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Selling equipment to former employer

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What is the name of your state? Ohio

I retired in June 1st, 2018, I have a lot of tools I will never use again and offered to sell them to my former employeer. They agreed to purchase everything but told me since I was a past employee and have a payroll ID number they would have to issue me a 1099 at the end of the year.

Is that correct? Value of the tools is around $2500. At this point wouldn't I just be another guy off the street selling something? I will need to adjust the asking price if I will pay taxes on the proceeds.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state? Ohio

I retired in June 1st, 2018, I have a lot of tools I will never use again and offered to sell them to my former employeer. They agreed to purchase everything but told me since I was a past employee and have a payroll ID number they would have to issue me a 1099 at the end of the year.

Is that correct? Value of the tools is around $2500. At this point wouldn't I just be another guy off the street selling something? I will need to adjust the asking price if I will pay taxes on the proceeds.
Even if you were just another guy off the street selling something, they'd have to issue a 1099.

(Congratulations on your retirement!)
 

Zigner

Senior Member, Non-Attorney
I'd also like to point out that the receipt of a 1099 doesn't automatically make you liable to pay tax on the money you received.
 

adjusterjack

Senior Member
I'd also like to point out that the receipt of a 1099 doesn't automatically make you liable to pay tax on the money you received.
Especially since he's likely to be selling the tools for a lot less than he paid for them.

Ok, thanks for the info. And thanks for the congratulations, retirement is a wonderful thing!
I know.

Alternative:

Take the stuff home and sell it on Craigslist. No 1099.
 

LdiJ

Senior Member
Even if you were just another guy off the street selling something, they'd have to issue a 1099.

(Congratulations on your retirement!)
Just as an FYI, a business does not have to issue a 1099 to everyone that they pay more the 600.00 to...and in this instance, many businesses would NOT issue a 1099 to someone from whom they purchased used equipment. Generally the purchase of hard goods does not require a 1099. There was some push some years back to require companies to issue 1099s to everyone, but it was soon realized that it would be a nightmare to administer and the idea was dropped.
 

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