Multiple 1099-K Form For Online Sellers

[cboros39]

How do you handle multiple 1099-K forms from different platforms while using the same inventory? How should this be entered when filing taxes? I sell on eBay and Mercari using the same inventory, so when I sell something off of one platform, I make sure to remove the item off of the other platform. You are required to input a beginning inventory and ending inventory for each 1099-K. I'm just so confused as to how this would be entered for both 1099-K forms, since my sales from the two platforms come from using the same 

inventory. 

[KrisD15]

To clarify, are you filing as a business? 

If yes, then both 1099-K's would be entered as income for that business and that business would handle the inventory. 

[cboros39]

I'm filing as self-employed, sole proprietor. I don't understand how it would be possible to enter the same beginning and ending inventories numbers on the tax forms for both 1099-K's when I'm using the same inventory to sell on both platforms . 

[cboros39]

For example, let's say that on eBay, I had a beginning inventory of 30,000 and ending inventory of 22,000. This inventory gets entered on the cost of goods sold area. I receive a 1099-K from eBay with my gross earnings. I also receive a 1099-K from Mercari with the gross earnings. My question is how to go about entering the beginning and ending inventory on the cost of goods sold area for the Mercari 1099-K form when my Mercari platform uses the same inventory as my eBay. When I sell an item off of one platform, I'll then remove it off of the other. platform.

[RobertB4444]

For your purposes the easiest way to handle this is to combine the two 1099-Ks into one.  Add them together.  That way the beginning and ending inventory is accurate based on total sales and the amount of income that the IRS is looking for will be accurate because they are looking at total income not individual 1099-Ks.  

@cboros39 

[cboros39]

How would I go about combining them as far as on the tax program? Wouldn't I still have to enter the 1099-K information from both eBay and Mercari to show that I did sell on both platforms? I'm confused because for each 1099-K entered, it prompts you to enter the beginning and ending inventory for both. I like what you are saying about combining them. It makes total sense,but I just don't understand how it would be entered on the tax program. Are you saying that when I'm entering my 1099-K information for eBay, I should add the gross wages for Mercari onto the eBay gross wages? Won't that throw a red flag when I go to enter the 1099-K information for Mercari? There are those schedules for each 1099-K. I thought that the IRS requires to see all of the schedules for each 1099-K. How do you bypass all of the required 1099-K schedules for Mercari to combine total income with eBay, especially since the IRS receives each 1099-K that shows the gross amounts. So if I added Mercari gross wages to the eBay gross wages, then the total gross amount in box one wouldn't then match what is shown in box one on my eBay 1099-K. It would obviously now be higher because I've added Mercari wages onto it. Seems like the only solution to easily combine the amounts is to not enter that I have another 1099-K from Mercari and use the 1099-K from eBay and then just add the Mercari wages onto the eBay, but I'm sure that's probably not the correct way to do it either, because aren't you required to enter the information from each 1099-K that you receive? Or or you saying that the IRS is only looking to verify the total income from both and that it would be okay not to enter Mercari 1099-K on the tax program as long as I take the gross wages and add them into the eBay 1099-K information? Sorry for the very lengthy reply. I'm just really trying to understand what to do. I appreciate your helpful answer. I just want to make sure that I enter everything correctly on the tax program. 

[AmyC]

 You can enter each form, in the right place. Let's make sure this is all one business on a single business return the way it should be. Your forms are in the wrong place since you are being asked about inventory with each form. Do not enter anything on the main income screen. If you did, delete those forms.

Go to Business, select business income and expenses

As you enter the business information, it will ask about 1099's.

Income:

All of your 1099-K income should be entered inside the business. There are no inventory questions when inside the business while entering the forms.

After entering all income, select that your business carries Inventory. Then go through entering the inventory for your business.

After inventory, you can enter other business expenses.