Where do I write off Obsolete Inventory which I have either trashed or donated ? Thank you.

[Carl]

You enter the 1099 in one place, and one place only. After you enter it, it may "appear" in multiple places. That's fine. I would suggest you enter it in the SCH C section if there is a section in that part of the program for it, so you're not jumping through hoops.

find a lot of entries that were not sales related, funds passed to me by friends for one reason or another but not marked as FRIEND.

If you don't report that 1099 *EXACTLY* as printed, you will have issues with the IRS. As far as the IRS is concerned, it's all business income with no exceptions. Just because someone is a friend, doesn't count. Just because someone "gave" you money, doesn't matter. If it's on that K-1, It's all business income. Period. This is why you don't mix personal and business finances under any circumstances and with no exceptions. It *will* bite you, as it appears you've been bitten.

[M-MTax]

@ABALLIETT got a 1099-K from Paypal, not a K-1 and this so obviously does NOT belong on SCH C....it's crazy to even discuss it. This is nothing more than a guy selling off a collection of personal items that happens to be collectibles. The sales belong on Form 8949 (SCH D) and @ABALLIETT should be able to deduct his bases from the selling prices. The tax rate on the sales of collectibles is 28% but at least the seller should not be subject to self employment tax as if this were a SCH C business. 

[Carl]

Thanks martinmarks1919. I figured there had to be some other way. In the past there's been discussion of collectibles sold on this forum. But this is the first discussion I've seen this year. I was unable to find any past discussions on this board, and it's possible they either scrolled off, got archived, or were not transferred from the old forums.

[Hal_Al]

I believe the gain on collectables is taxed as ordinary income, but with a maximum rate of 28%.  The tax is calculated on the Schedule D worksheet.  

[Carl]

So would the sale of collectibles be reported in the Investments section? I think so, under stocks, bonds, mutual funds, other.

[Hal_Al]

Yes, the sale of collectibles be reported in the Investments section.  A follow up screen, after entering the sale info,  allows the user to check collectibles.

[M-MTax]

.....with a maximum rate of 28%.  The tax is calculated on the Schedule D worksheet.  

I think that's right......maximum rate of 28%.

[ABALLIETT]

So, you've lost me again. When you say 'Collectibles" are you describing and item that is sold as a 'collectible' and purchased as an 'investment' with the plan to make a profit in the future? I'm not talking about item of this sort.  I'm talking about stock/retail copies of books and records that I purchased back in the d ay and am now offering to others on eBay  Something do sell for a profit. Few do, but in aggregate, selling a lot of things for less than I paid for them does put some money in my pocket.  Is this really a schedule "D" situation? 

[Hal_Al]

@ABALLIETT 

You tagged on to an existing thread that was (apparently) not applicable to your actual situation.  Now you're all confused.

You latest post seems to say you're just selling your personal stuff.  You should do two (maybe 3) different things.

1. The stuff you sell at a loss should not be reported at all. See  https://ttlc.intuit.com/community/taxes/discussion/i-sold-some-personal-items-on-ebay-and-received-a...

2.  For the stuff sold at a profit, you should report it as hobby income (report only the profit not what the item  sold for).

3. If some of the items can be classified as collectibles and your are in a high tax bracket, you can enter them as collectible capital gains.  If you are in a lower tax bracket, keep it simple, report the collectibles sold as hobby income too.

[M-MTax]

@Hal_Al is right @ABALLIETT.

I thought I read that @ABALLIETT was "broke" or something so that $30k on the 1099-K would be long term gain or loss BUT EVEN IF @ABALLIETT used a $0 basis @ABALLIETT it's hard to see where any tax would be due on the gain.....unless there's other income added in there.

[ABALLIETT]

Please explain this further as it doesn't seem a realistic response to me (not saying that's it's YOU who is wrong !) 

I do have about $10000 a year in social security/pension income. Incidentally, The money on the 1099k is WAY less for me after all fees and expenses of doing business are taken out   and from what I got to see came (thousands) in car repair, health care and, FINALLY, new eyeglasses. so, yes, I'm poor

How could filing capital gains reduce what I owe in taxes (or how could I not have taxes on $30,000?) 

Sorry I'm so dense.

Thanks 

-Allan

[Hal_Al]

You have $30,000 in sales, not profits.   The profit is what's taxable.  Have you actually calculated the profit? 

Is this your first year as an ebay seller? If not, how did you report it in the past? 

If you are selling personal items you may not deduct losses, regardless of which method you use to report the income.  For example, you sell a used book for $10, that you paid $30 for and a collectable vinyl record for $50 that you paid $5 for: you have $45 of taxable income (50-5) not $25 (50 -5 + 10 -30). 

[M-MTax]

@ABALLIETT If you only have $10k in SS income and you added $30k in long term capital gains you would not have any federal tax liability. LTCG are taxed favorable rates.

[ABALLIETT]

Would you mind explaining this in more detail? If what you say is true (and I sure hope it is) it sure would lift a heavy load from me! But I thought the best I could hope for was paying 28 percent of the amount over the PayPal charges, etc

You're just saying that my standard deduction should offset $40,000 income? (I have NOT trialed anything in turbot tax so far this year) 

[M-MTax]

Your standard deduction PLUS the fact that long term capital gains are taxed at a favorable rate.....and aren't taxed AT ALL below a certain level......will result in you paying no income tax to the feds. Forget about the 28% thing because that rate is for collectibles and you've just got a bunch of personal stuff that you "collected" over the years and NOT stuff like antiques or artwork or gold coins and stuff like that.