Quote:
Originally Posted by Nebulus
Got my first 1099K this year from paypal for selling > 20k in mostly collectibles. It's been a real struggle and many hours of research trying to figure out how to deal with this. About 6k sales were coins I was "gifted" from my father I had no cost basis for. Another 12k were trading cards and the rest personal household items.
Here is what I ultimately decided on..After going back and forth whether to fill out a schedule C or D I decided to go with D. All the trading card sales I'm going to treat as investments and report those gains minus fees/asset costs/shipping. Those are going to be a mix of short/long-term gains. Since the coins weren't inherited and I have no cost basis for them I'm going to use my best estimate at the cost of the proof set ect. at the time of purchase or use the face-value of the coins. These will then be treated as long-term capital gains minus expenses. Personal sales of household items included in my 1099K Im just not reporting as virtually everything was reported at a loss..
Thought on this plan?
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The gift allowance for 2021 was $15k and gift taxes in excess are paid by the giver.
If you received $6k worth of coins from your father as a gift, that's not taxable to either of you.