Sold Your Old Couch at a Loss? The 1099-K Doesn’t Know That. What Casual Sellers Must Do When the Form Overstates Income

The IRS will require a new form starting this January specifying how much you received for an old item (e.g., a couch), while not accounting for what you paid for it years ago. Tax outcomes between now and April will depend on documentation you may still need to locate and file. Overall, the update is a process and compliance headwind rather than a market-moving economic development.