Ebay 1099k

[billb621]

I received a 1099k from ebay, I reproduce rubber parts for vintage motorcycles, and sell them on ebay, 

How do I enter the expenses  for the chemicals I bought to make these parts and can I add labor for the time I spent to make them

[PattiF]

You will need to enter Form 1099-K and file a schedule C for your business. You will enter the chemicals that are used as supplies or the cost of goods sold. You are not able to deduct your own labor. Other expenses could include office expenses such as internet access, paper, and ink. You may have vehicle expenses including mileage. If you use an area of the home for the business exclusively, you can include a home office expense.

To enter this in TurboTax as a schedule C

• Type 'schedule c' in the Search area,
• Then click on 'Jump to schedule c' to make your entries.

This TurboTax Help article has more information about Schedule C expenses.

[billb621]

Thank you for responding, so the 1099 was for 9900.00 and I have 4800.00 in supplies to make the parts and now I will have to pay the taxes on the difference?, i have a lot of time invested in making these parts and really dont have any other deductions except maybe some shipping supplies and printer supplies  I do have a shop behind my house that i do all this  work in, as well as having to heat it and elect to run equipment and the equipment I have to perform this task, no vehicle needed, 

[LeonardS]

You may deduct all expenses that are necessary and common to make the parts you sell on eBay.  The costs of shipping supplies and printer supplies related to your business activity are deductible.  However, you may not assign a dollar value to your time spent producing your parts.

This link What self-employed expenses can I deduct? has information you may find useful is determining expenses you can deduct as part of your business 

[bshannon264]

I’m just wondering if I am able to get some help with a similar situation? I followed the instructions that Patti suggested as far as jumping to the schedule C info, but when I do that it brings up questions about dividends received? I’m just trying to figure out how to enter my expenses that I paid for items when purchasing that I ended up re-selling for profit and received a 1099K for. I am already set up to pay for the self-employed turbo tax online…thanks!!

[DianeW777]

That may happen if you were at a particular section and TurboTax doesn't think you were finished with that yet.  You can also reach your Schedule C business activity by using the information below.

1. Sign into your TurboTax Account
2. Under Income and Expenses > Scroll to Self-Employment > Select Show More if necessary > Select Self-employment income and expenses
3. Select Revisit or Start > Edit beside your business or begin your business entry
4. Scroll to Income and add or start to enter your income
5. There is no section to enter a Form 1099-K so type cash as the type of income then

@bshannon264 

[bshannon264]

Thank you. I had already began working on my 1099-k info and added some expenses like supplies, etc but am not finding how to add money I spent to purchase the items I sold. I initially tried to add it under inventory until I realized that is not for items that have sold. I just knew it was showing my income too high and I can’t figure out how or where to input the cost of the things that were purchased. I did type in copy C and clicked on the jump to link but it immediately asked me about dividends I received….it’s very frustrating 😭😭😭

[RobertB4444]

@bshannon264  Inventory is where you will enter the cost of the things that you bought for sale. 

TurboTax will start by asking for your beginning and ending inventory.  That has to do with the amount of stuff you had for sale that didn't get sold yet.  You start by putting in the amount of stuff you had on hand left over from last year (if you started your business in 2021 that amount is zero).

Then it will ask for the amount of stuff that you bought but hadn't sold yet by the end of the year.  If you sold everything that you bought then this amount is zero as well.  If you still had some stuff lying around then you enter the amount that you paid for that stuff.

The next screen has the place to enter what you spent.  You will enter the total you paid during 2021.  If you put that you still had inventory lying around at the end of 2021 on the previous screen the system will not let you deduct a product you haven't used yet so it will subtract your closing inventory from what you spent for the year.  And then it will deduct the total that is left from your income.  

[bshannon264]

Oh my gosh! THANK YOU SO MUCH!! I didn’t realize I needed to complete that area to get to what I have been trying to find! I’m new at this as you can see so you have no idea how much this comment has helped! I will try this tomorrow and see if I can complete it! Thanks, again!!