Where do I expense shipping costs and fees for selling things on eBay or other ecommerce sites?

Forum|Forum|1 year ago
March 20, 2025
1 reply
0 views

For Example if eBay says I made 100k a year, but $17k of that was eBay fees that they took, and another 4k was shipping fees. Where would the 17k and 4k be expensed?

Best answer by KrisD15

If this is the first year you're entering the 1099-K directly on the Schedule C screen, you can have a miscellaneous expense (or several) and name it something like "Shipping on 1099-K" Or "Selling fees on 1099-K".

If you decide to do this, do this the same way year after year, the IRS likes consistency.

KrisD15

If you are filing schedule C, those would be business expenses.

If the sales were personal items, the treatment would be a bit different, but if the 1099-K is really reporting 100,000, that sounds like a business.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

wilyryAuthor

It is a business, essentially just a SP as I'm just selling as a hobby after I lost my job. The hard part to decide on is which of TurboTax many Categories these would fall under? They have so many starting with:

Startup costs

Home office

Communications

Office expenses

Equipment rental

There are so many categories, I just need a simple way to say X $ of that 100k was Fees taken by eBay, and X $ was how much it cost to buy shipping labels through eBay to ship everything. It seems overly complicated for a simple ecommerce side gig. Thank you for your help!