How do I file?

[amor2]

I started investing very heavy into a number of Collectable cards and will be making a profit by either end of year but probably Early next year (not sure) My question is how should I file on my taxes so that I can deduct what I spent plus eBay and pp fees???  What I don’t want is to make 100k and not be allowed to deduct the 40k+ I spent in inventory and online fees. Also, what if I only make 30k of the total this year, and the remainder next year? This is why I’m asking for those of you who know what would make the most sense. Currently I file as a head of household. Thanks!

[1grandmashope_1]

I think you need to talk with your account and not the posters here.  This is a question to be posed to a professional money manager.  

Just my opinion.

I wish you much success in your new endeavor!

Best,

Grandma

[1grandmashope_1]

I meant to say accountant...sorry.

[aldente28]

There is a tax form for profit and loss from business, but you should research this on your own because people here can't give tax advice. Generally, you claim expenses on that form, or forms that you attach to it, along with revenue.

[theteamsetguy]

First of all I would strongly encourage you to hire a professional tax preparer or accountant to do your taxes and pose any questions. 

With that being said I'm not a accountant or tax preparer. Please do not take my advice without seeking the advice of a accountant, CPA, or professional tax preparer.

Unless you are a Corporation or LLC your income for tax purposes is based on a calendar year. Jan 1 thru December 31.

I hope you have kept good records. You should be able to subtract your eligible expenses from your sales to calculate your taxable income. For most sellers but not all on Ebay this will mean filling out a schedule C. You will need to consult professional to see which schedule you will need to file.

[cityslickercreations2004]

The first thing you need to do is to get your receipts in order.  Include all expenses such as shipping materials, postage, labels, etc.

There are a number of accounting/ business software programs available. One of the more popular programs is Quickbooks. You may not be ready to invest in software so at least get the info on a spreadsheet. Your accountant will thank you.

[southern*sweet*tea]

Everyone's situation is different. For those dollar amounts you definitely want to consult with a CPA or tax professional. Yes, it will cost money, but it will be money well spent. I personally wouldn't even touch numbers that big without professional help. (For comparison, my inventory costs this year are in the $50 range...)

[m60driver]

Maybe pay someone to get you set up on Quickbooks.  Once you get your accounts set up correctly it is pretty simple to use and at the end of the year it will save you and your accountant considerable time.   And the accountant's time saved is your profit and will more than pay for the subscription and set up costs.

[7606dennis]

I would advise you to consult your tax advisor rather than seek or put too much faith in tax advice received on these boards.

With regard to heavily investing in any type of collectibles, I urge caution.  Collect what you know and like in case the investment doesn't prove as lucrative as hoped.