You'll need to sign in or create an account to connect with an expert.
How about losses. Using the tickets again, if the cost is $200 per ticket and I sell these for $100 each through a ticket exchange to get rid of the inventory, it's still going to report the $100 sale to my 1099K. What do I need to do to ensure I'm not getting taxed on this?
Earlier there was a comment about paperwork or not if I sell for profit. What's a best practice for my wife and myself if we are selling things like clothing, tickets, collectibles on the side for a profit. At least have an business DBA even if we don't need to register? (ie. Josh's Collectibles"
Any money you make will be reported on the 1099 as they don't know your cost in the item sold. If you report it as a business you report total income and then report total cost (this will take into account the loss). If you do it as a hobby then you pay tax on the $100
You can name the business if you want but there is no need to you can just use your name as the business name. As far as registering it as a business you would need to check the State regulations and requirements
Right so it's looking at overall sales and income. So if for the year I sold $10,000 in tickets and sports cards and after calculating my cost basis I was $11,000 in costs, then it's an overall loss. I think some of people think transactional on this thread because maybe they don't do more than 25 transactions in a given year and some of them would be selling at a loss. So if I am truly after costs losing money then I would not pay any taxes on the $10,000 reported on a 1099K correct?
Correct if you are showing a loss when the schedule C is complete then that loss will carry to the 1040 and reduce other income on the return
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
wal11682
New Member
Jefflatta
Level 1
joshalee
Level 1
Thealy59
Level 1
joshalee
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.