I had to read this several times to understand it. I think I get it, but have a few questions. I was assuming I need to sell them as personal items (and not report any loss) even though they are being sold in a flea market. So, you are saying I can sell them and claim the loss on taxes by stating the ETV as my cost of items?
The income for these items that is reported on the 1099-NEC is for the reviews. So that would be a different business in my head. So, I would need to put the 1099-NEC from Amazon as income on a schedule-C related to reviewing the items. I assume I can deduct any business expenses related to reviewing the items? I don't foresee any though since it does not cost me anything to recieve items to review and I do not currently make videos for the reviews, so there are no expenses there.
Okay, so for the flea market. I would consider the ETV for any item I sell at the flea market as the cost of goods? And then report the sales. And anything under the ETV is a loss, and anything over the ETV is profit? Does this in anyway cause me to be paying income taxes on the item twice? That is what I am worried about.
Does the cost of goods cancel out the ETV? What if the item is received in one tax year, added to my flea market that same year, but does not sell until the following year? Does the cost of goods get put on the income tax year that the item was ordered on Vine and income was recognized? Or does the cost of goods get reported on the tax year that the item sold?
