I received a 1099-K from selling items on eBay. How do I deduct the price I paid for the items from the amount I made from these sales?

It depends on whether you are selling items on eBay as a business, hobby or simply selling a few personal items.

 

If you have an eBay business, read Tax Champ @Carl’s answer in First time filing 1099-K trying to figure out where to put cost of goods

Thanks for your response. I'm selling personal items.

Report the income from your 1099-K by selecting 'Personal items sold', once completed you can use the following steps to complete your tax return reporting.

• Search (upper right) > type 1099k > use the Jump to... link to begin the entry of the income

To report the cost of your items 

• Search (upper right) > type schedule d > use the Jump to... link select 'Review' on Personal items sale (Form 1099-K) > follow the prompts to complete the cost entry

Keep in mind that a loss on the sale of personal items is not allowed.  A gain on the sale of personal items is taxable and required to be included in your income.

Thanks so much!