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Level 1
posted Mar 12, 2023 2:51:29 PM

Sold stuff at cost, how do I properly input this into TurboTax

I bought $30K worth of computer hardware for a not-for-profit and sold it to them at cost. 

 

Retail isn't something my business normally does, so I'm not sure how to put this in.

 

I'm recording the expense under "Enter your miscellaneous expenses," but I'm coming out backward on this deal when I input the $30K income from the 1099-NEC that the not-for-profit sent to me.

 

What is the correct way to input this income and expense?  It should be a total wash, no?

 

I'm using Turbotax Premium, for some reason that's not a choice in the "choose the edition" selection as I make this post.

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1 Best answer
Expert Alumni
Mar 12, 2023 7:07:44 PM

If they sent you a 1099-NEC using your Social Security #,, you need to report it on a Schedule C as part of your personal tax return.  Report the $30,000 of income, and then report $30,000 of expense.  Your net income will be $0.00.  You will need to use TurboTax Self-Employed in order to report the Schedule C expenses.   If they used a business tax ID on the 1099-NEC, then just report $30,000 of revenue, and an offsetting $30,000 expense on your business return.  It will be a wash.  

2 Replies
Expert Alumni
Mar 12, 2023 7:07:44 PM

If they sent you a 1099-NEC using your Social Security #,, you need to report it on a Schedule C as part of your personal tax return.  Report the $30,000 of income, and then report $30,000 of expense.  Your net income will be $0.00.  You will need to use TurboTax Self-Employed in order to report the Schedule C expenses.   If they used a business tax ID on the 1099-NEC, then just report $30,000 of revenue, and an offsetting $30,000 expense on your business return.  It will be a wash.  

Level 1
Mar 13, 2023 11:26:28 AM

I double checked my figures and found that I had a mistake on my end.  Once I corrected this I found that the results that TurboTax was giving me was correct.

 

Thank you for your input.