Yes, there are instructions on how to do it with tax software in this thread.
You first list the data from PayPal that includes the total as reported to IRS and on that 1099k. (e.g. Gross Profit of 450)
You then list the Cost of goods - (330) which if I recall correctly is listed as a negative number.
The system will then see and list that you have a taxable income of 120 (your actual net profit).
Be sure to keep all records and receipts of your purchases. If you were to get an audit , you can show the actual cost of goods at 330 and be okay. If you don’t have proof, they would say you owe tax on the full amount. So keep records throughout the year instead of trying to get it all together last minute.
