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Hello,
My situation is fairly unique and therefore I'm unsure how to handle tax write-offs, payments, etc. I am endorsed by a supplement company and am compensated with product only. As part of my contract I am free to use this product as I see fit. In an effort to turn this product into cash I sell it on Ebay. At the end of the year I receive a 1099 for the total value of product received, I write off mileage, expenses, etc., and pay taxes on that compensation. The question is...
Is the sale of these items on Ebay considered a separate business for which I can deduct Ebay fees, Paypal fees, shipping, packaging, etc? Do I handle both as separate entities? Any input would be greatly appreciated as I'm trying to determine if this method of payment is worth the opportunity cost and additional taxes.
My situation is fairly unique and therefore I'm unsure how to handle tax write-offs, payments, etc. I am endorsed by a supplement company and am compensated with product only. As part of my contract I am free to use this product as I see fit. In an effort to turn this product into cash I sell it on Ebay. At the end of the year I receive a 1099 for the total value of product received, I write off mileage, expenses, etc., and pay taxes on that compensation. The question is...
Is the sale of these items on Ebay considered a separate business for which I can deduct Ebay fees, Paypal fees, shipping, packaging, etc? Do I handle both as separate entities? Any input would be greatly appreciated as I'm trying to determine if this method of payment is worth the opportunity cost and additional taxes.