The bottom line is, when it comes to your taxes, (Both federal and state, if your state taxes your income) you are self-employed. We can scream, holler, threaten, and all that other stuff all we want. All that money reported to you on the 1099-K is self-employment income, and you were self-employed in 2017 with a sole proprietorship business. Period.
So now you have no choice but to upgrade to the Self-Employed version. Your 1099-K will be reported on SCH C as a part of your personal tax return. Anything and everything you purchased for people is inventory that you now have to claim as such, unless you want to pay taxes on all that income. Then add to the mix rental income which from a business perspective of someone who files a SCH C further complicates matters.
At this point, it is my recommendation (HIGH recommendation) that you seek the services of a CPA, Tax Attorney or Enrolled Agent in your local jurisdiction to deal with your entire 2017 tax return this year. YOu will need to print out every single individual transaction and produce receipts for absolutely every transaction you possibly can, and provide to the person you seek assistance from on this.
Is this going to cost you? You bet! But if this is not done right, the fines, penalties, back taxes and interest will make the cost of professional help seem like a pittance in comparison. Seek professional "personal one-on-one, eyeball-to-eyeball" help on this, yesterday, if not sooner.
