eBay

sactoswede · ‎08-09-2021

I'm trying to figure out my profit.

My Net Order Proceeds from my Payments tab says $8.95 ($6.50 item price + $4.15 buyer paid shipping - $1.70 eBay fees)

But that doesn't take into account the $3.06 I paid out for shipping.

I'm guessing I need to take my $8.95 and subtract the $3.06 I actually paid for shipping to get my Real Profit of $5.89?

And if I get a 1099 from eBay for 2021, will they count my profit as $8.95 or do I have to do something special to tell the IRS it was really $5.89?

Thanks!

dj

wooden_flower · ‎08-09-2021

If issued, your 1099k will show $10.65. 6.50 + 4.15. On schedule C you enter the 10.65 as gross revenue, then show your costs of 1.70, 3.06 plus item cost - I assume you are buying items to sell, based on the number of items you have. You can also take a deduction for mileage if you go to the post office. Also, packaging materials if you have to buy tape, paper, packing peanuts, etc.

So your net taxable profit will be something less than the 5.89.

For 2021 most states use the federal minimum of 200 items and $20,000 in gross sales, but your profit is still reportable and taxable.

wooden_flower Volunteer Community Mentor.
eBay member since 2001.

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wooden_flower · ‎08-09-2021

If issued, your 1099k will show $10.65. 6.50 + 4.15. On schedule C you enter the 10.65 as gross revenue, then show your costs of 1.70, 3.06 plus item cost - I assume you are buying items to sell, based on the number of items you have. You can also take a deduction for mileage if you go to the post office. Also, packaging materials if you have to buy tape, paper, packing peanuts, etc.

So your net taxable profit will be something less than the 5.89.

For 2021 most states use the federal minimum of 200 items and $20,000 in gross sales, but your profit is still reportable and taxable.

wooden_flower Volunteer Community Mentor.
eBay member since 2001.