1099-K eBay, HELP

[porphyrioskafsokalivitos]

I’ll make this as simple as I can.

I received my eBay 1099-K.

• I use my account for personal AND business. - eBay says I made $12k. However, NONE of the items I sold for personal and for business were at a profit. NONE.

Since that’s the case, I owe no taxes because I made no profit as everything was sold at a loss. However, (according to the IRS) I must include every 1099-K. But, if my 1099-K says I made $12k and I include it, then how does the IRS know I don’t pay on any of it? Won’t they catch it as I applied income and fine me?

I use TurboTax as well.

Any help is extremely appreciated.

 

[sisterbecky216]

@porphyrioskafsokalivitos They’re not saying you had $12k in profit; they’re saying they gave you $12k. It’s the profit that’s taxable. You have to put in business expenses.

 

[marilynliddell]

@sisterbecky216 Yes, OP probably needs to upgrade their TurboTax subscription to include the option to enter expenses, don’t believe the free version has this option, or op skipped a step/misread a prompt.. TurboTax is pretty comprehensive

 

[porphyrioskafsokalivitos]

@sisterbecky216 Your wording makes sense, thank you.

Additionally, I already filled out Form 4797 for ALL of the business gear I sold for 2023, and ALL of it was at a loss. Most of that gear is from those eBay sales.

 

[enfuego]

@porphyrioskafsokalivitos I’m in similar boat for my eBay acc as well, mostly use it to sell items for loss

 

[porphyrioskafsokalivitos]

@enfuego Exactly. I sell A LOT, but it’s all be depreciated business stuff in prior years and the money I’m getting I use to fund new gear. It’s ALWAYS at a loss.