Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Drbeth2000 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Ebay Inventory and Taxes Date: 3/19/2008 11:49 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I posted this on the self-employment board and they sent me here.

http://boards.fool.com/Message.asp?mid=26480948


I have an ebay store in which I sell collectibles. This started as a hobby, collecting them a little at a time. I started selling them on ebay a few years ago and discovered that people were willing to pay for these.

Well, this last year (perhaps due to the economy), people have been selling their collections for ridiculously low prices. I attend a convention every year that specializes in these items and bought about $2,000 worth of inventory. This was almost entirely a cash basis, but a few people accepted checks. But it was many individual people, and small amounts each time. This was almost impossible to keep track of. Not just the amounts I paid, but also the number of items and type.

I've also bought some off of ebay and whole collections from individual people. So, in all, last year I put about $4,000 into inventory. I figured out that I paid about $2 per item.

Now, last year I sold about $12,000 on ebay. After ebay and Paypal fees, it's about $9,000. I can also deduct the office space from my utilities, and travel expenses to the convention. But how do I deal with the inventory.

My average sale price is between $20 and $25. I sell around 50 items per month. (I also have a full time job and am married with 3 kids, so I don't put a lot of time and effort into it).

So how do I value the inventory? I sold off about half, I still have a lot of it. And some will probably never sell. It will not depreciate unless it is destroyed. In fact, I think it will go up in value.

I'm just confused as to how to do the taxes. So any help would be appreciated.

Thanks,

Beth

PS. My DH is self employed with a home office so I know how to do those forms and I do our taxes. I'm just confused about the whole inventory aspect.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

The Story Behind the Story
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement