Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Bog2
New Member

1099-K. No choice but to call hobby a business. Upgrade to turbo business?

I sell hobby items on ebay. I use funds (plus other funds) to buy other hobby items.

1099-k has made it to where I have no choice but to file as a business it appears. 

Hobby expenses at the same level as income creates massive tax liability despite nothing is for profit.

So I acquiesce and call it business income. The schedule C (I read questions and answers) allow a beginning inventory to be added to the cost of merchandise purchased and then you can subtract ending inventory. This will make the cost of goods sold to be about the amount that I "earned". This seems to show I made no profit. I am hoping that I will then not owe tax.

However, the only way to find out is to upgrade to Turbo self employed.

The question is basically, does my premise view pan out?

I would hate to upgrade to Turbo self employed and then find out that it doesn't reduce the tax any.

1 Best answer

Accepted Solutions
Carl
Level 15

1099-K. No choice but to call hobby a business. Upgrade to turbo business?

If you will be claiming any business expenses, you'll have to use the Self-Employed version. Otherwise, if you have no expenses and will be paying taxes on every penny of business income, you can use TurboTax Premier online.

View solution in original post

1 Reply
Carl
Level 15

1099-K. No choice but to call hobby a business. Upgrade to turbo business?

If you will be claiming any business expenses, you'll have to use the Self-Employed version. Otherwise, if you have no expenses and will be paying taxes on every penny of business income, you can use TurboTax Premier online.

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v