Note - this is a very simplified example of an eBay sale. It is based on the premise that your inventory/purchases cost more than their sale price. For example: I purchased a sweater for $100 last year. This year I sold that sweater for $30 on eBay. I'm not allowed to show a loss, but I can show a net profit of 0.
If the sales price is greater than the purchase price, you need to use the actual cost of purchases and show a profit rather than backing into the cost.
| | | Sched C Line |
| 1099k eBay Sales | $10,000.00 | 1 |
| shipping | ($100.00) | 48 |
| fees | ($100.00) | 48 |
| other expense | ($50.00) | 48 |
| gross income | $9,750.00 | |
| | | |
| COGS | ($9,750.00) | 4 |
| Net Profit | $0.00 | |
| | | |
| Beginning Inventory | $0.00 | 35 |
| Purchases | $9,750.00 | 36 |
| Ending Inventory | $0.00 | 41 |
| COGS | $9,750.00 | 42 |
