Hi,
So I started reselling and bought a bunch of items like clothes, shoes, toys etc. to resell. I got a 1099K from ebay to show my income. Overall I am at a complete loss because of all the money I spent to buy items. I'm confused on how to show this on the Sch C. It says as a small business I'm not required to include inventory so do I put my purchases as an expense under supplies line 22?
For example, amount I paid for items in tax year 2023 is $23,000 but only made $9,000 on items sold in 2023.
Do I have to fill out the COGS section, if so how? If not, then do I Show income of $9,000 on line 1 and expense of $23,000 on line 22?
