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If you are a partner in an LLC, and receive a 1099-K from ebay for personal items sold, do you report the income on your 1040?

Forum|Forum|3 years ago
January 31, 2023
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The 1099-K was issued because the sale of personal items just passed the $20,000 threshold. We are a family owned LLC...but again, these are all personal items that were sold, and have nothing to do with our LLC. Thank you.

Best answer by SantinoD

Any 1099-K income you received that wasn't paid to the LLC will be reported on your personal tax return as self-employment income. This gets reported on Schedule C which is a business tax form that is filed with your individual tax return.

You can also deduct any qualified expenses that were incurred with selling those items to help reduce that amount of taxable income.

To learn how to enter your 1099-K, go here: How do I enter a 1099-K received as self-employment income in TurboTax Online?

SantinoDAnswer

Any 1099-K income you received that wasn't paid to the LLC will be reported on your personal tax return as self-employment income. This gets reported on Schedule C which is a business tax form that is filed with your individual tax return.

You can also deduct any qualified expenses that were incurred with selling those items to help reduce that amount of taxable income.

To learn how to enter your 1099-K, go here: How do I enter a 1099-K received as self-employment income in TurboTax Online?