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1st year filing taxes in business: General Question

1st year filing taxes in business: General Question

Can't seem to figure out this one with my taxes, and figured the best place to ask is here where a lot of others have done this before:


Sold a lot of personal items around the home this year as I learned how to build my home business, and expand my dropshipping services.  Since this is technically merchandise I've sold for profit, do I consider these items to have 100% profit? Afterall, it was just stuff I would have otherwise given away.


I suspect I'm doing this wrong, but have NO idea how to report/recored the "cost" of these goods before I sold them. Also what forms do I put this info on? I promise not to hold anyone accountable for information posted in here as I'm just looking for some general guidance from others who have done before so that I can get through my first year of having to file such complex taxes. Thanks!





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Re: 1st year filing taxes in business: General Question

Re: 1st year filing taxes in business: General Question

in reply to Dec 16, 2013 8:30:26 AM

You really need to move this to the Seller's Board.


In short you need to file Form "C".   Buy a copy of Turbo Tax, it will help you greatly if you are doing your own taxes.


Items around your house you sold, unlikely sold for more than you paid, but if you can't find receipts to claim a loss, the easiest is to just set the cost at the value sold, so it is a wash.  Items that you bought for resale and have receipts for, of course have to be reported for their profit (or loss).  Don't forget all your operating costs, including postage, packing supplies, eBay/PayPal fees, and other expenses, which are all deductible.


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