Taxes & eBay :: 13/31

One of the biggest worries people have about eBay selling as a career is the taxes.  I'm here to tell you it's not that bad!  I filed when I sold years ago and I've filed as a self-employed seller the last 2 years.  I am thinking about getting an accountant this year because I worry I am missing some deductions. 

My tip for the day:  Save your receipts and track your mileage!  (All those trips to the thrift store add up!)

I am not a tax professional but I will share a few resources/tips that I use to make tax time easier.

  1.  Save your receipts!  From the thrift store, from that roll of tape you got at Wal-Mart, from the Post them all!  I have an envelope I keep by the computer and stick them all in there when I come home from a shopping trip.  If I have purchased items for personal use, I note the cost of those on the bottom.  Example: "-6.99 Steph shoes"
  2. Remember, you can only deduct the cost of items that have sold.  Inventory purchased but not yet sold cannot be written off.
  3.  If you purchase supplies on Amazon you can access your orders (and print receipts out) for at least a year after.  I like that.
  4.  I pay for Go Daddy bookkeeping through the eBay site.  It is amazing software and I love it.  Makes entering receipts and mileage so simple!
  5. Get a notebook to write things down that may be important later.  
  6. If you purchase clothing at a by-the-pound store, jot down the weight when that item sells.  That info should be right in your listing and it will make things much easier at tax time.
  7.  Speaking of mileage, there are lots of mileage apps on android and iTunes.
  8.  You can write off a percentage of your mortgage/rent/utilities if you have a dedicated area in your home that is used only for eBay
  9. I always file on
  10. I really wish I could think of one more but I can't right now.  :)
I'm sorry I can't be much more help with taxes.  I would HATE to steer someone in the wrong direction...this is such a serious thing.  I would highly suggest finding a professional to help you!

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