@walesmaven wrote:
If you have experience buying items, say at charity shops, and then reselling on Ebay, do you use Form 1040 Schedule C for that? (Of course, separate from MS Schedule C). I have had small businesses for 50+ years, but never before with inventory accounting needed.
Do you claim travel costs to buy sites and to and from shipping points? I assume so.
Do you need records of exactly what you paid for each item so that you can match that with sale prices and shipping costs or, or or??? Or do you look at total cost of goods in inventory at the start of the tax year compared with at the end of the tax year and then total sales for the year?
I've personally never been audited, but my stuff always goes through my CPA just fine.
In short, you have the right idea on what to write-off as expenses.
Applicable travel costs in mileage, materials needed for the job (packaging materials, tape, boxes, etc.), weight scale, etc.
As for individual sales: End-revenue after platform fees and shipping, minus actual out of pocket cost (with receipt, if you're making stuff just write off the manufacturing costs, etc.).
Like mystery shopping, best to have documentation in case that ever occurs and itemize it for easy searching. An audit is unlikely unless you're doing something really sketchy in terms on how you're claiming your write-off's anyways.
Shopping the Greater Denver Area, Colorado Springs and in-between in Colorado. 33 year old male and willing to travel!