Poshmark 1099-k questions

[it51]

Hi, this is the first time I received a 1099-k and all of it is from the sale of my old clothes, shoes, etc.  I got to the section in TT where I enter in the revenue, original cost, and Sales expenses not report. I understand I have to enter each transaction separately but I need help making sure my numbers are correct and have questions.

Question 1: the 1099-k says $3000 but $350 was cancelled sales. I checked the box and put $350 overstated, is that correct?

Question 2: In the "Investment Income" sales section of TT, I have proceeds totaling $2,120 ($2,650 the correct amount minus 20% that Poshmark takes) = is the "proceeds from sales" of $2,120 correct from my example.

Question 3: "Adjustment" - is this the difference between the original amount paid (Cost Basis minus the Proceeds from sales)

Questions 4: the last screen asks: "I paid sales expenses that aren't included in the sale proceeds reported on the form" = would this be where I put the 20% Poshmark takes? (I don't have any other sales expenses to report because I recycle boxes and bubble wrap, so do I put zero here?)

Question 5: If the answer is no to Question 4, is there a place where you put the 20% Poshmark takes? I ask this because the 1099k states $3000 which is already overstated by cancelled sales and I didn't make $3000, my sales were $2120.

Thank you 

[RobertB4444 · Accepted solution]

So to start with you'll need to enter the entire $3000 for your 1099-K into the section for that in the self-employed section.  Skip the section marked investment income - you don't have any of that,  Then, in the section that says "I paid sales expenses that aren't included in the sales proceeds on the forms" you'll enter two expenses - refunds of $350 and sales fees of $530.  That gets you to that $2120 total you are working towards.

You can also take expenses for the items that you are selling if you have any receipts for them.  

@it51 

[samanthamyr]

So, if I bought the inventory to sell. Can I write that off?

[samanthamyr]

Yes, but I am asking more for if I bought a bag at 2400 and it sold for 1250. Can I use the 2400 as an expense?

[AmyC]

No, you can't claim the entire $2400 as that would give you negative income. Income from reselling items sold at a loss is not taxable. You may not take a loss on the items. Therefore, you could enter your inventory or basis as the income you want to eliminate. This would take you to zero income and no tax since you sold at a loss. You will want to keep receipts from the purchase, in case of an audit.