MA requiring 1099-K for all eBay sales? (Boston: income, property tax)

[katzenfreund]

Originally Posted by BostonMike7

https://www.mass.gov/service-details...-organizations

For 2017, MA has begun requiring a 1099-K to be filed for third party payment transactions.


How does this apply to me? I sold about $4k worth of excess car parts through eBay last year to fund the purchase of more parts. All parts are sold at a loss.

Received a 1099-k today from PayPal showing the amount of my "sales" for $4k. Now I plan to talk to my tax person about this, but prior to that, has anyone ever dealt with this sort of thing? How do o prove a supercharger kit i paid $6k for 10 years ago was sold for a loss at $3k if I no longer have paperwork showing my purchase?

I received this surprise today also. I resold some personal items on Ebay and ALL were purchased for way more than what I sold them for. On top of that, the postage cost to ship the item, is included in this "income". Guess this will end my sales on Ebay. Even the few $ I received from some people in a FB for postage are included in this amount... I was giving them stuff, only charged postage. Of course I did not save receipts because I bought these items for personal use.

[AtkinsonDan]

Does this issue stem from the fact that Paypal setup an office in Boston a few years ago which establishes a nexus in Massachusetts as far as taxation matters are concerned?

https://www.bizjournals.com/boston/b...-fig-card.html

[katzenfreund]

Originally Posted by AtkinsonDan

Does this issue stem from the fact that Paypal setup an office in Boston a few years ago which establishes a nexus in Massachusetts as far as taxation matters are concerned?

https://www.bizjournals.com/boston/b...-fig-card.html

I could be wrong but I do not think so. They are just trying to go after the little guys. I can understand that, but the thing is that PP is reporting ANY kind of payments you received, even if you gave stuff away for free and were only reimbursed for postage, or sold stuff for pennies on the $ of your own personal used items on Ebay.... so then it is up to you to have proof for all of this... I did not know this was coming and did not save any receipts

https://learn.sovos.com/blog/massach...l-requirements

[BostonMike7]

Apparently it was passed nov 29th of 2017 and made retroactive. It also appears to have been proposed by Baker

So now you need to file a schedule C form 1040 and itemize. Shipping costs, PayPal fees, eBay fees, gas to drive to post office, receipts for everything you bought and sold for s loss....

A little more of a heads up would have been nice. I would have just thrown most of the stuff in the trash.

[LilyMae521]

Goodness, don't throw it in the trash. Give it to a thrift store and take the deduction. :-)

[BostonMike7]

Unfortunately most of my sales are not items that would be of use to a thrift store....unless they want a set of 30 year old hydraulic lifters from a small block Ford.

[katzenfreund]

Originally Posted by BostonMike7

Apparently it was passed nov 29th of 2017 and made retroactive. It also appears to have been proposed by Baker

So now you need to file a schedule C form 1040 and itemize. Shipping costs, PayPal fees, eBay fees, gas to drive to post office, receipts for everything you bought and sold for s loss....

A little more of a heads up would have been nice. I would have just thrown most of the stuff in the trash.

Yes, that really makes me the maddest. If I had known, I would have donated my stuff to a thrift store. No “deduction” for me because I do not itemize, but now I have to pay to amend my already accepted taxes etc. i did not know about this, have no receipts...it isn’t a business for me, was selling stuff I did not use at a loss anyway. this is just wrong....they should have notified the public at the beginning of the year, so they save at least receipts for postage etc!

[AtkinsonDan]

Originally Posted by katzenfreund

Yes, that really makes me the maddest. If I had known, I would have donated my stuff to a thrift store. No “deduction” for me because I do not itemize, but now I have to pay to amend my already accepted taxes etc. i did not know about this, have no receipts...it isn’t a business for me, was selling stuff I did not use at a loss anyway. this is just wrong....they should have notified the public at the beginning of the year, so they save at least receipts for postage etc!

It seems to me that Massachusetts government is trending very anti-individual these days. Maybe it is time to return to garage sales and cash transactions?

[katzenfreund]

Originally Posted by AtkinsonDan

It seems to me that Massachusetts government is trending very anti-individual these days. Maybe it is time to return to garage sales and cash transactions?

Yes!!!
I will only do yard sales or CL for cash anymore. I decluttered last year and sold off more than I usually would, but it amounted to about $1000 and a third of that went to postage. Of course I did not keep the receipts for the postage because I never expected to need them, past the point of the item getting delivered to the buyer. The cost of those items was usually about double or tripple of what I sold them for. But... no receipts. Ugh.

[BostonMike7]

My gripe is the rules are changed in the 11th hour and applied retroactively with no notice until you get the 1099k in the mail.

i knew about the $20k and 200 sales rule, but since I was literally clearing out the garage, I didn't think to keep better records.

Fortunately most of my shipping was paid via CC, and I have records of my eBay and PayPal fees. But I have no receipt for say, an alternator bracket I paid $60 for 15 years ago and sold for $30.