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1960champ
New Member

Ebay sent me a 1099-K that only shows the total sale price How do I enter the information for all the charges and my actual profit from the sales?

I sold personal property that I no longer need or want.
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1 Reply
RobertB4444
Expert Alumni

Ebay sent me a 1099-K that only shows the total sale price How do I enter the information for all the charges and my actual profit from the sales?

There are a couple of different ways to handle this income.  The easiest - but least fair - is just to put it on there and pay taxes on the whole amount.  None of us want to do that.

 

Next is to call it self-employment income.  That way it gets treated as a side gig.  The downside to that is if you made a profit on the sale of your old stuff then you pay self-employment tax on that profit.  But you do get to deduct the cost of the items and the shipping and everything else.  And if you're doing this every year then this is kind of a side gig to make a little extra money.

 

The way I recommend reporting this 1099-K is by entering it as 'Other Income' at the bottom of the income section on your federal return.  Type in the full amount that you received as a line item and then type a second line that you label as 'adjustment to 1099-K - sale of personal items' or something like that and create a negative for the full amount.  Sale of your personal items for less than you originally paid for them isn't a taxable event but you don't want to skip reporting that 1099-K income because the IRS will ask you about it otherwise.  This way you zero out the income but still let the IRS know what is going on.

 

@1960champ 

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