Where to eBay expenses, etc.?

[Lynn G1]

Hello all.

This is the first time I am reporting eBay sales  so I would like your help to make sure that I do this correctly. Last year I sold about 200 items on eBay.  I had to pay quite a bit for these items and I do have records/receipts to show how much I paid.  However, I am unsure where to enter these costs.  Should I do this under the Inventory tab?  If not where?

What about those items for which I no longer have receipts?  Should I use "fair market value" as my cost basis?

Lastly, where do I indicate the fees that eBay added to my "Gross Amount (Box 1a) (e.g., postage, taxes, etc.)?

Thanks in advance to all of you!!!

[LeticiaF1]

Yes, enter your cost in inventory. Regarding the items that you don't have receipts for, you could use, canceled checks reflecting proof of payment, account statements, credit card receipts, and statements, invoices.  

For the fees that eBay added to your gross amount, I would suggest you report it under Other Miscellaneous Expenses.  To get back to your Schedule C:

1. Open or continue your return
2. Locate the Schedule C section
3. Go to Schedule C
4. Under the business you need to review, go to Review
5. Change your Work description if needed
6. Once make the change, continue the interview until you get to the expense categories (see the image below)
7. Select Inventory the program will guide you as you enter the information

See the images below for your reference: