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Garagesale ebay motors11/12/2022 ![]() You want to keep a list of the items you sell that includes a description, how you acquired the item and when, your cost, the selling date, selling price, and selling expenses. What you should always be doing, regardless of tax paperwork, is keeping accurate records. But remember, you only have income if you sell items for more than your basis. If you are a "Casual seller" then you probably aren't involved in "ongoing trade or business" so any net income is hobby income, and you can't deduct expenses. Being in an ongoing trade or business means you actively and regularly participate, you operate in a businesslike manner, you seek new business opportunities, and you have a profit motive. If you are in an ongoing trade or business, you report your business income and expenses on schedule C. (Cost basis is usually what you paid for an item, but can be different for items that were gifted or inherited or previously used by a business. Enter a Description for your offsetting amount, such as Form 1099-K costs or Form 1099-K cashback rewards and Continueįirst, regardless of any forms, you only have taxable income if you sell items for more than you paid for them, or for more than your cost basis.Scroll to Other miscellaneous expenses select the toggle, scroll to the bottom of the page and click Continue.Scroll down to EXPENSES and click in the lower left hand corner, Add expenses for this work.Report any cashback or rebates under LESS COMMON INCOME using Rebates and refunds, includes any income returned to customers.Report Form 1099-K as received in the COMMON INCOME section under Other self-employed income, includes 1099-K, cash, and checks.From the Wages and Income section, go to Self-employed income and expenses and select Start/Revisit to begin with reporting Form 1099-K. Self-employed persons must use the rebates option under income or report any offsets as miscellaneous expense.įor reporting Form 1099-K from self-employment with offsetting amounts that is associated with a trade or business you own and operate, TurboTax offers two self-employed options. In the self-employed section, negative income cannot be reported. Otherwise, Form 1099-K must be included in the self-employed section of the return. In other words, if the goods cost you $100 and Form 1099-K was for $10 in sales, the maximum cost allowable would be $10.For the cost description, include Form 1099-K and Cost of Personal Property.Next, enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income.For a description, include Form 1099-K and Personal Property Sales. #Garagesale ebay motors fullIt is essential that the full amount be entered. Enter the applicable description and amount and Continue.Choose the last option, Other reportable income and Start and Yes.Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start.Add more income by scrolling down to the last option, Less Common Income, and Show more.From the left menu, go to Federal and select the first tab, Wages & Income.Option 2 in TurboTax Deluxe or higher: reporting it via Other Miscellaneous Income is acceptable to the IRS.Select Add another sale to add the next Form received.Continue through the rest of the prompts.Select None of these apply at Let us know if any of these situations apply to this sale and Continue.The description for the cost should include Cost of Personal Property Next, enter your Sale Proceeds and an equal amount for the Total Amount Paid and click Continue.If you are uncertain what date you purchased the goods, select Something other than a date so that TurboTax will enter Various Answer How did you receive this investment with an option from the dropdown menu.At Now we'll walk you through entering your sale details, under the first dropdown menu, What type of investment did you sell? Select Personal Items.At Tell us more about this sale, enter in the name, such as Form 1099-K Personal Property Sales and the Payer's EIN and click Continue.Select Other at the next screen, OK, what type of investments did you sell? and click Continue.Go to the search box and enter Investment Sales.Option 1 in TurboTax Premier or higher: reporting Form 1099-K as investment income.This will mean you appropriately pay -0- tax on the non self-employed income.įor reporting Form 1009-K for personal items sold not associated with a trade or business, you have two options: If you do not need the self-employment section, you have two options to report Form 10999-K in TurboTax.īoth following options will report Form 1099-K and also zero it out on your return. Buying Advice.If your Form 1099-K is for personal items sold, similar to having a garage sale, and you were not in a trade or business, the IRS allows you to also deduct the related expenses for the sale up to the amount of the sale. ![]()
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