I'd probably be considered a casual (not business) seller on eBay and I've started preparing for my 2022 taxes (especially now with the 1099k) because I want to make sure I have all of the documentation needed for Schedule D. When it comes to calculating the cost basis for items I sell, I want to make sure I'm getting everything correct because I don't want to trip an audit.
If I purchased an item for $100, paid $6 in tax and $10 for shipping - is my cost basis $100 (because that's what I paid for the item before tax and shipping) or $116 (the total amount of the purchase)? I wanted to ask because I figure it's better to be safe and understand everything up-front rather than having to explain something during an audit.
Also, when reporting the 1099-K from eBay on Schedule D, can I include shipping paid and eBay fees related to the items I sold? Or can I only do that if I filed a Schedule C (which I don't think I can do because I'm not a business).
For example, I sell an item on eBay for $100 and charge $10 in shipping (for a total of $110 - which will be reported on the 1099k). I paid a total of $100 for the item - so my theoretical profit is $10. However, on-top of the cost of the item I paid $9 in shipping and eBay fees of $13 (total of $22). So now my theoretical profit of $10 is actually a theoretical loss of $12.
Would I then on Schedule D report 1099k income of $110 against 1099k COGS of $122? I just want to make sure I have everything correct.
