Tax advice - eBay Suspension & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > General Discussions (Off-Topic) > Making Money

Making Money Flipping, Investing, You Name it. Letís discuss other ways of making money!

Reply
 
Thread Tools
  #1  
Old 04-19-2018
shootemup321's Avatar
Senior Member
 
Join Date: Jan 2017
Posts: 318
Thanks: 20
Thanked 30 Times in 24 Posts
Activity: 12%
Longevity: 19%
iTrader: (0)
Default Tax advice

How should I calculate up sales from EBay and PayPal? I sell on eBay and a eccommerce website that only takes PayPal as payment. it is under $20,000 for the 1099k form. I am wondering do I add up all the sales on eBay without fees then put eBay/PayPal fees as expenses? And For my website the gross income is added up I put that down then add PayPal fees to expenses am I right on this?

Also I heard you can just add up all the deposits in your bank accounts but that doesnít seem like the right way to do it if you were to be audited.

By the way I did file for extension so I have time to file this just trying to get it right.
Reply With Quote
The complete step-by-step guide to get back to selling today!

  #2  
Old 04-19-2018
Senior Member
 
Join Date: Sep 2017
Posts: 1,934
Thanks: 729
Thanked 430 Times in 332 Posts
Activity: 28%
Longevity: 13%
iTrader: (0)
Default Re: Tax advice

Money in - money out = profit.

And then there all off of your deductions.
Reply With Quote
  #3  
Old 04-19-2018
Senior Member
 
Join Date: Sep 2011
Posts: 3,125
Thanks: 11
Thanked 748 Times in 577 Posts
Activity: 3%
Longevity: 62%
iTrader: (0)
Default Re: Tax advice

We're not accountants, go to a profession, BUT:

Deposits won't be good enough, they'll want more granular data. Got to have all records, EB, PP and everything else down to the penny.

You can try to use one of the out of the box programs tax programs will work for you, they'll download your data and classify it by category.

I suggest you add up all the revenue, subtract all the expenses, and what's left is the profit. Whether you get a 1099 or not, you still pay taxes on the profit.
Reply With Quote
The Following User Says Thank You to dallis For This Useful Post:
shootemup321 (04-20-2018)
  #4  
Old 04-20-2018
Canadianleaf's Avatar
Senior Member
 
Join Date: May 2017
Posts: 986
Thanks: 403
Thanked 183 Times in 132 Posts
Activity: 54%
Longevity: 17%
iTrader: (0)
Default Re: Tax advice

I suggest you watch some very simple youtube videos on basic accounting for small business and how to fill out 1040 / 1040 C. 1040 C will be the form you use for your business profit / loss and like others have said it will require more granular data such as your COG's (Cost of Goods sold), other expenses, etc. Everything required will be shown on the 1040 C sheet for business as a sole prop.

For calculating profits for goods sold are basically:
Revenue - expenses (COG's) = profit


Any expense you incur to sell a product such as paypal / ebay fees, shipping/transporation fees, etc can be added up as a COG.

After you have your gross profit you can deduct other business expenses such as rent, vehicle costs, internet, phone, etc.

Im not an accountant.

Last edited by Canadianleaf; 04-20-2018 at 02:38 AM.
Reply With Quote
The Following User Says Thank You to Canadianleaf For This Useful Post:
shootemup321 (04-20-2018)
  #5  
Old 04-20-2018
shootemup321's Avatar
Senior Member
Threadstarter  
 
Join Date: Jan 2017
Posts: 318
Thanks: 20
Thanked 30 Times in 24 Posts
Activity: 12%
Longevity: 19%
iTrader: (0)
Default Re: Tax advice

Thanks for all the answers I spent the time today to calculate most of it up. I was stuck on how to get all the sales from eBay because you can’t get them for the full year so I went to PayPal and it has everything I needed there in the statements.

Does anyone know if I have to include refund transactions? cause I just left them out don’t seem like it would matter but I can always go back an add them if it’s required.

I figure it’s not worth paying accountant for the amount I made. Something like TurboTax program maybe.
Reply With Quote
  #6  
Old 04-20-2018
Senior Member
 
Join Date: Sep 2011
Posts: 3,125
Thanks: 11
Thanked 748 Times in 577 Posts
Activity: 3%
Longevity: 62%
iTrader: (0)
Default Re: Tax advice

A refund/return is an expense. It's a positive entry when credited/sold, a negative when debited/refunded.

It will zero out except for the portion of the PP charge that is never refunded, I think it's $.30..., and shipping charges both ways, which you probably can't recover. You'll need to account for them somehow, because they're a loss.

There may also be a factor for loss of value of the product if it was/is defective or damaged or is no longer sellable as new. This is often less easy to determine.

Example:

Widget: +$10 gross revenue
Outbound Shipping: -$2.69 = shipping expense
EB/PP Fees: -$1.66 = cost of sale

+10-2.69-1.66 = +5.65 Profit

Refund: -$10
Return Shipping: -$2.69
EB/PP Fees Refund: +$1.36 (1.66 - .30 unrecoverable PP fee )
+5.65-10+1.36-2.69= -$5.68 ( loss on sale )

This offsets $5.68 of profit, so it's of value to you, it's 5.68 of money you won't pay taxes of 21-33% on.

I think I did this correctly, it's 4AM, you should be able to get the general idea.

Last edited by dallis; 04-20-2018 at 03:22 AM.
Reply With Quote
The Following User Says Thank You to dallis For This Useful Post:
supermanxx (08-28-2018)
  #7  
Old 04-20-2018
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 7,788
Thanks: 1,540
Thanked 2,630 Times in 2,019 Posts
Activity: 98%
Longevity: 29%
iTrader: (2)
Default Re: Tax advice

TL;DR, lol.

If it's an expense it should be deducted. Refunds are expenses.
__________________
Reply With Quote
The Following User Says Thank You to phaz0rz For This Useful Post:
ebaystealth1974 (04-20-2018)
  #8  
Old 04-20-2018
Canadianleaf's Avatar
Senior Member
 
Join Date: May 2017
Posts: 986
Thanks: 403
Thanked 183 Times in 132 Posts
Activity: 54%
Longevity: 17%
iTrader: (0)
Default Re: Tax advice

stealth guide is a tax deductible business expense
Reply With Quote
  #9  
Old 04-20-2018
shootemup321's Avatar
Senior Member
Threadstarter  
 
Join Date: Jan 2017
Posts: 318
Thanks: 20
Thanked 30 Times in 24 Posts
Activity: 12%
Longevity: 19%
iTrader: (0)
Default Re: Tax advice

Alright I appreciate all the info, I understand now.
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hello and advice! osfman64 eBay Suspensions 5 01-25-2017 12:39 PM
Need some advice YEbayY PayPal Talk 6 11-20-2014 08:47 PM
need advice? Trep1690 UK PayPal Talk 7 02-20-2013 04:54 AM
Some Advice Please uk_making_chatters_disapp UK eBay & Paypal 5 09-30-2009 03:25 AM
Need advice. Please help. beus PayPal Talk 11 11-30-2008 01:16 PM


Aspkin Group

All times are GMT -5. The time now is 10:43 PM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts