Trying to help my sister with her questions on the new reporting requirement for sales through the on-line mediums like E-Bay or Etsy that are in excess of $600. My readings of this new reporting requirement that was part of the 2020 American Rescue Plan Act, is that total sales for the year under the same SSN if $600 or more will be reported to the IRS and the on-line seller by the Third Party Settlement Organization (such as PayPal) on form 1099-K instead of the 1099-NEC. If this is part of a business then it simply affirms sales and all expenses are accounted for on the schedule C. But what if its someone simply selling personal items that the total exceeds the $600 threshold. Will this have to be reported as ordinary income or will the cost basis of the items sold be taking into account first?
Viewing 1 post (of 1 total)
The forum ‘Other Tax Topics’ is closed to new topics and replies.