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Please explain. What exactly are you doing that you are paid and receive a 1099-K.
I sold on eBay and mercari and made enough to file a 1099 k this year. What kind of information will I need to file besides the 1099k from the eBay/mercari? I did this as a hobby not a business. Do I need profit/ loss numbers, inventory lists, taxes taken out, shipping ? I m just confused and would like to be prepared before I start my taxes. Also will the deluxe version be adequate for filing? Thank you for your help.
@ddwawa wrote:
I sold on eBay and mercari and made enough to file a 1099 k this year. What kind of information will I need to file besides the 1099k from the eBay/mercari? I did this as a hobby not a business. Do I need profit/ loss numbers, inventory lists, taxes taken out, shipping ? I m just confused and would like to be prepared before I start my taxes. Also will the deluxe version be adequate for filing? Thank you for your help.
See this to start.
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/form-1099-k/L3DiDpwcR_US_en_US
You always need your own accurate records, and the IRS is allowed to assume all income is taxable unless you can prove otherwise. If you are selling only used items for less than the purchase price, you need a list that describes the item, the date you acquired it, how it was acquired (purchased, gift, etc.) and the cost or cost basis, the date sold, and price sold for. Selling items for less than their price is not taxable income and you can exclude that from your taxable income. If you sell some items for more than you paid, you must separate those items out because those gains ARE taxable and you can't use losses on personal items sold for less than their cost to offset the gains. If you are reporting the sales as hobby income, you can't subtract listing fees, shipping, sales tax, or other expenses. If you routinely make a profit, it's probably not a hobby and needs to be reported as self-employment. You still can't offset your income by personal items sold at a loss, but you can subtract expenses from the gains from items sold for a profit. Certain other rules apply as well.
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