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1099K Calcuations
Will Ebay calculate a 1099K by Gross Sales (Sale Amount + Shipping). Sales tax is not calculated into the 1099K amount reported, correct?
So Ebay reports Gross Sale of $4500.00 (selling price + shipping) and I deduct cost of product, shipping costs/supplies and fees for Ebay.
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jacbarcollectibles
Mentor2 years agoThe 1099 amount is for the total amount of sales you made (even if you refunded some of the money) plus the shipping charges collected if any. No sales tax is part of this amount. You then deduct on your Schedule C any expenses of selling and acquiring the items. When claiming expense deductions be careful of claiming a home office. The IRS has very strict rules for a home office and this will usually cause an audit of your tax return.