tax, etc.  I try to update the workbook every couple of weeks, or least monthly, and in doing that, it really isn't too much of a job.

Anyone waiting until the end of the year to figure up what you've spent, oof, I don't envy you. 

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You have to keep track of what you paid for things as you go or it's a nightmare.  :eek:

I have always done this for vintage comics, but I now also do it for action figures since 2020 because I sometimes sell those as well.  I mostly do it there because the margins are tighter and it's REALLY easy with those to lose money if I'm not careful, so the feedback of what I paid and what I earned is more important.

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On 1/31/2023 at 8:43 PM, Beastfeast said:

I should have been more clear.  When I did the report for paid and shipped sales from 1/1/22 to 12/31/22, I was at about 19k.  Their report/1099 is showing me at 23k.  When I switch my search to all orders in the same time period, I get a still different number (but over 20k).  I'm trying to wrap my head around the discrepancies and also determine if I was sent a 1099 by mistake.  

The more I look at their 1099, the less it makes sense.  Their monthly breakdowns are not possible with the amount I sold, even accounting for potential fees being added.  Anyone else having something similar or am I just really thinking about this in the wrong way?

Did you have cancellations or returns? Last year I sold something for 8k, but the buyer cancelled on me. The buyer never even paid, but my 1099 showed it as income. Definitely wasn't happy since I magically had an 8k "return" on my taxes that's probably a huge red flag.

Edited by Tnexus
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On 2/1/2023 at 10:10 PM, Tnexus said:

Did you have cancellations or returns? Last year I sold something for 8k, but the buyer cancelled on me. The buyer never even paid, but my 1099 showed it as income. Definitely wasn't happy since I magically had an 8k "return" on my taxes that's probably a huge red flag.

Yes I downloaded a file from ebay and they had a column for cancelations and fees so my gross went down about $5k.

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So what are my chances in getting eBay to cancel this 1099?  I've picked through all of this and I should have never received one because they're counting cancelled and non paying listings in their totals.

I'm guessing somewhere between zero and Nelson pointing and laughing?

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On 2/4/2023 at 12:20 AM, Beastfeast said:

So what are my chances in getting eBay to cancel this 1099?  I've picked through all of this and I should have never received one because they're counting cancelled and non paying listings in their totals.

I'm guessing somewhere between zero and Nelson pointing and laughing?

If you're reporting this on your Schedule C all you need to do is put the 1099 amount as your gross sales, calculate how much you actually received after fees, and put the difference as an expense and call it Selling Fees.

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On 2/3/2023 at 10:20 PM, Beastfeast said:

So what are my chances in getting eBay to cancel this 1099?  I've picked through all of this and I should have never received one because they're counting cancelled and non paying listings in their totals.

I'm guessing somewhere between zero and Nelson pointing and laughing?

I'd say about 0%. Even if they cancel it, it's probably been reported to the IRS already. It's on you to list the deductions and cancellations on your taxes.

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On 2/5/2023 at 4:17 PM, Tnexus said:

I'd say about 0%. Even if they cancel it, it's probably been reported to the IRS already. It's on you to list the deductions and cancellations on your taxes.

Agree with Tnexus. I'll be spending the next few weeks going over cost of supplies, mileage to & from PO, entry fees to shows, etc. to get my $20K+ as low as possible.

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On 2/5/2023 at 1:17 PM, Tnexus said:

I'd say about 0%. Even if they cancel it, it's probably been reported to the IRS already. It's on you to list the deductions and cancellations on your taxes.

I did a decent job of record keeping the last few years so I'm not too worried...it's more the sudden 1099 when I thought I was just under the limit.

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