I received a 1099-K for about $2,000 in Poshmark sales. I believe that amount is for gross sales, since my seller's report on Poshmark shows a net payout that's about $500 lower. I assume shipping charges and Poshmark's 20% commission account for the difference.
I'm filing my taxes using Turbotax Premium, and I'm reporting this 1099-K income on the Schedule C. I don't know how to report the cost to me of the clothes that I'm reselling. Some are thrift shop finds, bought to resell at a small profit, and others are items from my own closet, which sold on Poshmark for a fraction of their original cost. Would the cost of the clothes fall under "Inventory?" Turbotax asks me if the inventory costs were the same at the beginning and end of the tax year. Can anyone shed light on this?
