First of all, I got an eBay 1099-K for $21k total, the first time I passed the $20k mark. From what I read online and on TurboTax, I would say this is all hobby and not a business. The $21k from eBay is the transaction total and they don't subtract eBay fees, shipping costs etc, so the actual amount I got was less than that. Also, there is some cost of goods for the items I sold. I read that if it's a hobby, you cannot deduct your expenses but I'm not sure if that includes the cost of goods, eBay fees, or something else?
The second question is, assuming I can deduct those fees/costs from the $21k total, where do I enter that? Under the Misc Income -> Hobby Income? There it asks Total Income and Total Expenses, do I put $21k in total income or do I put the actual income minus fees/costs in that? Can I put the fees/costs in Total Expense?
Or do I enter it in Misc Income -> Other reportable income and just manually enter $21k from 1099-K and then COGS/fees as another line with a negative value? What would be the difference or are the two methods the same?
Using TurboTax Home & Business. Thanks!
