FORM 1099-K from selling business equipment, online. How to report (and not double-count the sales on Schedule C)

Forum|Forum|3 years ago
February 1, 2023
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Hello, I'm a freelance musician and have filed Schedule C for my musician income and expenses for years.

Dor the first time, in 2022, I am now receiving a 1099-K from an online used gear platform (reverb.com) on which I sold 5 pieces of music equipment during the year for gross proceeds of $9,025.

Normally, I would have already reported the sale of these pieces of equipment as I went through my asset summary, and I would normally have a gain on sale, because I depreciate my business equipment.

But, if I put in the 1099-K as proceeds from these 5 sales, they would be double-counted.

Do I take the proceeds from these 5 sales made on reverb.com out of my asset summary? so as to not double count the proceeds? And if I do that, I do I not have a gain on sale? Stumped.

Best answer by Vanessa A

No, if you already have these sales accounted for in your normal accounting method, you do not need to enter the 1099-K, you will just keep it for your records.

Vanessa AAnswer

No, if you already have these sales accounted for in your normal accounting method, you do not need to enter the 1099-K, you will just keep it for your records.

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holdsgAuthor

thank you,

I suppose I would just have to prove (I can do that no problem) how my normal accounting methods capture the proceeds from those sales already, independently of the 1099-K.

Appreciate the answer, and hope it can help others in similar situations.