Question

How to report small amount of eBay profit

Forum|Forum|7 years ago
June 5, 2019
1 reply
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Hi guys.

I have less than $1k in profit that I need to report for last year.

Just a few random things I sold that I made a profit on (aside from general items like clothing that I just sold out of my closet and didn't make money on)

Anyway, how do I show this when doing my taxes?

I don't necessarily treat this as a business. Just selling things I have owned.

I have a service based business that is what I do for a living and have a schedule C for that.

Do I need to create a new schedule C? Do I have to use accrual accounting? I didn't really keep an inventory or anything.

If I created a new schedule C and chose Cash account method, would I just ignore the expenses section and just put in my net profit?

Or could I just put that profit in the "other" income section of the schedule C and ignore the rest?

If not, is there another place I can just input the net profit I made?

I might possibly start selling more (as a business) and in that case, I plan on keeping books, etc.

Thank you

M

MaryK1

Employee

If you are not selling the ebay items as a business, you can enter the income under Investment Income- Stocks, Bonds, Mutual Funds Other. You will indicate that you did not receive a 1099-B and indicate they are PERSONAL ITEMS. Please note, that your income on the sale is the difference between what you received and your cost basis- so for example, you sell a bike for $100 but you paid $250 two years ago, you do not have to enter this entry because you did not have any income and you are not able to claim the loss ($150) on the sale of personal items. I would recommend keeping a list if you do not have to include the items.

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