I am calculating my gross sales. Do i add both buyers and my own shipping into gross sales?

[dietsoap]

Basically im calculating my gross sales to fill out my schedule c for income tax.  I know that youre supposed to add how much an item sells for+ shipping that buyers pay and that comes out to gross sales. But what if for some of my sales, i paid for shipping instead. do i still add that to my gross sales? Also i sold an item but did not weigh it properly before i entered a calculated shipping cost for the buyer. Buyer paid 12.47$  but, the total shipping price was 19.82 after i put in the correct weight. I sucked it up and paid the  remaing 7.35$ of the shipiping price.  Would i add the 19.82+ the amount my item sold for =gross income.  This is my first year doing ebay taxes so im learning the ropes. Please have mercy and not roast me lol. 

[714ricki]

You need to be careful in not to confuse what is gross sale amount versus business deduction amounts. The gross amount will be the price of the item + the shipping charge paid by the buyer. The actual total cost for the shipping label from your wallet/funds will be the shipping label charge deduction. As an online seller, there are a few business deduction buckets. Don't be afraid to ask these questions to a tax preparer, CPA, or financial advisor. Everyone has different methodologies per their respective state. Consult the financial experts to be 100% sure.

Good luck! Let's toss him into the frying pan!! 😎🙏😁

[richard1rst]

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@dietsoap wrote:

Basically im calculating my gross sales to fill out my schedule c for income tax.  I know that youre supposed to add how much an item sells for+ shipping that buyers pay and that comes out to gross sales. But what if for some of my sales, i paid for shipping instead. do i still add that to my gross sales? Also i sold an item but did not weigh it properly before i entered a calculated shipping cost for the buyer. Buyer paid 12.47$  but, the total shipping price was 19.82 after i put in the correct weight. I sucked it up and paid the  remaing 7.35$ of the shipiping price.  Would i add the 19.82+ the amount my item sold for =gross income.  This is my first year doing ebay taxes so im learning the ropes. Please have mercy and not roast me lol. 

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The $12.47 you received is gross income. The $19.82 you paid is NOT income. It is a business expense which is DEDUCTED from your total sales. I strongly suggest that you consult with an accountant or, at the very least, one of the tax preparation companies. Considering the complexities of even basic returns I would recommend that you do not try to do it on your own, nor to seek advice on eBay. Especially as a beginner. Talk to a tax accountant. Their cost is a deductible expense and the information they provide more than pays for itself in a lower tax bill. There a ton of deductible expenses that you probably would not think of on your own.

[monica-sells]

"...But what if for some of my sales, i paid for shipping instead..."

You paid for the shipping in every sale (that is a deduction)

I will be as delicate as I can here and try to provide you with some advice.

The questions you ask are elementary accounting. (Accounting 101 if you will)

If you need to ask this question, as you progress throughout the Schedule C it does not get any easier. It can be daunting the 1st time you do it. You might miss important entries/deductions/credits.

As other members have pointed out. Depending on your individual situation, spending $100.00 on a qualified tax advisor, and saving you $200.00 in taxes might not be a bad investment. 

[infoandy]

The gross sale of your items would be the price of the item plus the shipping paid by the buyer. Do NOT include the sales tax paid by the buyer because that is paid to eBay not you. eBay will pay the sales tax to the buyer's state. So your gross sales just include price of the item and the shipping paid by the buyer. Your expenses (deductions) include the cost you paid for shipping (be it more or less than what the buyer paid) plus eBay's selling fees for the item plus the cost you paid for the item if you are reselling an item that you bought. If you have a store, you can add the monthly store fee as well. It's fairly straight forward, but do consult a tax expert if you are new to preparing a tax return.