1099k Internet Sales

[zeros]

Client received 1099K ($20K) for selling items on the internet. These are items that he purchases and resells. Is the profit/loss simply put on the schedule C and reported?

[Gary2]

It's put on the Schedule C and reported, but I wouldn't say "simply." What other expenses are there? Driving to buy items? Advertising? Shipping? Does the net profit justify treating it as a business?

[dtlee]

Not sure of this, but one of my clients told me that the amount reported on his form includes the fees that he paid to the company processing the transactions as well as sales tax which was remitted to the state. Check to see what that that amount includes if the taxpayer can determine it.