Ebay Reseller COGS

Forum|Forum|1 year ago
May 22, 2024
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I acquire items and sell them on Ebay, hopefully for a profit. Some items I purchase individually, while others are purchased as a group of items. From what I understand, based on the qualifications, I don't have to keep track of my inventory, but I do keep track of my purchases. When it comes time to calculate COGS, where do these non-incidental materials and supplies get entered into TurboTax?

dsoile

Hello MNDesign

The formula for determining Cost of Goods Sold (COGS) is based off this: Beginning Inventory + Purchases = Ending Inventory + COGS, thus making the formula for COGS being: COGS = Beginning Inventory + Purchases - Ending Inventory. In the TurboTax software, the formula set up will be there. Thus, you will enter the purchases for these incidental items and materials under purchases, or specifically the area that will specify cost of supplies, materials, etc. Based on what you mentioned about not tracking inventory, you will enter beginning inventory as 0, ending inventory as 0, and your purchases will be whatever the cost to you for the materials