Tax reporting question
Got a question for seasoned sellers, this is the first year that I have actually made any real money on ebay with items that I have bought specifically to sell, in the past its just been selling my old stuff randomly or a few things I'd pick up cheap and resell, typically less than $1000 a year coming in and probably less than $200 being actual profit.
This year is different since Im actually making money and will need to file it on my taxes, I've kept all of my reciepts from purchasing my inventory which I will deduct the cost of that from the payments I've received in paypal to get my actual profit, question is how do you guys handle postage?
When I ran a sales report in paypal it has all my postage on it as well (payments to USPS), I offer free shipping on probably 99% of my items so I'm the one paying the postage, do you deduct this from your profit as well as an expense or do you only deduct the cost of your inventory when filing?
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