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beckagrosst OP t1_j25pu5q wrote

Reply to comment by Werewolfdad in How should I deduct cost of goods sold for gifted household items for eBay taxes? by beckagrosst

I sold personal items (laptops, phones, clothes, etc.) that I used in my apartment. I sell as a hobby, but made a few thousand dollars in sales this year.

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Werewolfdad t1_j25q31c wrote

You can’t deduct expenses for a hobby

So you just sold random stuff you owned? That doesn’t require any tax form let alone a business tax return

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beckagrosst OP t1_j25qkjf wrote

eBay issues a 1099 for sales more than $600, which I have significantly gone over. I have to report this income to the IRS in 2022. My question is regarding how to determine cost basis for old gifted items that I have decided to sell.

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Werewolfdad t1_j25qnj9 wrote

The 1099-k rules were delayed another year

And It’s not income

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beckagrosst OP t1_j25r1o5 wrote

>As a result of this delay, which follows over a year of eBay Government Relations advocacy on behalf of the eBay community, only sellers who: 1) exceed the previous threshold of $20,000 and 200 transactions, 2) that were subject to backup withholding or, 3) whose states of residence have a lower reporting threshold will receive a Form 1099-K.

I am in a state whose reporting threshold is $600, so I think this still applies to me?

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Werewolfdad t1_j25rhdm wrote

Your post is asking about federal rules and you didn’t include your state

Regardless, your cost basis in a gift is either the donors adjusted Basis or FMV, whichever is “worse” for you, so it doesn’t matter since you don’t have a gain

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beckagrosst OP t1_j25rpnp wrote

I see. So basically I did not gain and therefore don't show a profit on this sale?

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Edit: The state is VA

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