PatriciaV
Expert Alumni

Business & farm

Yes, the income you receive when you sell the product is income. What you paid for the product is "cost" and reduces your "net income." The commission you receive reduces your cost for the product, which also increases your net income.
If you buy a product for $45 and receive a $15 commission, the product actually costs you $30. If you then sell it for $50, your net income is $20 ($50 minus $30).
In TurboTax, your product cost is an expense. Commissions are income. And sales are income. For this example, you would report sales of $50, commissions of $15, and expense of <$45>. The sum of these three entries is $20 - your taxable net income.
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