How to Do Your eBay Taxes in 5 Minutes (No More Line by Line)

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[@dailyrefinement]

⭐️Click Here For A FREE $200 Value Consultation With A Small Business Accounting Expert 1800accountant.me/34AkElK

[@dailyrefinement]

Help me out, they sponsored this video and gave my audience a really good free offer

[@bubbie23jw]

How do I find all the spreadsheets and other paperwork

[@FOCUSLIKEBULL]

​@@bubbie23jw its at 1:51 in the video

[@bubbie23jw]

@@FOCUSLIKEBULL thanks

[@wh0586]

Hi there. Great video but I have one question. How do you take into account the money spent to acquire the items that you sell? For example you spend $100 on an item for resale, and then you sell it for $150. Does that $100 come into play in the taxes? Edit: I've just found it in the video

[@mrxquisite]

As Chris stated, please consult an accountant before doing the cash method. Your total paid inventory is not all cogs until sold. It's considered an asset until sold. Your accountant will be able to walk you through making sure everything is correct before submitting to the IRS

[@JWBR84]

Holy cow. My wife and I have been looking for something with this information for at least 2 months now. We've even hired a tax specialist and still I had questions. This is incredibly helpful less than two minutes in already. THANK YOU SOOOOOO MUCH for your information and taking the time out to do this. I subscribed and liked and saved this video almost immediately.

[@coldworldandrew385]

I talked to a H&R block person. They told me not to make it complicated and just show up with the numbers how much I made , lost and spent

[@Ryan-zz2pj]

FINALLY, someone who has some common sense and values time! all the other videos I have watched are talking about typing out every single item. THANK YOU!!!!!!!

[@kansashortcake]

Always very helpful Chris! You keep it very simple and easy to understand. Thank you. As my 1st year as a reseller I am clueless to what I need for taxes. Thank you for this info and video.

[@Miranda3730]

My accountant told me if I give him just receipts , he will charge me more. 😂 I'm gonna add it all up, with a Google sheets formula of course.

[@5797029]

The more work you do before submitting to the accountant will usually save you $$$

[@natalia______8996]

Same here. I calculate everything myself and bring the final number for the account. So I’m being charged less

[@slademoore725]

Dude casually drops 15 mins of Valuable information and a spreadsheet. You are a legend sir

[@1991windsor]

Thank you for this extremely informative video! I have watched some videos where people track every single item and break down every every single fee, per item they sell. That's why I have limited my eBay listings in the past. When you're a one man band working another job, who has time to devote 2 hours of bookkeeping every week? I knew there had to be an easier way. I'm definitely going to try this approach. Thanks again!

[@reneeofpa9394]

Sorry to bother you, had to ask if this copy of this spreadsheet worked for you, I made a copy but it will not function for me. Thanks for any feedback. Have a great day

[@bignapolean3068]

This really helps. This is my first year making more than $600 on eBay, so I was worried about how much I would owe in taxes. I've been dreading it all year.

[@michaelgausman9214]

Good thing is the IRS put a hold on the $600 threshold for a year

[@StephRenee812]

@@michaelgausman9214 well mine just came in the mail I was told by everyone to just file it. If I don't then I will be flagged

[@aspiringnetworkengineer1704]

Wow Chris. Invaluable! This is what separates you from the pack! Great background also!

[@flippingnic2983]

Thank you so much! We are just setting up our store which I've sourced for over the last year and we are really excited to get started. But the taxes and the inventory, that's the tricky part. We will definitely utilize 1-800 taxes and really appreciate your video at this time. Perfect timing! Love all of your videos BTW. Found you just recently.

[@johnl9135]

I would include gas on the spreadsheet, gas now a day is expensive. Thank you for this video and great tips.

[@sarahandclinton06]

If you are using the flat rate you can’t itemize for gas.

[@Gangelizedtreasures]

Thanks! I’ve been putting off doing my taxes. Thanks for making it easy.

[@patriciarodriguez0429]

I’ve been procrastinating…. It’s my first time for Ebay lol

[@wilsonv8487]

Hey Chris I do my own taxes for my regular W2 job, but it seems pretty easy and straightforward for ebay too, my only concern is you didn't mention if you paid quarterly taxes and how do you estimate how you much you pay?

[@MistrettasMedia]

If your going to do them yourself, make sure you do plenty of research on your tax deductions so the government doesn't get over on you. Or talk with someone who will put you up on game. You live and learn tho, getting better every year. I'm excited to learn more and more ❤

[@cclovelacegrace]

Yes! I am happy to see this!

[@Rikkivlogs33]

Can you do a video on how to file taxes on items that don’t have receipt like items from yard sales and markets

[@TheLazyThrifterCo]

Simpler in some ways than the video I made. I do like how you only have a few numbers to add. COG might be a little annoying, but still not too bad. Thanks for the info, Chris!

[@sawcheryl]

You don’t have to have a CPA. You have all the power. If you don’t understand your finances and your business then you won’t be able to help your accountant do what’s best for you.

[@sawcheryl]

@Kelly Brian sure. I actually did a video on my channel addressing this. Small businesses (under 26 MILLION) can expense inventory at the time of purchase. No inventory is needed to be kept. Some people try to say that if inventory is kept then we can’t write it off as an expense, but the nature of reselling means we have an inventory on the platforms and the IRC states that if the nature of the business requires it and the business is under 26 million gross then the business can still write off the inventory at purchase.

[@dennisferguson9129]

Beginning and ending, yes

[@PreciousMe]

Concerned with the COGS - Many of the items I sell I have had for many many years and do not have either receipts or bank statements for. How are these items shown or reported? I sell a lot of clothing that I have purchased years ago and decide to re-sell, but again, do not have receipts or bank statements for. Any suggestions? Thanks

[@sawcheryl]

A sole proprietor is a business and can have an EIN or use a SS number. It does not have to be a business checking, but it must be a separate account.

[@Yazzie101]

I appreciate your tax advise! We often set up our own system but not sure if it’s the best! But you’ve reassured me! 👍 keeping it simple .. keeping a log! 👍

[@WorldWideHipHopVideos]

With PayPal when they was working it was the best

[@BrentLea859]

Love the multiple angles Chris! Making progress daily!

[@Starz1288]

Lol I hate it! Its distracting and one always looks better then the other so then I don't like when it changes to the worse one lol 😆

[@papabear4066]

A very useful video with information. I think it’s simple enough to me now that I can continue using turbo tax, like I have been using for last 12 years, however, this year I will be adding small business part to it. Thank you

[@kratos2022lum]

Thank you for the video, very useful and instructive. BTW, can you explain what category do we have to use to enter the ebay and shipping label fees in tax preparer SW like TurboTax?

[@CherryPie0nRS]

Great video, but could you go into a little more detail about COGS total? Going from line by line to this is a little confusing only in that area.

[@w8what575]

U can deduct the cost of storage for the items in ur home…it’s a business and it’s out of ur home…u can actually deduct a portion of the cost of ur home including utilities…it’s taking up space in ur home and u use the utilities to keep the items in selling condition so absolutely u can deduct the space u use for selling…u take the square footage used and deduct from the total sq ft of ur home and use the percentage of the amount it costs for u to have ur home…rent or mortgage taxes and insurance and utilities..example if u sell health and beauty products like hair dye etc…u can’t store it anywhere that’s not climate controlled …otherwise it’s useless product. Same with ur internet and computer and camera and also.,space to take pictures…use any deduction u can to be able to keep more of ur money ! It’s ur money..keep it! This would actually be a good business idea for someone who can figure this tax crap out to perfection…I foresee alot of taxes being paid that shouldn’t be…

[@x.s.bleeding7780]

Fantastic Video. Think you saved me a few Nerves there. So glad you made this.

[@ranimartin1164]

Hi Chris, I've been following you methods and record keeping for > 2 years, and I have to say you always have a straightforward way of getting your point across. You've helped us in our reselling business. We've been using your chronological inventory system with the same type of boxes you recommended since you taught it here in youtube (it's awesome to find items so easily and quickly!) I do have a question - about the COGS: If you record all COG that you bought (sold or not sold yet), wouldn't that dramatically affect the bottom row? I am doing the line by line that you showed before so I know exactly how much the COGS amount is for all the items sold (not all of the COG I bought). I also know how much I have left in the inventory. Please clarify. I want to make the process as simple as possible. Thank you fo all that you do.

[@reneeofpa9394]

How did you get this spreadsheet to work for you, I made a copy but thats all it is, the sheet will not do the math, its not working. Would appreciate any info on success you had with it

[@mentallyinadifferentuniverese]

@@reneeofpa9394 You have to make sure the formulas are added.

[@bdog573]

You and Tech are big inspirations.

[@bubbie23jw]

Thanks Chris for another great video

[@WellnessWizdom]

Instead of spending 2 hours at the bank setting up an account, spend 10 minutes at Chime.

[@Alt_Aly]

Good to know. I'm at $400ish right now and just stopped all my auctions on ebay. I'm not paying taxes selling my own personal items that I already paid taxes on when I bought them. I'll sell offline.

[@Liltwags16]

Thanks for this!! Will be seeing about a consultant with them as well!

[@benjaminsauder7926]

My "Total eBay Refunds/Credits" comes out as a negative number. More money hit my bank account from eBay then my total net sales. WHY?

[@RIJSA]

awesome thanks dude! very helpful info!

[@ljwhitmire200]

Very helpful and immediately useful. Thanks!

[@tarteauxframboises]

The free consultation by 1800accountant is a waste of your 30 minutes as they will plug their business for 26 minutes and give you 4 minutes to talk about your business.

[@edwina24313]

I like when eBay show you how much you made within 30 days lol Nice $3900 when I had 5 canceled transactions for $2000 so it’s already $1900 lol minus knowing I only made between $20-$25 after all eBay fees that’s giving me a total of $300 for 3 months lol .I buy used expensive preowned gucci wallets or sneakers paying for shoes $240 and selling on eBay for $300 taking fees shipping costs that’s around $25 in profit lol It all depends what you sell .

[@brandoc04]

Do you need a business bank account to report expenses or it’s just helpful?

[@marx769]

Great info! Thank you!

[@emilydetterer8511]

Can you take time to show exactly where you got the numbers from? I think I understand, but some of your words don't match the Performance, Sales tab.

[@irisheyes2161]

Thank you! Very good information!

[@patriciarodriguez0429]

Where do you list supplies like bubble wrap, tape , boxes.? Do you consider it cost of goods? Thanks

[@5797029]

Supplies are an expense. We have a line for supplies. We list them below COGS.

[@silverowlthrifter]

Big Change! The $600 does not go into effect until 2023! ( You still need to pay your taxes!)

[@waibaddayu]

Chris, I am so glad I found this video! Just what I’ve been looking for to start on the numbers side of my business! Mahalo!🤙🏽

[@AliseIam]

If you didn’t set up the bank account… I wish ppl would start there cause many people don’t think about that before starting or they may think eBay was gonna be a few casual sales and it turns into something much more later that year..

[@idearesell4246]

FABULOUS fabulous!! Thank you so much for this very informative video! And just to be clear, you do not log every individual item in your inventory in a spreadsheet? I actually quit doing that a couple of years ago but always wanting to hear others’ best practices. Again, huge thanks Chris!

[@dailyrefinement]

I do not

[@mjsmith9889]

Is this spreadsheet available? I know it used to be...

[@charlieguerrero4521]

I might be a bit slow but I am wondering when I would absolutely need to start paying taxes for my eBay sales? Is it a certain amount a month?

[@MCC4RTHY1]

Not all hero’s wear capes

[@JohnnysCards55]

Love this! Thank you so much, is there an easy way to see the separated eBay fees and shipping costs on eBay?

[@castelsposhcloset7166]

Thank you! I will contact them with questions. 👍🤗

[@derekkchung]

Number on 1099K line 1a is bigger than the Total Sales (including sales tax). Is it because 1a includes return refund? If so, Schedule C line 1 should be 1099K 1a, and Schedule C line 3 should be Total Sales (including sales tax) from ebay performance page? We calculate the difference and that would be for Sch C line 2? Then tax is considered an expense that we will deduct? Damn confusing, isn't it.

[@dianetellier1373]

Great video...thanks so much!!! Where can I find the total amount of refunds and credits please?

[@reneeofpa9394]

I can not use the sheet, I can fill in numbers but it is an exact copy of yours , not one I am able to use

[@akshataskitchen.dotcom]

Great video. Can we add the cost of office supplies(printing paper, packing tape, thermal shipping labels, shipping envelopes/boxes) ?

[@dailyrefinement]

You can

[@bobman-lo8hc]

I was going to ask the same question as I already write them off as an expense.

[@darian4131]

Super helpful. Thx Chris

[@syxxpoppin8830]

Ok I file self employed . I am a painter/ sheetrocker it gets slow December - February. I have 2 children i use for dependants. I typically receive almost 6k for taxes. However I've made at least 8k in a year on eBay maybe even 10k im not sure yet. My question is Will i owe sam . Or will my usual pay go up or down with my same 2 dependant.

[@jilow6356]

Where is this spreadsheet? I dont see the download link in the link description.

[@JoseFlores-ce7er]

your total expenses are $14052.1, From where is that number is coming? ebay fees+ shipping labels+ cost of COGS + Storage+ Mileage=??? those are the expenses I see

[@JamDecks]

I’m scared. I just sold old stuff I owned. I have no receipts or anything from my items I sold on eBay.

[@elcyonnellum5871]

On the schedule C do you ever fill out the beginning inventory and the ending inventory on Section 3 or can that be left blank

[@econrith]

You will be lucky to make more than 50p on five items each after the cost of buying in the first instance, the eBay fees and the postage costs are in that calculation. This makes your gross sum enormous but your actual profit sum minuscule. That is why everyone is leaving or accepting third world income.

[@jaydanto]

I thought the IRS is not applying the $600 rule this year and they are staying the $20k course?

[@isaacgonzalez687]

Very informative, however I think you lost me at 'how to find "Ebay refunds/credits"' number. How exactly do I get that number? Im aware that on my 1099k form, the number was a bit higher, but what do I subtract from it to get that refunds/credits number?

[@cardioandmanifest]

Spreadsheet at 5:30

[@reneeofpa9394]

I made a copy filled in my information but the form does not do the math, I can only fill in the columns, its not working for me

[@adraticofficial]

When you talk about writing down your receipts Do you mean like an actual receipt or like just on a piece of paper?

[@justinpack6546]

“I’m not an accountant so don’t sue me “😂

[@sfox1530]

I'm using your spreadsheet for 2022 taxes and, once I figure some things out, I'm going to love it. The eBay refunds/credits is confusing to me. I have a smallish store, and sometimes on my performance sales report my net sales amount is smaller than the amount eBay sent me, which gives me a negative number?? Can this be right?? Also, I really wish you had included a copy of your sales report from ebay to show us exactly where you are pulling your numbers from. for example, the "Taxes and Fees" amount. In my reports, the "Taxes and Fees" amount is always zero; however, beside the Taxes and Fees amount (which is zero) there is another number that says "Collected by eBay." Please explain which amount I am supposed to use in your spreadsheet. With just a little help here, I'll be good to go. Thanks so much!

[@benjaminsauder7926]

Same situation. Not sure why.

[@maliaevonne196]

Did everyone else hear him say you don’t need a business license just a separate business acct?

[@dailyrefinement]

Yep, you’re by default a sole proprietor, I think I say that ridiculously clearly in the video

[@lofiohio]

Why does only the February column calculate automatically?

[@momsfabulousfinds2806]

2022 mileage rate is 58.5 cents.

[@StoicBarbarian]

Just me or is math wrong at the end? It should be 15485 of expenses right?

[@gracecowanish]

Hi, I’m new here. Thanks so much for this video. It is helping me simplify things I was doing before. I had a question about the comment near the beginning of the video on how posting eBay links on Instagram or other stuff can be harmful to the algorithm. Can you expound on that some more or do you have another video that talks about that? Thanks. I’m always trying to figure out the secrets to eBay’s algorithm because they sure don’t seem transparent about it…. Still love eBay though.

[@retroconsole_]

If I sell something I bought years ago and I no longer have a receipt...someone said to use market price.. For example, many years ago I paid for $100 and now the market price is $45 and I sold it for $60 on Ebay. So I have to pay taxes because I made more than the market price? I thought if I sold less than what I originally bought I wouldn't be taxed? Not sure about this.

[@StoicBarbarian]

Um.. I'm a little lost, shouldn't the total expenses add up to $15,485 ? Making the Total you owe taxes on $9076? Just want to make sure I'm clear on this..

[@ryanlegras2919]

It says they closed the connection

[@warriorzmindset]

So I can just add up all of my receipts on a spreadsheet ? I don’t need to show him proof ?

[@redsoles174]

Awesome content and very timely; thank you so much! I have a question however; you deducted shipping fees from your gross total. Ebay deducts shipping fees from my available funds and deposits the remainder into my bank account. It's my understanding that what Ebay actually deposits is what's reported on the 1099-Form. Therefore, deducting shipping fees again would be "double dipping" on those costs. Any clarification is much appreciated!!!! Thank you again!

[@jorejaha]

eBay reports total sales minus govt taxes and fees. That's what it was for me last year. What confused me for a second was that total included all of my returns and refunds which I wasnt expecting. They had to be expensed out.

[@chriscash782]

How do you account for the fact that you have deposits from the previous years December sales that hit your bank in January?

[@phoneAmobileNotary]

Hello Chris, Thank you for the excellent video! I have dabbled on eBay every now and again since 2019 so I haven't made a lot of money, maybe $1300 for a given year. I have never received a 1099 for any year. I read somewhere that the implementation of the eBay 1099s wouldn't be until tax year 2023 which led me to believe that I DID NOT have to claim what I made for the years prior. Is this correct? Thanks!

[@matthewchaney7362]

beautiful background

[@ZackRemsen]

where is the spreadsheet download?

[@mcnewbs60]

Couple things. The shipping cost. Are you assuming people do free shipping? Or are you deducting the different of shipping charged vs what you paid. Also, if you're using house for work you can deduct percentage use in bills etc

[@Plantbasingit]

56 cents mileage deduction for 2021

[@Yawnsinbed]

4:28 how to do your taxes in order

[@arenavisionTV]

This was a really cool video. It helped out a lot. Thank you!

[@mnb3566]

I have another question. If you pay for shipping costs outside of eBay’s payment system, say a credit card through pay pal, then those shipping costs would be accounted for below the “Total Deposits That Hit Your Bank Account” row 20 and not in row 15 “Shipping labels”, correct? Thanks for the help, love all your content, learning so much!

[@DandyBeingTandi]

Did you find an answer to this question?

[@xtinct16]

This does not make any sense. This assumes that your are 100% making a profit for each sales which is not the case at all. As an example if you buy an item with the intention of flipping it for profit, lets say you buy a sneaker for $100 and you sold it on eBay for $200, why should you be taxed for $200?

[@lucygelz]

what about express payout fees how do they adjust to the amount that hits your bank account

[@junetse9416]

Hi Chris , thanks for your video. For the excel form on line 17, I had a negative amount for the ebay refund /credit. Why this happens? I did check my total sales amount and the exact amount that ebay deposit to me. I can't think anything that ebay credit so much for me ~ about $700 in difference.

[@mnb3566]

Thank you for this Chris, very helpful. Have a question - What about ending inventory at the end of the accounting period in particular a full calendar year? How can you fully expense all purchases if the item was not sold during the period? If you shut your business and stopped selling completely you would still have all that inventory that you expensed to lower your taxable income but the inventory still has value. Not saying your method is incorrect but just l curious how this is factored in, if at all. Thanks, love all of your content!

[@Starz1288]

I have the same question. Every single bit of my inventory right now was purchased last year or even the year before and I have no receipts for anything and have no clue what to do.

[@Starz1288]

@@Mojo_Radio I kinda get that but on my bank statements it only shows for example $35 at Walmart it doesn't show that I bought tape and grocery items separately. Sometimes I forget to make separate transactions. It also sucks because I live in a very rual area and we have only one bank near us or I have to drive way into town mokes and miles to open a separate bank account. Then my biggest issue is I don't understand how to tally that fact that ALL my inventory I have to sell this year was actually purchased the years before so how can I write of the cost of goods, won't I be completely taxed on all of it? I'll have to get an adviser because people keep mentioning these terms like COGS and I'm like damn I don't even know what that is!

[@mitzisells]

@@Starz1288 you do not count stuff you bought to sell as inventory until you actually put it up for sale. If it is not listed, it does not go into your calculations.

[@travisrusko]

@@mitzisells But don't you need to wait until it sells to include it as an expense for taxes?

[@5797029]

@@Starz1288 Separate bank account saves so much time and energy. COG = cost of goods.

[@artsoto5459]

Great video, I have a question for you, a family member of mine is a packager for a major cosmetic line, she sold us a few items, would there be any trouble with the company they package for if we re sold products in large amounts?

[@sarahandclinton06]

How do you use this spreadsheet when filing your own taxes? The IRS is asking for an itemized list of every sale.

[@SkitzoMFwittashovel777]

15 minutes*

[@mrsemifixit]

Which eBay report are you using to come up with totals for each category? They have so many to download from, transaction report, financial report etc

[@jorejaha]

Does ebay have your returns/refunds totaled somewhere?