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Received a 1099-K for eBay sales around $3,500. Sold hobby items that I don't have receipts for. Do I file all of this as income? Or how would I claim expenses?

Forum|Forum|7 years ago
June 5, 2019
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The items in question are miniature games that I bought both from retailers and secondhand over the course of a few years. Some sales were complete items on eBay, some where smaller components from larger sets sold individually. Overall, between eBay/PayPal fees, shipping and original purchase price, it was likely at a very slim profit or a loss. But I do not have receipts for anything beyond eBay shipping and sales fees. Do I have to claim this as income?

TurboTax Self Employed Online

Best answer by viktoriyab11

Yes, you have to report all your income shown on 1099-K. This reporting is required by law.
However, every business has operating expenses, and a sole proprietorship is no different. As long as your expenses are "ordinary and necessary," in the parlance of the Internal Revenue Service, you can claim them on your tax return.

Of course, you have to retain any invoices, credit card statements, etc., to prove that the business expenses you have claimed are legitimate. But you don't have to present them just to prepare and file your tax return. You are required to have them if you are ever questioned or audited by the IRS.

What self-employed expenses can I deduct?

V

viktoriyab11Answer

Employee

Yes, you have to report all your income shown on 1099-K. This reporting is required by law.
However, every business has operating expenses, and a sole proprietorship is no different. As long as your expenses are "ordinary and necessary," in the parlance of the Internal Revenue Service, you can claim them on your tax return.

Of course, you have to retain any invoices, credit card statements, etc., to prove that the business expenses you have claimed are legitimate. But you don't have to present them just to prepare and file your tax return. You are required to have them if you are ever questioned or audited by the IRS.

What self-employed expenses can I deduct?

R

reegskAuthor

Thanks for the reply! Looking at the IRS requirements for "Hobby vs. Business", I think this would fall under the hobby category. Can I still claim it as hobby income if I received a 1099-K, or does it have to go in as a business? The items being sold were part of a collection acquired over a number of years.