Enter in the 1099-K information where you would enter in self-employment income. Then choose the type of income received, which is 1099-K. Once you enter the sales, turbo tax will ask if you want to record expenses. In the expense section, choose inventory as an expense type. Enter zero for the value of beginning and ending inventory. The next screen will ask the cost of the goods. Put the value of the goods sold in the cost of purchases box and continue. If it is worth more than what you got, then you won't be taxed on the sale.
