youtube.com/@retiredandreselling1261 Thank you for posting your question to the previous video on this topic. I found the mistake and corrected it. Since I couldn't edit within the YT video, I had to take it down and re-shoot it. This video shows the correct way to report the sale of a personal item for a loss on IRS Form 8949. Thanks again!
Not really. When done properly, either method leads to a 'net zero' gain. Since your revenue is already reported to the IRS on Form 1099-K, you're simply reporting that revenue with the offsetting costs. That way, you aren't paying taxes on the revenue, since you never realized a gain in the first place. The IRS does not care which method you use.
@@teachmepersonalfinance Thanks for your response. Is there any difference at all - even small? It seems odd they would create two reporting methods for the same thing. Thanks for your time.
Using form 8949 seems a lot more complicated, needing purchase dates, etc. I think if there's no difference, I would go with Schedule 1. It is sickening that they dropped the threshold from $20k to $600 (in 2024). I've had this stuff in my garage for 6 yrs & finally getting around to selling it... now I have to give eBay my ssn & deal with an extra form at tax time. Also, I heard the 1099-K includes all the eBay fees. Is that correct?
@@vickijd22 Yes. I believe the 1099-k from eBay is the entire gross amount including shipping and eBay fees. It's up to you to subtract all that to find out the net profit or, in many people's cases, loss from their own sale of personal items.
youtube.com/@retiredandreselling1261 Thank you for posting your question to the previous video on this topic. I found the mistake and corrected it. Since I couldn't edit within the YT video, I had to take it down and re-shoot it. This video shows the correct way to report the sale of a personal item for a loss on IRS Form 8949. Thanks again!
What are the implications of choosing to report 1099-k loss on Schedule 1 (Form 1040) vs Form 8949? Is there a practical difference? Thanks.
Not really. When done properly, either method leads to a 'net zero' gain.
Since your revenue is already reported to the IRS on Form 1099-K, you're simply reporting that revenue with the offsetting costs. That way, you aren't paying taxes on the revenue, since you never realized a gain in the first place. The IRS does not care which method you use.
@@teachmepersonalfinance Thanks for your response. Is there any difference at all - even small? It seems odd they would create two reporting methods for the same thing. Thanks for your time.
@@lma6719 Literally no difference. I pulled down all of this from the IRS website: www.irs.gov/businesses/what-to-do-with-form-1099-k#personal
Using form 8949 seems a lot more complicated, needing purchase dates, etc. I think if there's no difference, I would go with Schedule 1. It is sickening that they dropped the threshold from $20k to $600 (in 2024). I've had this stuff in my garage for 6 yrs & finally getting around to selling it... now I have to give eBay my ssn & deal with an extra form at tax time. Also, I heard the 1099-K includes all the eBay fees. Is that correct?
@@vickijd22 Yes. I believe the 1099-k from eBay is the entire gross amount including shipping and eBay fees. It's up to you to subtract all that to find out the net profit or, in many people's cases, loss from their own sale of personal items.