Issues with my eBay 1099 form

Submitted by Various-Category4642 t3_10q76oo in personalfinance

I just looked at my eBay 1099 form and it says that I made significantly more than what I actually did. Now, this is most likely in part to the eBay fees as well as I had to refund and cancel quite a few orders because of scammers. I think those numbers are shown somewhere on eBay, but how do I show that on my taxes/to the IRS?

Plus, not everything I sold was for a profit. So what do I need to do so I'm not paying more than what I owe?

2

Comments

You must log in or register to comment.

nozzery t1_j6o8yz5 wrote

The best course of action would be to put together a spreadsheet with each item and your best estimate of cost basis (how much you paid), acquire date, as well as sale dates and amounts. If you don't want to do that then yes cost basis is assumed $0 and you pay taxes on the full amount.

1

Various-Category4642 OP t1_j6oc4cc wrote

I have probably about half the stuff but since eBay only started saving older sales very recently I think some is lost.

I'm definitely not paying the full amount shown since refunds and fees are probably half the number that they gave me

1

nozzery t1_j6ocec1 wrote

It isn't lost, it's just in your email. Go look for it. Don't be lazy. If you don't find it, you are paying the full amount, because that's the 1099 that the IRS will receive. Adjust income without documentation at your own risk

1

Various-Category4642 OP t1_j6ocx2z wrote

I found how much of the total is just fees and refunds/cancellations. I have the majority of sales but there's some from early last year buried somewhere. I'll find em

1

nothlit t1_j6o9bzv wrote

Are you in business selling stuff on eBay, or is this all related to personal sales of your own used property?

1

Various-Category4642 OP t1_j6oc8ur wrote

Personal sales on ebay

1

nothlit t1_j6ocv8d wrote

Was everything sold at a loss, or was there a mix of gains and losses?

1

Various-Category4642 OP t1_j6od8h7 wrote

There were a couple items sold for a pretty large profit (2 or 300 bucks profit before fees and shipping) but most was for a loss or breaking even

1

nothlit t1_j6oewxx wrote

For the items sold at a loss, combine them together and report as indicated here under "personal items sold at a loss."

For the items sold at a profit, report them on Schedule D.

Schedule C (Profit or Loss from Business) is not needed since these were personal use items.

1

Various-Category4642 OP t1_j6ohxwo wrote

Where would I report expenses such as fees and cancellations that were included in the total on the form?

1

nothlit t1_j6oir04 wrote

https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general

> You should include all fees (e.g., selling fees, payment processing fees, etc.) associated with the sale of your personal items in your basis when computing your gain or loss on the sale. See Publication 551 for additional information. In general, you should adjust your gain or loss on the sale of your property by the amount of expenses and fees paid to facilitate the sale.

1

BouncyEgg t1_j6oc0ks wrote

  • Sale price - your cost (- fees) = Gains

1099k reports sale price.

You report your cost (and fees).

You report your gains (if any).

1

Various-Category4642 OP t1_j6odfu5 wrote

Simple enough. I have most of the numbers but will I be punished with an iron fist if I'm a couple bucks off? Always a worry in the back of my mind

1

BouncyEgg t1_j6oe0vm wrote

> will I be punished with an iron fist if I'm a couple bucks off?

This is a common misconception with the IRS.

The IRS is more like a very understanding parent.

Understanding parents know that their children are going to mess up. Understanding parents are not out to deliver punishments out of joy/fear. Understanding parents just want their children to follow the rules.

The IRS is very reasonable. The IRS wants to work with the Taxpayer.

Just don't do illegal things like intentionally evade the rules.

1