Any documentation that you can assemble including pictures downloaded pages of similar items on Ebay and Amazon would allow you to defend your deduction.
Report self-employment income and deduct personal expenses as a self-employment expense.
As an example, suppose your 1099-K reported sales of $1,000. The items sold were these:
- $900 for items purchased for resale (for which you have cost figures), and
- $100 for personal items for which you have no cost figures but expect there to be no gain on sale (for personal items, no loss on the sale is allowed).
Since you are not reporting an inventory in your Schedule C, you may report two cost entries:
- Items purchased for resale reported under Here's your info / Inventory at the screen Let's get the costs of your goods, You have the individual costs for these items.
- The cost of personal transactions are reported as Personal Sales - no profits under Here's your info / Other miscellaneous expenses. Those costs are reported as no more than $100 since no loss on sale is allowed.
[Edited 03/08/2022 11:33 AM PST]
@jjzonka
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