Returning Member

Selling on Ebay


I sell items on Ebay that I no longer want or need at probably 50% less than what I paid. I never make a profit. I just try to get something out of it instead of donating it. Why do I have to report this as income? $600 a year seems very low to consider it income

Employee Tax Expert

Self employed

Hi Nita69, thanks for the question.


Regardless if you receive a 1099-K from eBay, you are selling products/goods. If the activity is continuous and  on-going, you should report the gross sales amounts on Schedule C, Profit or Loss from Business. The cost basis should be similar to the sales price since it is the fair market value with an unrelated 3rd party in an open sales platform. Your Schedule C should break even/small loss/small profit.


If the activity is a hobby (no profit motive), then you need to report the income as is. Cost basis can only be deducted if you itemize deductions on Schedule A. With today's high standard deductions, hobby expenses/costs are usually not deducted on Schedule A.


Hope the above helps.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"