Hi there. Great video but I have one question. How do you take into account the money spent to acquire the items that you sell? For example you spend $100 on an item for resale, and then you sell it for $150. Does that $100 come into play in the taxes? Edit: I've just found it in the video
FINALLY, someone who has some common sense and values time! all the other videos I have watched are talking about typing out every single item. THANK YOU!!!!!!!
Holy cow. My wife and I have been looking for something with this information for at least 2 months now. We've even hired a tax specialist and still I had questions. This is incredibly helpful less than two minutes in already. THANK YOU SOOOOOO MUCH for your information and taking the time out to do this. I subscribed and liked and saved this video almost immediately.
As Chris stated, please consult an accountant before doing the cash method. Your total paid inventory is not all cogs until sold. It's considered an asset until sold. Your accountant will be able to walk you through making sure everything is correct before submitting to the IRS
Concerned with the COGS - Many of the items I sell I have had for many many years and do not have either receipts or bank statements for. How are these items shown or reported? I sell a lot of clothing that I have purchased years ago and decide to re-sell, but again, do not have receipts or bank statements for. Any suggestions? Thanks
Always very helpful Chris! You keep it very simple and easy to understand. Thank you. As my 1st year as a reseller I am clueless to what I need for taxes. Thank you for this info and video.
Thank you so much! We are just setting up our store which I've sourced for over the last year and we are really excited to get started. But the taxes and the inventory, that's the tricky part. We will definitely utilize 1-800 taxes and really appreciate your video at this time. Perfect timing! Love all of your videos BTW. Found you just recently.
This really helps. This is my first year making more than $600 on eBay, so I was worried about how much I would owe in taxes. I've been dreading it all year.
Hey Chris I do my own taxes for my regular W2 job, but it seems pretty easy and straightforward for ebay too, my only concern is you didn't mention if you paid quarterly taxes and how do you estimate how you much you pay?
If your going to do them yourself, make sure you do plenty of research on your tax deductions so the government doesn't get over on you. Or talk with someone who will put you up on game. You live and learn tho, getting better every year. I'm excited to learn more and more ❤
Thank you for the video, very useful and instructive. BTW, can you explain what category do we have to use to enter the ebay and shipping label fees in tax preparer SW like TurboTax?
Thank you for this extremely informative video! I have watched some videos where people track every single item and break down every every single fee, per item they sell. That's why I have limited my eBay listings in the past. When you're a one man band working another job, who has time to devote 2 hours of bookkeeping every week? I knew there had to be an easier way. I'm definitely going to try this approach. Thanks again!
Sorry to bother you, had to ask if this copy of this spreadsheet worked for you, I made a copy but it will not function for me. Thanks for any feedback. Have a great day
Simpler in some ways than the video I made. I do like how you only have a few numbers to add. COG might be a little annoying, but still not too bad. Thanks for the info, Chris!
A very useful video with information. I think it’s simple enough to me now that I can continue using turbo tax, like I have been using for last 12 years, however, this year I will be adding small business part to it. Thank you
I appreciate your tax advise! We often set up our own system but not sure if it’s the best! But you’ve reassured me! 👍 keeping it simple .. keeping a log! 👍
You don’t have to have a CPA. You have all the power. If you don’t understand your finances and your business then you won’t be able to help your accountant do what’s best for you.
@Kelly Brian sure. I actually did a video on my channel addressing this. Small businesses (under 26 MILLION) can expense inventory at the time of purchase. No inventory is needed to be kept. Some people try to say that if inventory is kept then we can’t write it off as an expense, but the nature of reselling means we have an inventory on the platforms and the IRC states that if the nature of the business requires it and the business is under 26 million gross then the business can still write off the inventory at purchase.
Good to know. I'm at $400ish right now and just stopped all my auctions on ebay. I'm not paying taxes selling my own personal items that I already paid taxes on when I bought them. I'll sell offline.
Hi Chris, I've been following you methods and record keeping for > 2 years, and I have to say you always have a straightforward way of getting your point across. You've helped us in our reselling business. We've been using your chronological inventory system with the same type of boxes you recommended since you taught it here in youtube (it's awesome to find items so easily and quickly!) I do have a question - about the COGS: If you record all COG that you bought (sold or not sold yet), wouldn't that dramatically affect the bottom row? I am doing the line by line that you showed before so I know exactly how much the COGS amount is for all the items sold (not all of the COG I bought). I also know how much I have left in the inventory. Please clarify. I want to make the process as simple as possible. Thank you fo all that you do.
How did you get this spreadsheet to work for you, I made a copy but thats all it is, the sheet will not do the math, its not working. Would appreciate any info on success you had with it
FABULOUS fabulous!! Thank you so much for this very informative video! And just to be clear, you do not log every individual item in your inventory in a spreadsheet? I actually quit doing that a couple of years ago but always wanting to hear others’ best practices. Again, huge thanks Chris!
U can deduct the cost of storage for the items in ur home…it’s a business and it’s out of ur home…u can actually deduct a portion of the cost of ur home including utilities…it’s taking up space in ur home and u use the utilities to keep the items in selling condition so absolutely u can deduct the space u use for selling…u take the square footage used and deduct from the total sq ft of ur home and use the percentage of the amount it costs for u to have ur home…rent or mortgage taxes and insurance and utilities..example if u sell health and beauty products like hair dye etc…u can’t store it anywhere that’s not climate controlled …otherwise it’s useless product. Same with ur internet and computer and camera and also.,space to take pictures…use any deduction u can to be able to keep more of ur money ! It’s ur money..keep it! This would actually be a good business idea for someone who can figure this tax crap out to perfection…I foresee alot of taxes being paid that shouldn’t be…
Awesome content and very timely; thank you so much! I have a question however; you deducted shipping fees from your gross total. Ebay deducts shipping fees from my available funds and deposits the remainder into my bank account. It's my understanding that what Ebay actually deposits is what's reported on the 1099-Form. Therefore, deducting shipping fees again would be "double dipping" on those costs. Any clarification is much appreciated!!!! Thank you again!
Ok I file self employed . I am a painter/ sheetrocker it gets slow December - February. I have 2 children i use for dependants. I typically receive almost 6k for taxes. However I've made at least 8k in a year on eBay maybe even 10k im not sure yet. My question is Will i owe sam . Or will my usual pay go up or down with my same 2 dependant.
Very informative, however I think you lost me at 'how to find "Ebay refunds/credits"' number. How exactly do I get that number? Im aware that on my 1099k form, the number was a bit higher, but what do I subtract from it to get that refunds/credits number?
your total expenses are $14052.1, From where is that number is coming? ebay fees+ shipping labels+ cost of COGS + Storage+ Mileage=??? those are the expenses I see
The free consultation by 1800accountant is a waste of your 30 minutes as they will plug their business for 26 minutes and give you 4 minutes to talk about your business.
Couple things. The shipping cost. Are you assuming people do free shipping? Or are you deducting the different of shipping charged vs what you paid. Also, if you're using house for work you can deduct percentage use in bills etc
Um.. I'm a little lost, shouldn't the total expenses add up to $15,485 ? Making the Total you owe taxes on $9076? Just want to make sure I'm clear on this..
Number on 1099K line 1a is bigger than the Total Sales (including sales tax). Is it because 1a includes return refund? If so, Schedule C line 1 should be 1099K 1a, and Schedule C line 3 should be Total Sales (including sales tax) from ebay performance page? We calculate the difference and that would be for Sch C line 2? Then tax is considered an expense that we will deduct? Damn confusing, isn't it.
Hi, I’m new here. Thanks so much for this video. It is helping me simplify things I was doing before. I had a question about the comment near the beginning of the video on how posting eBay links on Instagram or other stuff can be harmful to the algorithm. Can you expound on that some more or do you have another video that talks about that? Thanks. I’m always trying to figure out the secrets to eBay’s algorithm because they sure don’t seem transparent about it…. Still love eBay though.
Hello Chris, Thank you for the excellent video! I have dabbled on eBay every now and again since 2019 so I haven't made a lot of money, maybe $1300 for a given year. I have never received a 1099 for any year. I read somewhere that the implementation of the eBay 1099s wouldn't be until tax year 2023 which led me to believe that I DID NOT have to claim what I made for the years prior. Is this correct? Thanks!
Great video, I have a question for you, a family member of mine is a packager for a major cosmetic line, she sold us a few items, would there be any trouble with the company they package for if we re sold products in large amounts?
If I sell something I bought years ago and I no longer have a receipt...someone said to use market price.. For example, many years ago I paid for $100 and now the market price is $45 and I sold it for $60 on Ebay. So I have to pay taxes because I made more than the market price? I thought if I sold less than what I originally bought I wouldn't be taxed? Not sure about this.
So i am a model railroader. I never intended to get into selling on ebay as a business. Selling on ebay has been my way to offload stuff I buy in impulse or just don’t want anymore. Last year I sold about 3,000 in locomotives. When weigh costs against sales, I wound up losing about $130.00 before ebay fees. Am I correct in assuming I owe no taxes because the cost of all the items I bought over the last few years outweigh what I made back? What if I made a profit on some items while losing on most others, would I be taxed on the items I profited on? Luckily I bought all my stuff online so I have all the email receipts detailing cost and shipping so I have the excel sheet loaded with every detail I need.
I have another question. If you pay for shipping costs outside of eBay’s payment system, say a credit card through pay pal, then those shipping costs would be accounted for below the “Total Deposits That Hit Your Bank Account” row 20 and not in row 15 “Shipping labels”, correct? Thanks for the help, love all your content, learning so much!
Great video definitely helps! Where on the sellers hub can you get the exact amount in fees you pay per month and shipping costs Ect. I just calculate it by hand per each transaction which is a lot. Is there a break down on eBay I can get the total number. Yhanks
Thank you for this Chris, very helpful. Have a question - What about ending inventory at the end of the accounting period in particular a full calendar year? How can you fully expense all purchases if the item was not sold during the period? If you shut your business and stopped selling completely you would still have all that inventory that you expensed to lower your taxable income but the inventory still has value. Not saying your method is incorrect but just l curious how this is factored in, if at all. Thanks, love all of your content!
I have the same question. Every single bit of my inventory right now was purchased last year or even the year before and I have no receipts for anything and have no clue what to do.
@@Mojo_Radio I kinda get that but on my bank statements it only shows for example $35 at Walmart it doesn't show that I bought tape and grocery items separately. Sometimes I forget to make separate transactions. It also sucks because I live in a very rual area and we have only one bank near us or I have to drive way into town mokes and miles to open a separate bank account. Then my biggest issue is I don't understand how to tally that fact that ALL my inventory I have to sell this year was actually purchased the years before so how can I write of the cost of goods, won't I be completely taxed on all of it? I'll have to get an adviser because people keep mentioning these terms like COGS and I'm like damn I don't even know what that is!
@@Starz1288 you do not count stuff you bought to sell as inventory until you actually put it up for sale. If it is not listed, it does not go into your calculations.
Great video. Only one question, for "cost of goods sold" how do you keep track of that? Are you saying that you enter the receipts for what you purchased that month into the "cogs?" or do you keep track of the cost of each individual item over the years and add up the total cogs as they sell?
All of our transactions run through our dedicated bank account. Payouts go into this account also. We break down cost of goods separately from supplies. Cash transactions are kept separate and later added to debit transactions. In other words, everything we need to know is in our bank records except cash transactions. After 45 years and multiple businesses, we try to keep it as simple as possible. You can also do complicared if you choose. I have better things to do with my time.
Assuming you keep "Inventory".. (which most eBayer's do) . Your COGS entered in the line, for the year or month, is supposed to ONLY what sold. When you do taxes, You are supposed to then enter the remaining Inventory Cost, at the end of the year. Ex: So, you paid $500 for inventory/merchandise, sold about half the items. You COGS is $250. And you have $250 Inventory left (which gets carried into the next year/month).
@@TechLeatherCraft I am curious - how do you account for personal owned items you hapoen to sell from your own things, as there isbusually not a receipt avail?
For very small sales at a consignment shop ($500 per month) , can I do cash accounting? Or do I have to get rid of my inventory before end of each year to avoid that
I'm using your spreadsheet for 2022 taxes and, once I figure some things out, I'm going to love it. The eBay refunds/credits is confusing to me. I have a smallish store, and sometimes on my performance sales report my net sales amount is smaller than the amount eBay sent me, which gives me a negative number?? Can this be right?? Also, I really wish you had included a copy of your sales report from ebay to show us exactly where you are pulling your numbers from. for example, the "Taxes and Fees" amount. In my reports, the "Taxes and Fees" amount is always zero; however, beside the Taxes and Fees amount (which is zero) there is another number that says "Collected by eBay." Please explain which amount I am supposed to use in your spreadsheet. With just a little help here, I'll be good to go. Thanks so much!
Great info! I have a question how do you go about paying yourself/begin using the money for personal use? Do you send a monthly or weekly amount to your personal bank account and write that down? I will be reporting as a sole proprietor
If you didn’t set up the bank account… I wish ppl would start there cause many people don’t think about that before starting or they may think eBay was gonna be a few casual sales and it turns into something much more later that year..
Hey Chris, I sell about $3000 a year of stuff that I collected from 30 years ago. What do I put as inventory? I don't want to carry an inventory because it wasn't bought for inventory and I don't know what to do with the lines that ask for a beginning and ending inventory on the schedule C?
@@StephRenee812 BC's comment is posted twice. Daily Refinement responded on the other comment. "Just put what you are comfortable with, as long as it’s reasonable, the irs will be okay."
Ebay hub now calculates all fees, shipping labels and refunds. Can I use these amounts to offset the gross amount sent in a 1099K? Also. What is the "Ebay revenue"? Is it what is sent to me as a 1099K gross amount?
Your video is helpful Could you please tell me what IRS form or forms and what line in the 1040 form do I apply the final result Keep in mind I do this as a hobby not a business and I made 5000 dollars or less Thank you
In regard to cost of goods sold, we have items we bought years ago (action figures) but no longer have the receipts. How can we calculate the original cost of the item?
i understand that this is fine pulling taxes like at year end when you have no records otherwise. what do you do for day to day bookkeeping? or you don't do that? i'd hate to wait a whole month to find out that i've lost money, kinda need a pulse more often.
So how would you differ this guide for someone who’s not a reseller but say a collector. And you sell maybe only 50-100 items per year but those are big items $500+ each. Same advice? Can it be simplified for someone like that?
⭐️Click Here For A FREE $200 Value Consultation With A Small Business Accounting Expert
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Help me out, they sponsored this video and gave my audience a really good free offer
How do I find all the spreadsheets and other paperwork
@@bubbie23jw its at 1:51 in the video
@@FOCUSLIKEBULL thanks
Hi there.
Great video but I have one question. How do you take into account the money spent to acquire the items that you sell? For example you spend $100 on an item for resale, and then you sell it for $150. Does that $100 come into play in the taxes?
Edit: I've just found it in the video
FINALLY, someone who has some common sense and values time! all the other videos I have watched are talking about typing out every single item. THANK YOU!!!!!!!
Holy cow. My wife and I have been looking for something with this information for at least 2 months now. We've even hired a tax specialist and still I had questions. This is incredibly helpful less than two minutes in already. THANK YOU SOOOOOO MUCH for your information and taking the time out to do this. I subscribed and liked and saved this video almost immediately.
As Chris stated, please consult an accountant before doing the cash method. Your total paid inventory is not all cogs until sold. It's considered an asset until sold. Your accountant will be able to walk you through making sure everything is correct before submitting to the IRS
Concerned with the COGS - Many of the items I sell I have had for many many years and do not have either receipts or bank statements for. How are these items shown or reported? I sell a lot of clothing that I have purchased years ago and decide to re-sell, but again, do not have receipts or bank statements for. Any suggestions? Thanks
Always very helpful Chris! You keep it very simple and easy to understand. Thank you. As my 1st year as a reseller I am clueless to what I need for taxes. Thank you for this info and video.
Dude casually drops 15 mins of Valuable information and a spreadsheet. You are a legend sir
Wow Chris. Invaluable! This is what separates you from the pack! Great background also!
I talked to a H&R block person. They told me not to make it complicated and just show up with the numbers how much I made , lost and spent
Thanks! I’ve been putting off doing my taxes. Thanks for making it easy.
I’ve been procrastinating…. It’s my first time for Ebay lol
Yes! I am happy to see this!
My accountant told me if I give him just receipts , he will charge me more. 😂 I'm gonna add it all up, with a Google sheets formula of course.
The more work you do before submitting to the accountant will usually save you $$$
Same here. I calculate everything myself and bring the final number for the account. So I’m being charged less
Thank you so much! We are just setting up our store which I've sourced for over the last year and we are really excited to get started. But the taxes and the inventory, that's the tricky part. We will definitely utilize 1-800 taxes and really appreciate your video at this time. Perfect timing! Love all of your videos BTW. Found you just recently.
Thanks! This is really helpful as I’m about to get started with more than just occasional selling… Want to cover the bases for sure.
I would include gas on the spreadsheet, gas now a day is expensive. Thank you for this video and great tips.
If you are using the flat rate you can’t itemize for gas.
How about electric car
This really helps. This is my first year making more than $600 on eBay, so I was worried about how much I would owe in taxes. I've been dreading it all year.
Good thing is the IRS put a hold on the $600 threshold for a year
@@michaelgausman9214 well mine just came in the mail I was told by everyone to just file it. If I don't then I will be flagged
Hey Chris I do my own taxes for my regular W2 job, but it seems pretty easy and straightforward for ebay too, my only concern is you didn't mention if you paid quarterly taxes and how do you estimate how you much you pay?
If your going to do them yourself, make sure you do plenty of research on your tax deductions so the government doesn't get over on you. Or talk with someone who will put you up on game. You live and learn tho, getting better every year. I'm excited to learn more and more ❤
Love the multiple angles Chris! Making progress daily!
Lol I hate it! Its distracting and one always looks better then the other so then I don't like when it changes to the worse one lol 😆
Thank you for the video, very useful and instructive. BTW, can you explain what category do we have to use to enter the ebay and shipping label fees in tax preparer SW like TurboTax?
Thank you for this extremely informative video! I have watched some videos where people track every single item and break down every every single fee, per item they sell. That's why I have limited my eBay listings in the past. When you're a one man band working another job, who has time to devote 2 hours of bookkeeping every week? I knew there had to be an easier way. I'm definitely going to try this approach. Thanks again!
Sorry to bother you, had to ask if this copy of this spreadsheet worked for you, I made a copy but it will not function for me. Thanks for any feedback. Have a great day
You and Tech are big inspirations.
Simpler in some ways than the video I made. I do like how you only have a few numbers to add. COG might be a little annoying, but still not too bad. Thanks for the info, Chris!
With PayPal when they was working it was the best
Fantastic Video. Think you saved me a few Nerves there. So glad you made this.
Thanks Chris for another great video
A very useful video with information. I think it’s simple enough to me now that I can continue using turbo tax, like I have been using for last 12 years, however, this year I will be adding small business part to it. Thank you
I appreciate your tax advise! We often set up our own system but not sure if it’s the best! But you’ve reassured me! 👍 keeping it simple .. keeping a log! 👍
Thanks for this!! Will be seeing about a consultant with them as well!
awesome thanks dude! very helpful info!
Not all hero’s wear capes
Very helpful and immediately useful. Thanks!
Great video...thanks so much!!! Where can I find the total amount of refunds and credits please?
Great info! Thank you!
Thank you! I will contact them with questions. 👍🤗
You don’t have to have a CPA. You have all the power. If you don’t understand your finances and your business then you won’t be able to help your accountant do what’s best for you.
@Kelly Brian sure. I actually did a video on my channel addressing this. Small businesses (under 26 MILLION) can expense inventory at the time of purchase. No inventory is needed to be kept. Some people try to say that if inventory is kept then we can’t write it off as an expense, but the nature of reselling means we have an inventory on the platforms and the IRC states that if the nature of the business requires it and the business is under 26 million gross then the business can still write off the inventory at purchase.
Beginning and ending, yes
Do you need a business bank account to report expenses or it’s just helpful?
From my understanding it just makes it easier for us because it's seperated😊
Good to know. I'm at $400ish right now and just stopped all my auctions on ebay. I'm not paying taxes selling my own personal items that I already paid taxes on when I bought them. I'll sell offline.
A sole proprietor is a business and can have an EIN or use a SS number. It does not have to be a business checking, but it must be a separate account.
Chris, I am so glad I found this video! Just what I’ve been looking for to start on the numbers side of my business! Mahalo!🤙🏽
Love this! Thank you so much, is there an easy way to see the separated eBay fees and shipping costs on eBay?
Great video, but could you go into a little more detail about COGS total? Going from line by line to this is a little confusing only in that area.
Hi Chris, I've been following you methods and record keeping for > 2 years, and I have to say you always have a straightforward way of getting your point across. You've helped us in our reselling business. We've been using your chronological inventory system with the same type of boxes you recommended since you taught it here in youtube (it's awesome to find items so easily and quickly!) I do have a question - about the COGS: If you record all COG that you bought (sold or not sold yet), wouldn't that dramatically affect the bottom row? I am doing the line by line that you showed before so I know exactly how much the COGS amount is for all the items sold (not all of the COG I bought). I also know how much I have left in the inventory. Please clarify. I want to make the process as simple as possible. Thank you fo all that you do.
How did you get this spreadsheet to work for you, I made a copy but thats all it is, the sheet will not do the math, its not working. Would appreciate any info on success you had with it
@@reneeofpa9394 You have to make sure the formulas are added.
Where do you list supplies like bubble wrap, tape , boxes.? Do you consider it cost of goods? Thanks
Supplies are an expense.
We have a line for supplies.
We list them below COGS.
FABULOUS fabulous!! Thank you so much for this very informative video! And just to be clear, you do not log every individual item in your inventory in a spreadsheet? I actually quit doing that a couple of years ago but always wanting to hear others’ best practices. Again, huge thanks Chris!
I do not
U can deduct the cost of storage for the items in ur home…it’s a business and it’s out of ur home…u can actually deduct a portion of the cost of ur home including utilities…it’s taking up space in ur home and u use the utilities to keep the items in selling condition so absolutely u can deduct the space u use for selling…u take the square footage used and deduct from the total sq ft of ur home and use the percentage of the amount it costs for u to have ur home…rent or mortgage taxes and insurance and utilities..example if u sell health and beauty products like hair dye etc…u can’t store it anywhere that’s not climate controlled …otherwise it’s useless product. Same with ur internet and computer and camera and also.,space to take pictures…use any deduction u can to be able to keep more of ur money ! It’s ur money..keep it! This would actually be a good business idea for someone who can figure this tax crap out to perfection…I foresee alot of taxes being paid that shouldn’t be…
Great video. Can we add the cost of office supplies(printing paper, packing tape, thermal shipping labels, shipping envelopes/boxes) ?
You can
I was going to ask the same question as I already write them off as an expense.
I might be a bit slow but I am wondering when I would absolutely need to start paying taxes for my eBay sales? Is it a certain amount a month?
Super helpful. Thx Chris
Awesome content and very timely; thank you so much! I have a question however; you deducted shipping fees from your gross total. Ebay deducts shipping fees from my available funds and deposits the remainder into my bank account. It's my understanding that what Ebay actually deposits is what's reported on the 1099-Form. Therefore, deducting shipping fees again would be "double dipping" on those costs. Any clarification is much appreciated!!!!
Thank you again!
Can you take time to show exactly where you got the numbers from? I think I understand, but some of your words don't match the Performance, Sales tab.
Ok I file self employed . I am a painter/ sheetrocker it gets slow December - February. I have 2 children i use for dependants. I typically receive almost 6k for taxes. However I've made at least 8k in a year on eBay maybe even 10k im not sure yet. My question is Will i owe sam . Or will my usual pay go up or down with my same 2 dependant.
Very informative, however I think you lost me at 'how to find "Ebay refunds/credits"' number. How exactly do I get that number? Im aware that on my 1099k form, the number was a bit higher, but what do I subtract from it to get that refunds/credits number?
When you talk about writing down your receipts
Do you mean like an actual receipt or like just on a piece of paper?
your total expenses are $14052.1, From where is that number is coming? ebay fees+ shipping labels+ cost of COGS + Storage+ Mileage=??? those are the expenses I see
My "Total eBay Refunds/Credits" comes out as a negative number. More money hit my bank account from eBay then my total net sales. WHY?
beautiful background
Bro you rock
The free consultation by 1800accountant is a waste of your 30 minutes as they will plug their business for 26 minutes and give you 4 minutes to talk about your business.
Couple things. The shipping cost. Are you assuming people do free shipping? Or are you deducting the different of shipping charged vs what you paid. Also, if you're using house for work you can deduct percentage use in bills etc
Um.. I'm a little lost, shouldn't the total expenses add up to $15,485 ?
Making the Total you owe taxes on $9076? Just want to make sure I'm clear on this..
Number on 1099K line 1a is bigger than the Total Sales (including sales tax). Is it because 1a includes return refund? If so, Schedule C line 1 should be 1099K 1a, and Schedule C line 3 should be Total Sales (including sales tax) from ebay performance page? We calculate the difference and that would be for Sch C line 2?
Then tax is considered an expense that we will deduct?
Damn confusing, isn't it.
Thank you!!!😊😊😊. Question, when eBay collects the State Tax are they also collecting for your county? Thank you,
Hi, I’m new here. Thanks so much for this video. It is helping me simplify things I was doing before. I had a question about the comment near the beginning of the video on how posting eBay links on Instagram or other stuff can be harmful to the algorithm. Can you expound on that some more or do you have another video that talks about that? Thanks. I’m always trying to figure out the secrets to eBay’s algorithm because they sure don’t seem transparent about it…. Still love eBay though.
I thought the IRS is not applying the $600 rule this year and they are staying the $20k course?
Hello Chris, Thank you for the excellent video! I have dabbled on eBay every now and again since 2019 so I haven't made a lot of money, maybe $1300 for a given year. I have never received a 1099 for any year. I read somewhere that the implementation of the eBay 1099s wouldn't be until tax year 2023 which led me to believe that I DID NOT have to claim what I made for the years prior. Is this correct? Thanks!
On the schedule C do you ever fill out the beginning inventory and the ending inventory on Section 3 or can that be left blank
Great video, I have a question for you, a family member of mine is a packager for a major cosmetic line, she sold us a few items, would there be any trouble with the company they package for if we re sold products in large amounts?
Which eBay report are you using to come up with totals for each category? They have so many to download from, transaction report, financial report etc
Is this spreadsheet available? I know it used to be...
If I sell something I bought years ago and I no longer have a receipt...someone said to use market price.. For example, many years ago I paid for $100 and now the market price is $45 and I sold it for $60 on Ebay. So I have to pay taxes because I made more than the market price? I thought if I sold less than what I originally bought I wouldn't be taxed? Not sure about this.
So i am a model railroader. I never intended to get into selling on ebay as a business. Selling on ebay has been my way to offload stuff I buy in impulse or just don’t want anymore. Last year I sold about 3,000 in locomotives. When weigh costs against sales, I wound up losing about $130.00 before ebay fees. Am I correct in assuming I owe no taxes because the cost of all the items I bought over the last few years outweigh what I made back? What if I made a profit on some items while losing on most others, would I be taxed on the items I profited on? Luckily I bought all my stuff online so I have all the email receipts detailing cost and shipping so I have the excel sheet loaded with every detail I need.
Big Change! The $600 does not go into effect until 2023! ( You still need to pay your taxes!)
Great information, where do I find your spreadsheet link?
I have another question. If you pay for shipping costs outside of eBay’s payment system, say a credit card through pay pal, then those shipping costs would be accounted for below the “Total Deposits That Hit Your Bank Account” row 20 and not in row 15 “Shipping labels”, correct? Thanks for the help, love all your content, learning so much!
Did you find an answer to this question?
Instead of spending 2 hours at the bank setting up an account, spend 10 minutes at Chime.
Great video definitely helps! Where on the sellers hub can you get the exact amount in fees you pay per month and shipping costs Ect. I just calculate it by hand per each transaction which is a lot. Is there a break down on eBay I can get the total number. Yhanks
I believe you can access that info in reports.
Thank you! Very helpful info
Thank you for this Chris, very helpful. Have a question - What about ending inventory at the end of the accounting period in particular a full calendar year? How can you fully expense all purchases if the item was not sold during the period? If you shut your business and stopped selling completely you would still have all that inventory that you expensed to lower your taxable income but the inventory still has value. Not saying your method is incorrect but just l curious how this is factored in, if at all. Thanks, love all of your content!
I have the same question. Every single bit of my inventory right now was purchased last year or even the year before and I have no receipts for anything and have no clue what to do.
@@Mojo_Radio I kinda get that but on my bank statements it only shows for example $35 at Walmart it doesn't show that I bought tape and grocery items separately. Sometimes I forget to make separate transactions. It also sucks because I live in a very rual area and we have only one bank near us or I have to drive way into town mokes and miles to open a separate bank account. Then my biggest issue is I don't understand how to tally that fact that ALL my inventory I have to sell this year was actually purchased the years before so how can I write of the cost of goods, won't I be completely taxed on all of it? I'll have to get an adviser because people keep mentioning these terms like COGS and I'm like damn I don't even know what that is!
@@Starz1288 you do not count stuff you bought to sell as inventory until you actually put it up for sale. If it is not listed, it does not go into your calculations.
@@mitzisells But don't you need to wait until it sells to include it as an expense for taxes?
@@Starz1288 Separate bank account saves so much time and energy.
COG = cost of goods.
I’m wondering if eBay keeps track of our shipping? And is this spreadsheet you made something you are sharing for us to use as well? Thank you
Great video. Only one question, for "cost of goods sold" how do you keep track of that? Are you saying that you enter the receipts for what you purchased that month into the "cogs?" or do you keep track of the cost of each individual item over the years and add up the total cogs as they sell?
All of our transactions run through our dedicated bank account.
Payouts go into this account also.
We break down cost of goods separately from supplies.
Cash transactions are kept separate and later added to debit transactions.
In other words, everything we need to know is in our bank records except cash transactions.
After 45 years and multiple businesses, we try to keep it as simple as possible.
You can also do complicared if you choose.
I have better things to do with my time.
Assuming you keep "Inventory".. (which most eBayer's do) . Your COGS entered in the line, for the year or month, is supposed to ONLY what sold. When you do taxes, You are supposed to then enter the remaining Inventory Cost, at the end of the year. Ex: So, you paid $500 for inventory/merchandise, sold about half the items. You COGS is $250. And you have $250 Inventory left (which gets carried into the next year/month).
@@TechLeatherCraft I am curious - how do you account for personal owned items you hapoen to sell from your own things, as there isbusually not a receipt avail?
How do you account for the fact that you have deposits from the previous years December sales that hit your bank in January?
Are you familiar with the Australian tax report too?
Since you're adding up the amount of money spent each month at yard sales, estate sales, etc., is this filing on a cash basis versus accrual?
For very small sales at a consignment shop ($500 per month) , can I do cash accounting? Or do I have to get rid of my inventory before end of each year to avoid that
I'm using your spreadsheet for 2022 taxes and, once I figure some things out, I'm going to love it. The eBay refunds/credits is confusing to me. I have a smallish store, and sometimes on my performance sales report my net sales amount is smaller than the amount eBay sent me, which gives me a negative number?? Can this be right?? Also, I really wish you had included a copy of your sales report from ebay to show us exactly where you are pulling your numbers from. for example, the "Taxes and Fees" amount. In my reports, the "Taxes and Fees" amount is always zero; however, beside the Taxes and Fees amount (which is zero) there is another number that says "Collected by eBay." Please explain which amount I am supposed to use in your spreadsheet. With just a little help here, I'll be good to go. Thanks so much!
Same situation. Not sure why.
How do you compensate if you sell items for a friend. They will get the money and I get 10 % how do I do my Tracy’s if I’m keeping the profit
How do you use this spreadsheet when filing your own taxes? The IRS is asking for an itemized list of every sale.
Great info! I have a question how do you go about paying yourself/begin using the money for personal use? Do you send a monthly or weekly amount to your personal bank account and write that down? I will be reporting as a sole proprietor
My corporation pays myself weekly
@@dailyrefinement thanks for not answering the question
So I can just add up all of my receipts on a spreadsheet ? I don’t need to show him proof ?
If you didn’t set up the bank account… I wish ppl would start there cause many people don’t think about that before starting or they may think eBay was gonna be a few casual sales and it turns into something much more later that year..
Hey Chris, I sell about $3000 a year of stuff that I collected from 30 years ago. What do I put as inventory? I don't want to carry an inventory because it wasn't bought for inventory and I don't know what to do with the lines that ask for a beginning and ending inventory on the schedule C?
Did you ever get a answer?
@@StephRenee812 BC's comment is posted twice. Daily Refinement responded on the other comment.
"Just put what you are comfortable with, as long as it’s reasonable, the irs will be okay."
Ebay hub now calculates all fees, shipping labels and refunds. Can I use these amounts to offset the gross amount sent in a 1099K? Also. What is the "Ebay revenue"? Is it what is sent to me as a 1099K gross amount?
Thank you!
What about the cost of supplies like labels and Polly bags and all that? Would that be listed in the cost of goods area
Do you by chance have a form for EBAY & Amazon FBA together? I do both and I was not sure if you happen to do Amazon?
Spreadsheet at 5:30
Your video is helpful
Could you please tell me what IRS form or forms and what line in the 1040 form do I apply the final result
Keep in mind I do this as a hobby not a business and I made 5000 dollars or less
Thank you
In regard to cost of goods sold, we have items we bought years ago (action figures) but no longer have the receipts. How can we calculate the original cost of the item?
Yes, I want to sell some clothes I bought years ago and never wore, but it sounds like that will cost me more in taxes than if I go buy new things...
This is i always asked in every reseller channel but nobody can answer
i understand that this is fine pulling taxes like at year end when you have no records otherwise. what do you do for day to day bookkeeping? or you don't do that? i'd hate to wait a whole month to find out that i've lost money, kinda need a pulse more often.
So how would you differ this guide for someone who’s not a reseller but say a collector. And you sell maybe only 50-100 items per year but those are big items $500+ each. Same advice? Can it be simplified for someone like that?