Correct location on schedule C for certain items

[bigdaddyhen1980]

I am trying to figure out where specifically certain totals should be reported on the Schedule C.  Specifically wondering about the Final Value fee eBay keeps, the promoted listing fees and shipping costs.  Would these go under the COGS section, or would they go somewhere under the business expenses section?

[rfmtm]

Typically COGS is for the items themselves and can include acquisition costs like shipping to you.

Expenses, like ebay fees, shipping supplies, postage, etc., get itemized in the expense section.

[soh.maryl]

Around tax time, we see quite a few questions here about taxes and quite a few people trying to be helpful.

Personally, if it were me, I'd think it might be worth it to invest in the advice of a tax professional.  (And, no, I am NOT an H&R Block employee).  

[toomuchstuffagain35]

Or call the IRS and ask.

They can actually be very helpful.

[rfmtm]

Besides seeking professional help, tax software like Turbo Tax and H&R Block programs will guide you through this.

[nobody*s_perfect]

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@bigdaddyhen1980 wrote: ... wondering about the Final Value fee eBay keeps, the promoted listing fees and shipping costs.  Would these go under the COGS section ...

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COGS = "cost of goods sold." So that's costs for the item itself. That doesn't include the expenses you incurred when selling it.

The most useful tool IMHO is the IRS's own instructions for Schedule C. For instance, the instruction for Line 18 says, "Include on this line your expenses for office supplies and postage." So there's your answer about postage. Likewise, it tells you which line to use for fees, vehicle expenses etc.  I suspect that the IRS doesn't care a lot about which exact line you put each expense on, since it all of the separate expenses entries just get added together for one grand total on line 28.

https://www.irs.gov/instructions/i1040sc

[monica-sells]

Don'r forget one of the overlooked ones for Sch C

I think it is Part IV

(if you are like me and live 10 miles (round trip) from the Post Office)

Note: I made over 200 trips to the Post Office in 2022

Standard mileage rate. 

The business standard mileage rate from January 1, 2022, to June 30, 2022, is 58.5 cents per mile. The business standard mileage rate from July 1, 2022, to December 31, 2022, is 62.5 cents per mile.

[toomuchstuffagain35]

Even if, like me, you only live 2.2 miles (round trip) from the PO, mileage adds up fast.