Are you on Ebay or Esty? New 1099K forms will be coming your way
Do you sell things on eBay and maybe Etsy or similar sites? If you are, you need to know about an important change that’s coming in 2022. So not effective for 2021, but starting in 2022, if you sell more than $600 on these sites, you will be receiving a 1099K.
This form is going to the IRS to confirm that you are declaring the income on your tax return. I foresee a lot of problem areas with this form, but the focus of the IRS has been more on forcing the compliance efforts on the vendor, rather than the person who’s supposed to be reporting the income. Let’s talk about what the problem might be.
If you’re selling through a merchant provider, you’re going to get a 1099 K for those but those are typically going to be sales receipts. If you’re selling through eBay, what if you’re selling the personal stuff around your house? You’re just selling some old books that you’ve accumulated over the years. What if you’re selling stuff that isn’t a business, it’s a personal product?
Well, those questions are a little unknown at this point as to how we’re going to answer that but know that if you are selling things for a business purpose, you might need to get it legit for 2022. If you want to look at how those taxes we can help, we’ve helped many businesses set up and formalized so that they can take advantage of a good tax strategy, rather than just leave this to chance. They will find out now that this new regulation and the 1099K will be your tattletale.
So make sure you’re legit for 2022. If you need help lining up or business strategy for something that may have been kind of a hobby in the past, we’re here to help. Please contact us and of course, please subscribe to our YouTube page below and we hope to see you soon.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.