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posted Feb 1, 2025 9:41:35 AM

form 1099-k using turbo tax desktop for windows - how to offset this gross amt with shipping/ expenses ?

I don't know how to offset this form 1099-K from ebay.  my gross was only 5263.00 and my expenses shown on ebay site were $1405. clearly putting me under the 5K threshold!  Why are they reporting this gross amount and how do I offset this in my turbo tax deluxe software?  Where?

 

Also, I only sell items I have purchased for my own use and am not a business.  Do I have to list myself as a business in order to only show the net and not this gross amount?  Do I say I'm a hobby seller, to claim expenses and ebay fees?  I currently selected Personal item sales since that is the category that seems to be accurate for my situation.  This whole situation is ludicrous!  I appreciate your response. Thank you

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1 Replies
Expert Alumni
Feb 1, 2025 10:37:48 AM

It depends. Did you make a profit or were they sold for less than you bought them for?

 

If you sold these items at a loss, which is most common for selling personal items, the easiest solution is to choose personal items, and indicate that the items were sold at a loss or had no gain.  Then, the expenses are not needed.

 

Technically, you could ask for an amended 1099-K

 

If you did make a profit, the profit is taxable. 

  • First, separate the proceeds on losses from the gains. After you enter the 1099-K information, you will be asked if you "sold some items at a loss or had no gain" or if "all items were sold at a loss or had no gain." Unlike the prior situation, you will choose "I sold some items at a loss or had no gain." Then, enter how much of the $5,263 was proceeds were for items that did NOT have a gain. 
  • Now, navigate to Federal > Wages & Income > Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) > Add/Edit
  • Select eBay
  • Under proceeds, you will enter the cost of the items with a profit ($5,263 less what you reported did NOT have a profit earlier)
  • You will enter the total amount paid, which is your cost of the items, plus the portion of fees attributable to these items.