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ebay is going to ask you for your social security number federal id number so that needs to match however you're reporting those sales right in this video we're going to talk about the new rules for ebay and the 600.1099k for sales we did a separate video and we did general you know we include ebay and cellular paypal et cetera but this we're focused strictly on ebay what's the big change between last year and this year so now if you on ebay if you as an individual are selling anything from your house or from business whatever it may be if you sell over 600 through ebay they're going to send you a 1099k at the end of the year and i understand that this year when you get to 600 ebay is going to ask you for your social security number federal id number so that needs to match however you're reporting those sales right so once you hit that point you have to be ready to give them your social or federal id number and know that this is going to be reported to the irs so whatever they give you on this 1099 k whatever dollar amount the irs is gonna know about it so even if you're selling your kids clothes it is going to be reported if you're selling through ebay and with that at the end of the year you know before you had to have over twenty thousand dollars in transactions or in dollars or two hundred transactions now it's six hundred dollars cumulative for the whole year and then when they give you this information you said it's going to be reported the irs right you're at the end of the year going to get a 1099 k right and that 1099k is going to be all the sales it's not going to include any returns it's not going to include any expenses it's the gross sale and and then let's take the next step we get to the end of this year and you get a 1099k and i get a 1099k and we're selling the same stuff you know you're selling the kids clothes and the bicycles and all that because you know they've grown out of it right but i have a resale shop and i sell the idea so let's say i sell some bicycles and some kids clothes on your 1099k you don't you still have to report it on your channel yeah so even if it's individual household stuff you still have to report it on your 10 40. 99 of the time if i'm selling my kids clothes it what i paid for it is less than what i sold it for so i just have to keep track of okay get a good idea of how much i paid for that stuff and then whenever it comes time to reporting on the tax return you can put the income on and then take the take an expense against it so you're not paying taxes on this stuff right it's a personal household item but and probably there are probably the two most important things is one if you get a 1099k and it's just stuff you're selling you still got to report that on your 1040 and later in the year we'll cover how to report that when they come out with the instructions but it's last reported on your 1040 as long as you keep track and know that your cost is greater than what you sold it for right it's not going to cause you to pay any tax so your tax liability would still be zero but then for me i'm in a trader business right so technically you should have already been tracking your income yeah so nothing should be changing if you're a trade in business nothing should be changing for you but if you haven't been tracking your income as you should and reporting it on your tax return now you're going to and i think that's going to be the big surprise because you know for example i go to rural auctions on farms and i know there's some people there that they're retired but what they do on the side they don't have an antique shop out on the street they're buying and they're reselling it so in that case that person right there has a trade or business going on and they may have because they never got to the 20 000 limit it may have never got a 1099k so i think whether it's like you just selling your own personal stuff or like me you know buying stuff and reselling it on ebay in that case if i'm buying and reselling i'm probably gonna do that unless i'm making a profit at it right so but the other thing is that uh it's also that if i'm doing that i should be able to get my expenses so i think to take away here and debbie hop in here i think and let's just name it number one is at for a profit or loss nothing changed correct there what you've been doing hasn't changed it's whether or not you've been reporting it on the tax return and if you had a profit whether it was you selling an item personally or me selling them if you have a profit then you have to disclose that profit yes that's taxable that's true of anything if i buy an antique for ten dollars and we sell for 15 even though it's that one item i still technically supposedly technically yeah all along these rules haven't changed it's just now it's actually going to be um tracked by the irs which is the whole point of why they're doing this is because they're missing out on a lot of tax dollars and especially right now with these little gig economies starting up and what i mean by a gig you know you're you we were at staying at home from the pandemic we started creating these little you know crafts etc uh or where we started reselling stuff um but the point of it is we're going to see a lot more of these this year so any other comments debbie no i think that this is going to make people really track their income and expenses a lot more than they ever have yeah but again nothing the reporting requirement and when to pay taxes has not changed it's just that this reporting requirement has happened i hope this helps please subscribe and we're going to do some other videos on like paypal and some of the other platforms and thank you for listening see you again have a great day and share this with your friends [Music] you