I received a 1099-K from PayPal this past year for buying/reselling things. What category do I expense the retail price of the items I bought?

[makayano]

For example, I purchased item A at 100 and sold it for 200. The 1099-K will show my profit as 200. How do I account for the 100 used to purchase the item?

[ColeenD3 · Accepted solution]

You can include your purchases in Inventory. Please see this LINK  from ShaunaD for the steps.