Understanding 1099-K on eBay: Do You Owe Taxes When Selling Personal Items?

I sold some personal items on eBay last year. Do I owe tax on the sales?

Yes, provided you have gain from those sales.

The $600 reporting threshold for third-party settlement organizations to send a Form 1099-K to payees is gone. The OBBB axed it before it took effect.

Instead, third-party networks, such as PayPal and eBay, send 1099-Ks to payees with over 200 transactions in a year who were paid over $20,000 for goods or services.

Even if you didn't get a 1099-K for money received through a website or app for selling goods or services, you're still taxed on the gain (money received less tax basis of the sold item) and must report it on your Form 1040. It will likely be capital gain.

Losses from selling personal property aren't deductible.