Ebay sales for tax purposes

As of when are hobby expenses not deductible?
As of April 2022, they are, according to Turbo Tax;


### TurboTax CD/Download

  1. Open your TurboTax software and continue your return
  2. Select the Federal Taxes tab (this is the Personal tab in TurboTax Home and Business)
  3. In the Wages & Income section, select I’ll choose what I work on
  4. Scroll down to Less Common Income. Select Start next to Miscellaneous Income, 1099-A, 1099-C
  5. Select Start next to Hobby income and expenses
  6. Answer Yes on Do you have hobby income or expenses?
  7. On the next screen, enter the Total income reported on your Form 1099-K. Don’t enter any expenses.
  8. Select Done
  9. To deduct the cost of items sold: while still in Miscellaneous Income, select Start next to Other reportable income
  10. Answer Yes on Any Other Taxable Income?
  11. Enter Form 1099-K in the Description field. Enter the total cost of the items sold in the Amount field as a negative number. Note that the amount can’t exceed the income reported on Form 1099-K.

Since the TCJA disallowed miscellaneous expenses as Schedule A deductions. Your step 7 confirms this, in the part that I bolded:

The total cost of items sold referenced in line 11 is just that - the cost of the items sold, which does not include expenses for your hobby.

AJ

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I would consider " convenience fee , print your own tickets fee and other fees they charge" the cost of the items sold.

If the cost of the goods sold ends up exceeding the amount that you get for the tickets that you re-sold (which they would have to, in order to show a loss), they are not deductible, per step 11:

AJ

2 Likes

Yes, I know that. One should just enter the exact amount one paid to have a zero.

Fixed that for you.

AJ

3 Likes