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banespell
New Member

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

 
10 Replies
pk
Level 12
Level 12

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

Are you trying to file your states sales tax report ?    TurboTax does not do that

Are you trying to file your own income return including your income from sole-proprietor business ( schedule-C ) --- you will have to upgrade -- I do not believe the free version supports  that feature.

banespell
New Member

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

No my question is what would show up on the finale amount you have made for the year would it be the 100$ profit for 500 for the whole item sale.
pk
Level 12
Level 12

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

 On your books  you should have the following:
Gross  Income --- $500
Cost of Goods Sold ---- $400
Net Profit before Taxes & expenses --$100.
Note though, this is not your real profit --- you have to allocate all the other expenses ( both fixed such as rental of the building, equipment, labor etc. etc.   AND variable  such as postage, delivery  etc. etc. ).  Only after that you get your  real business profit before  taxes.   That is what you pay taxes on  -- Federal, Sate  and Self-Employment ( 15.3% )

Does that help ?.
banespell
New Member

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

For for example i buy and sell10 items a month for the 12 months so would the end show I made 60000 or 12000 and this would be over paypal
SweetieJean
Level 15

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

You really need to see someone to set up your books and records correctly, especially if you are selling over the internet.
pk
Level 12
Level 12

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

The Paypal 1099-K would show the total gross of $60,000  that is reported to the IRS.  On your schedule-C you have to show gross income of $60,000. Then under Cost of Goods sold  you show what you paid for the goods sold -- $48,000.
Thus you net at that point is $12,000.  You still have to show all the other expenses  including PayPal fees.
pk
Level 12
Level 12

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

I think you should heed @SweetieJean  advice
banespell
New Member

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

Ok thx
VolvoGirl
Level 15

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

You enter your total gross income for the year.  Then enter all your expenses.  Turbo Tax calculates the Net Profit or Loss.  The gross and expenses are on schedule C.  The Net Profit/Loss goes to the 1040.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 27.   The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14.  The SE tax is in addition to your regular income tax on the net profit.
SweetieJean
Level 15

On your tax for selling a good is it only profit that shows or the whole cost for example I buy a item for 400 sell for 500 at the end of the year the 500 is what shows?

You may also need to file state income taxes in one or more states, collect and remit sales taxes, etc.
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