How Do I Split the Single 1099-K Between Business & Personal?
I sell under a single account with my own SS. This last year I sold off a bunch of items I inherited in addition to my regular "business" sales.
My single 1099-K covers everything. I file my taxes under my SS using T-Tax Home & Business. I have it all tracked but if I put the personal stuff into the business side it completely screws up my inventory and sales numbers.
I have searched high and low and cannot find any answers about how to input the numbers into the 2 very separate sections of the tax return.
11 comments
rfmtm
·3 years agoCheck the Turbo-Tax forum or ask them about it. They are usually very good about helping you use their software and where and how to report things like this on their app.
monica-sells
·3 years agoIn a sense, a lot of us are doing something similar to your situation....
I have separate ebay accounts for my B&M business/Personal (Sole Prop) and Personal items....
They all go on the Tax Return "somewhere"...in my case (since I get multiple 1099's from different platforms) That total usuallygoes on the Schedule C "Top Line"
Everything under that is allocated to the proper lines on the tax forms from the Sch C or imported from the approriate outlying forms.....
like @nobody*s_perfect pointed out..."slogging" is a good term....and then double checking making sure you're taking advantage of all your legal deductions
lesegouts
·3 years agoMaybe slightly off topic, but how are you measuring cost of the inherited items?
nobody*s_perfect
·3 years agoIRS says to use their value at the time that you inherited them.
angrysnail
OP3 years agoThey are all collectibles so I am using book values, auction results (not mine) etc.
luckythewinner
·3 years agoThis is exactly why I use cash basis accounting and treat inventory as non-incidental material or sup-
plies. No inventory accounting so no issues!
angrysnail
OP3 years agoI've been warned to not do that because of the risk IRS will decide it is a hobby business and I would lose deductibility.
nobody*s_perfect
·3 years agoI think you just have to slog through all your transactions, and allocate each transaction to one of those categories. This very dilemma was discussed in a newspaper article I just read:
https://www.wsj.com/articles/sell-on-ebay-or-get-paid-on-venmo-you-probably-owe-the-irs-taxes-e97172e0?mod=lead_feature_below_a_pos1
angrysnail
OP3 years agoYes and no. The question is how do I separate them? Both sections ask for the 1099-K info. Do I split the dollar amount? How do I enter the same form twice without a) doubling my liability, or b) triggering a delay or audit by list 2 K forms neither of which match what ebay issued?
monica-sells
·3 years agoI would get a pro opinion on this, but I think you can 'split' the amounts (enter on different areas of your return) but I don't think the home software can handle that......
I only say that because I have cash sales (from one source), retail sales (from a completely different source) as well as the multiple 1099's I receive annually.......
in the past I have used 3 different "income" forms (Sch C, Cap Gains and the other one, 1065 i think) to claim the income to match the actual receipts/forms. They all end up on Page 1 of the 1040
dnasilver
·3 years agoConsult a CPA. If your inheritance was a large amount you should be using a CPA.