Dear Tax Guy, I am retired with Social Security and a state pension. Over the last 30 years I’ve accumulated a lot of “junk” from eBay
EBAY,
+3.26%.
Now, I’m also trying to clean out my house, and sell it at cost or a small profit. With eBay now sending out 1099s, I believe I have to pay taxes on the profits.
Is it possible to use the income figure on the 1099, say $6,000, and contribute this amount to an IRA rather than claim the small profit and pay taxes? Of course, I’d be coming up with the $6,000 to deposit in the IRA and getting the tax deferral. Determined to declutter *** Brief update on the following reply. The Internal Revenue Service on Dec. 23 announced a pause on implementation of the new reporting rules. The existing reporting rules remain in effect, meaning the threshold of $20,000 in payments from over 200 transactions stays in effect, the IRS said.***Dear Determined, All you want to do is clean out your house and make a tax-efficient move with your cash. All I want to do is give you a clean answer. But I can’t. Your question is touching a hot-button topic and an open question about what tax forms and tax obligations small businesses and potentially many regular people will face during the approaching tax season. In its stacks of documents, the Internal Revenue Service has the Form 1099-K. This is a form that payment platforms generate when a payment r …