Do Resellers Pay Taxes? 1099-K Rules for 2026, Sales Tax Permits, Resale Certificates and Write-Offs for Estate Sale Flippers
What resellers owe on profit, the 2026 1099-K thresholds, self-employment and sales tax, resale certificates, write-offs, and a record-keeping template.
Yes. Resellers pay income tax on their profit, not their total sales, and most flippers who sell regularly also owe self-employment tax once net earnings reach $400 (IRS). For 2026, payment apps and marketplaces send a Form 1099-K once you pass $20,000 and 200 transactions, but you must report all income whether or not a form arrives (IRS).
Last verified: November 2, 2026 against IRS.gov and the Texas Comptroller. Tax rules change; check the linked sources before you file. This is general information, not tax advice. Talk to a CPA or enrolled agent about your situation.
If you buy at estate sales and resell on eBay, Poshmark, Facebook Marketplace or from an antique booth, this guide covers what you owe, the 2026 1099-K rules, sales tax and resale certificates, write-offs, and how to keep records when estate sales don't hand out receipts. If you inherited items and are selling them, read do you pay taxes on estate sale proceeds instead. That situation works differently.
Quick summary
| Question | Short answer |
|---|---|
| Do I pay tax on everything I sell? | No. You're taxed on profit: sale price minus what you paid and your costs |
| When do I get a 1099-K? | Marketplaces and payment apps: over $20,000 and more than 200 transactions. Direct card payments: any amount |
| No 1099-K means no tax? | No. All income is reportable |
| Self-employment tax? | 15.3% on net earnings, if you're in business and net $400 or more |
| Sales tax? | Marketplaces usually collect it online; booth and in-person sales are often on you |
| Resale certificate? | Lets you buy inventory tax-free in states that allow it, if you hold a sales tax permit |
Hobby or business?
The IRS treats you differently depending on whether you're running a business. In general, you're in business if you sell regularly, try to make a profit, and run it like a business (records, a separate account, time spent sourcing). Someone who cleans out a closet once a year is probably not. The IRS lists the factors it looks at in its hobby vs. business guidance.
Why it matters:
- Business: report income and expenses on Schedule C, deduct costs, and pay self-employment tax on net profit.
- Hobby: income is still taxable, but hobby expenses generally aren't deductible.
- Selling your own used stuff at a loss (a couch you paid $1,200 for, sold for $200) generally isn't taxable income, because there's no gain.
Most estate sale flippers who source every weekend are in business. Treating it that way usually saves money because the costs become deductible.
You're taxed on profit, not sales
A worked example. You buy a brass lamp at an estate sale for $40 and sell it on eBay for $300. Fees are $40 and shipping supplies are $20.
- Sale price: $300
- Minus cost of the item: $40
- Minus platform fees: $40
- Minus shipping and supplies: $20
- Profit: $200
That $200 is what goes toward income tax and self-employment tax, not the $300.
Tracking costs when estate sales don't give receipts
This is the most common reseller question. Many estate sales hand you a handwritten total or nothing at all. Practical options:
- Photograph the item and its price tag before you pay.
- Ask for a receipt. Many companies use card readers that email one.
- Log each purchase the same day: date, sale, item, price paid.
- Pay by card when you can so there's a bank record.
- Keep a running spreadsheet and match it to your sales.
The IRS says to keep records that support your income and deductions, and it explains what counts in Publication 583. Resellers on Reddit describe the same struggle. One flipper who got a 1099-K after selling 214 items, mostly estate sale finds, said they hadn't kept receipts for the first 60 and their tax preparer wouldn't put an estimated cost in writing (r/Flipping, June 2026; one seller's account). Start logging now so you're never in that spot.
If you use EstateSaleFinder to plan your weekend, the Ai Appraiser can help here too. A scan gives you a dated photo of the item and a suggested value range from recent sold listings. It's a pricing suggestion, not a tax record, so still note what you actually paid.
The 2026 1099-K rules
After several years of changing thresholds, the One, Big, Beautiful Bill reinstated the older rule. Payment apps and online marketplaces aren't required to file a 1099-K unless your payments for goods exceed $20,000 and more than 200 transactions (IRS).
Important details from the IRS (IRS):
- Platforms can still send one below the threshold.
- Card payments you take directly (your own card reader at a booth or pop-up) get a 1099-K from your processor no matter how small.
- Forms are due to you by January 31.
- All income is reportable whether you get a form or not.
- Some states set lower reporting thresholds, so you may get a state copy even below the federal line.
If you get a 1099-K that includes personal items sold at a loss, or money that wasn't a sale, the IRS explains how to handle it at IRS.gov/1099khelp.
Self-employment tax
If you're in business and your net earnings from self-employment are $400 or more, you usually owe self-employment tax (IRS Topic 554). The rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare, figured on 92.35% of net earnings. You can deduct the employer-equivalent half when figuring adjusted gross income (IRS).
Using the lamp example: $200 profit × 92.35% × 15.3% ≈ $28 in self-employment tax, before income tax. If you expect to owe more than a small amount, you may need to make quarterly estimated payments.
Sales tax: who collects it?
Sales tax is a state (and sometimes local) tax, separate from income tax.
- Online marketplaces like eBay, Etsy and Poshmark generally collect and send sales tax for you in states with marketplace facilitator laws.
- Your own sales (an antique booth, a pop-up, Facebook Marketplace cash deals, your own website) are often your responsibility. That usually means getting a sales tax permit, collecting tax, and filing returns.
- Booth malls vary. Some collect and file for dealers; others don't. Ask yours, in writing.
Rules differ widely, so check your state's tax department before you start. Our antique booth side hustle guide and are antique booths profitable cover the booth side of the business.
Resale certificates at estate sales
A resale certificate lets a business buy inventory without paying sales tax, because the tax will be collected when the item is resold. In Texas, for example, a buyer gives the seller Form 01-339, which requires a Texas taxpayer number. A sales tax permit number alone isn't a substitute, and if you use the item yourself instead of reselling it, you owe the tax (Texas Comptroller).
At estate sales:
- Not every company accepts them, and some charge tax regardless. Ask before you check out.
- Bring the completed certificate for your state, plus your permit.
- Only use it for inventory. Items you keep are taxable.
- Some states don't have a sales tax at all, so certificates don't apply there.
Common write-offs for resellers
If you're in business, these are common deductible costs. Keep a record of each.
| Expense | Examples | Notes |
|---|---|---|
| Cost of goods sold | What you paid for items you sold | Deduct when the item sells, not when you buy it |
| Platform and payment fees | eBay final value fees, PayPal, Square | Usually shown on your platform's annual report |
| Shipping and supplies | Postage, boxes, tape, labels, scales | Keep receipts |
| Mileage | Driving to estate sales, the post office, your booth | 2026 business rate: 72.5¢/mile Jan.–June, 76¢/mile July–Dec. (IRS) |
| Booth rent and commissions | Antique mall rent, mall commission | Keep monthly statements |
| Tools and subscriptions | Pricing tools, listing software, a phone used for business | Business-use share only |
| Home office | A space used regularly and only for the business | Has strict rules; see IRS guidance |
Year-end checklist
- Download annual sales reports from every platform
- Match any 1099-K forms to your own totals
- Total the cost of every item you sold this year
- Total fees, shipping and supplies
- Finish your mileage log
- Gather booth rent statements and confirm sales tax returns are filed
- Count unsold inventory and what you paid for it
- Set aside money for taxes, or plan estimated payments
Simple record-keeping template
Copy this into a spreadsheet. One row per item.
| Date bought | Where (sale name, no address) | Item | Paid | Date sold | Platform | Sold for | Fees | Shipping | Profit |
|---|---|---|---|---|---|---|---|---|---|
More on building a profitable reselling routine: how to make money reselling estate sale finds, flipping 101 and how much money you can make reselling. When you're ready to source, find estate sales near you on EstateSaleFinder.
FAQ
Do eBay resellers pay taxes?
Yes, on profit. eBay usually collects sales tax for you, but income tax and self-employment tax on your profit are yours to report.
What is the 1099-K threshold for 2026?
For payment apps and marketplaces, over $20,000 and more than 200 transactions. Card payments you take directly have no minimum. Platforms may send forms below the threshold.
Do I have to report income if I didn't get a 1099-K?
Yes. All income is reportable whether or not you get a form.
Are resellers tax exempt?
No. A resale certificate only lets you skip sales tax on inventory you'll resell, in states that allow it. You still owe income tax on profit.
Do resellers pay sales tax?
On marketplace sales, the marketplace usually collects it. On your own in-person or website sales, you're often responsible. Check your state.
How do I prove what I paid at an estate sale without a receipt?
Keep a dated log, photos of items and price tags, and card or bank records. Ask the company for a receipt when you can.
Can I deduct mileage to estate sales?
If you're in business and the trip is for sourcing, generally yes. Keep a mileage log with dates, destinations and purpose.
Sources:
- IRS: Understanding your Form 1099-K
- IRS: Form 1099-K FAQs (One, Big, Beautiful Bill threshold)
- IRS Topic No. 554: Self-employment tax
- IRS: Self-employment tax (Social Security and Medicare)
- IRS: Standard mileage rates
- IRS: Know the difference between a hobby and a business
- IRS Publication 583: Starting a Business and Keeping Records
- Texas Comptroller: Resale certificate FAQ
- r/Flipping: Got a 1099-K with zero receipts (June 2026, anecdote)
Sources checked November 2, 2026. General information, not tax advice. Talk to a CPA or enrolled agent.
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About the author
Andy
Founder, EstateSaleFinder.net
Hi, I'm Andy — a retired commercial photographer turned developer with a five-year (and counting) obsession with estate sales. I started EstateSaleFinder.net because I knew there had to be an easier, smarter way to find and list estate sales. Now I get to chase treasure and build the tool I always wished existed.
