My wife & I purchase season tickets for sporting events. We go to a few games. We sell most of the tickets. We make a modest profit. This year for the first time we've received a 1099-K from PayPal.
Assume the cost of tickets is $10,000 and we sell them for $12,000. We enter $12,000 when filling in the information for the 1099-K.
But I can't figure out where to enter the $10,000 cost.
I think it should end up on line 4 (Cost of Goods Sold) on a Schedule C. And Line 4 comes from the sum of Part III (lines 33-41) of Schedule C. I think this should show up on Line 36 "Purchases less cost of items withdrawn for personal use." But I can't figure out to map from that line to TT's questions. TT gives a range of options for Business Expense but none are clear match for line 36.
Where should I enter the amount we paid for the tickets such that the costs shows up on Line 36?
Thanks
Mike
