First time dealing with taxes. Fee's between 1099K detail and expenses report
Want to make sure I am looking at this correctly while doing taxes up for the first time. It looks like the 1099K details document has the "main" eBay collected fees (final value fixed and variable), but this does not include my shipping costs and does not include any ad fees for that item. So I would need to get both of those from the expenses report. Am I seeing that correctly
4 comments
monica-sells
·3 years ago@bigdaddyhen1980
The amount on your 1099-K is the TOTAL amount of your sales....
(not just the item, but the shipping that was charged for the sale)
example: Item sold for 10.00 + 5.00 Shipping....the amount on your 1099-K would be 15.00
from that 15.00 total sale you subtract your primary costs of goods sold:
A) what you ACTUALLY paid for shipping
B ) Final Value Fees charged by ebay
C) Promoted Listing Fees charged by ebay (if applicable)
D) Listing Fees charged by ebay (if applicable)
E) Refunds or Adjustments/Discounts that you made to lower the cost to your buyer for that order
F) Cancelled Orders that were Paid and Refunded
G) Cost of Store (if applicable)
The above are the minimum deductions EVERYONE can take.
There are many more deductions to arrive at your NET PROFIT (taxable) Income.
absolutely what @stainlessenginecovers said
See a tax preparer or read IRS about Schedule 1 for more info.
stainlessenginecovers
·3 years ago@bigdaddyhen1980 No; you are wrong of what you are seeing. That amount on the 1099 is that Gross Amount collected BEFORE Fees, Shipping Costs and even BEFORE any refunds. The only thing NOT on a 1099 for eBay, is the Sales Tax they collect from buyers.
You need to write off:
Original Cost
Final Value Fee
Shipping Label Cost
Refunds
all at minimum.
You can also POSSIBLY write off (if you have receipts)
Shipping Material Costs
Interest on purchased items/materials
Home Office (portion used) or Office/Warehouse (both with utilities)
Mileage to/from getting items, getting shipping supplies, going to post office etc.
See a tax preparer or read IRS about Schedule 1 for more info.
bigdaddyhen1980
OP3 years agoSorry, I was not referring to the 1099K itself, but the detail report that ebay makes available that breaks it down as a .csv at the transaction level. On that report for each transaction I see the gross amount as well as a field called transaction fee. The transaction fee seems to only contain the final value fee (fixed and variable). It does not seem to contain any ad fee (promoted listing) or my shipping costs, which is what I am trying to verify. It seems like the expenses report show the transaction level shipping and ad fees that I would need to use for those specific values.
monica-sells
·3 years agoThere are 3 or 4 different "report structures" you can download....
I am not sure which one you might be using, but I can say that the best one I have found is this one.
https://www.ebay.com/sh/fin/reportslanding
It is not the most comprehensive, but it gives you any and all information you need.
You need to sort your rows because as far as I can tell, there is no single line (row) that shows all the information you are requesting on one line.
They are sorted by such names as Order, Charge, Other Fee, Shipping, Payout etc......
(i hope i made sense)