Do cancelled sales get reported on your 1099K? How do you treat these?

[tedbearz007]

I noticed a cancelled sale on my 1099K. I subsequently sold the same item the same year. How do you treat the cancelled sale?

[dhbookds · Accepted solution]

on the tax form you deduct refunds.........along with fees/shipping, etc.

[monica-sells]

It is a standard business "expense". You will find it on the Schedule C (Part 1, Line 2)

It is included on your 1099-K and must be deducted on Schedule C to reduce you tax liability for that income.

[mam98031]

@tedbearz007 

The amount reported on a 1099K is your Gross Receipts.  That is the total that went INTO your account.  Deductions for fees, shipping or refunds is NOT considered.  You need to reconcile the report.

[mam98031]

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

https://www.kiplinger.com/taxes/irs-free-file