Is my amount earned the $2021 or the amount difference between my wholesale purchase and my sales?
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Report the gross amounts of sales as income, and your cost of goods sold as an expense. TurboTax does the calculations for you.
Your gross receipts would be the amount you received in sales, $2021.
Your gross profit would be the difference between what you sold and what you paid for the merchandise. So if you sold $2021 in product and it cost you $1595, your gross profit is $426. Below are screenshots demonstrating how to enter this.
If you had other expenses besides the cost of products, you would deduct them on your return, and report either a net profit or a net loss. You will be able to deduct a net loss if you had a profit motive for your Mary Kay activity, and it wasn't a hobby.
Report the gross amounts of sales as income, and your cost of goods sold as an expense. TurboTax does the calculations for you.
Your gross receipts would be the amount you received in sales, $2021.
Your gross profit would be the difference between what you sold and what you paid for the merchandise. So if you sold $2021 in product and it cost you $1595, your gross profit is $426. Below are screenshots demonstrating how to enter this.
If you had other expenses besides the cost of products, you would deduct them on your return, and report either a net profit or a net loss. You will be able to deduct a net loss if you had a profit motive for your Mary Kay activity, and it wasn't a hobby.
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