I received a 1099K from PayPal for about $30,000 from selling a collection on eBay.

Forum|Forum|7 years ago
June 6, 2019
1 reply
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I was collecting for about 10 years and don't know the original purchase prices. Do I have to report this and if so how? How would I determine the cost of goods sold? How would I account for the eBay, shipping and PayPal fees (I have this data).

TurboTax Deluxe Online

MelaineC

Level 7

Taxpayers sell on eBay for a variety of reasons. How or if you are taxed will be based on the purpose of the sale. To determine which category you fit in, please see TurboTax article; Ebay Sellers Fact Sheet for more information. If you made a profit (determined by the cost of your purchases less your sale), the profit will be taxed. If no profit, then you have nothing to tax. If you no longer know the original prices you may have to consider this all a sale for profit. Cost of goods sold will not apply to you if you have no inventory.

In order to account for fees such as e-bay fees, shipping, and pay pal fees, you would enter these as expenses on Schedule C if a business or as Hobby income, if a hobby. After determining if this was a hobby or business for you, please use the applicable steps below to enter income and expenses in TurboTax. The instructions below, begin with the directions to enter hobby income.

You can enter income from a hobby by doing the following in TurboTax Premier: