Question

Ebay seller at an overall loss for the year but not sure how to show it on the Sch C. Purchases are higher than actual sales

Forum|Forum|2 years ago
April 12, 2024
1 reply
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Hi,

So I started reselling and bought a bunch of items like clothes, shoes, toys etc. to resell. I got a 1099K from ebay to show my income. Overall I am at a complete loss because of all the money I spent to buy items. I'm confused on how to show this on the Sch C. It says as a small business I'm not required to include inventory so do I put my purchases as an expense under supplies line 22?

For example, amount I paid for items in tax year 2023 is $23,000 but only made $9,000 on items sold in 2023.

Do I have to fill out the COGS section, if so how? If not, then do I Show income of $9,000 on line 1 and expense of $23,000 on line 22?

J

JamesG1

To report $9,000 Cost of Goods Sold in TurboTax Online, follow these steps:

Within the self-employment activity, at the screen Here's your info, select Import expense transactions. Select Inventory as an expense.
At the screen Do you have inventory for your work?, select Yes.
At the screen Did you use the cost method to value inventory, select Yes.
At the screen Let's get the value of inventory, enter the beginning and ending inventory.
To record the $9,000 cost of sales report $0 for both the beginning and ending inventory.
At the screen Let's get the cost of goods, enter $9,000 under Cost of Purchases.

Schedule C Part III Cost of Goods Sold will reflect $9,000. In TurboTax Online, view the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

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L

Lily251Author

@JamesG1 what about the $23k I spent buying items like toys and clothes to resell? I can't deduct that amount? When I do what you mention I have the $9k from the 1099-K showing on line 1 as income and then when I enter $9K as cost of purchases with zero inventory then it flows to line 3 on the schedule c and nets my gross income to zero. Can I maybe put $23k as cost of purchases instead since thats what I actually spent?