If someone is doing a small volume of transactions on ebay or other platform maybe like paypal and they now need to generate you a 1099-K for gross payments, do you need to file based on the whole amount reported or can you deduct out the original cost of the item if you are doing it as a hobby without many sales. For instance, if you are selling sports cards maybe 30 or so a year with possibly 2-4K of gross payments, but approximately say 40-50% of that is the original cost of the items, it would make sense to remove the 40-50% as you already were taxed on that and it is part of the original cost of the items you are selling. Also for context this is to use that money to buy other potential sports cards and overall the person doing this is negative and in the hole anyway since just doing it as a hobby etc.
I have read even as a hobby you can deduct out the cost of the item and somehow report that with your 1099-K but I am unsure on how that will work in the turbotax program or also if this is the correct way to do this for removing the original cost. I understand all other expenses could not be claimed if it is not a business.
