Home  >  Community  >  The eBay Outlook  >  How do I claim eBay fees on my taxes??


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 cedar777
 
posted on September 28, 2001 11:21:55 AM new
I have read that eBay final value fees are tax deductible for the sole proprietor (people like you and me who don't sell tons on eBay, but enough to be taxable). How do I claim these if I am filing using schedule C-EZ? I also want to claim eBay listing and reserve fees if they are allowed. PLEASE HELP ME! I NEED TO FILE NOW! THANK YOU.

 
 tomyou
 
posted on September 28, 2001 11:37:23 AM new
be aware if you claim any e-bay related fees you have to declare all e-bay related income as well.

 
 cedar777
 
posted on September 28, 2001 11:59:23 AM new
Not a problem......I like to be different and plan to claim all income. But, HOW do I claim the fees??

 
 katiyana
 
posted on September 28, 2001 11:59:47 AM new
I believe most Ebayers who file their taxes for their Ebay activity use Schedule C and not C-EZ - They wouldn't qualify (see the top of the form with the flowchart like diagram).

Anyway, if you do use Schedule C-EZ Ebay fees along with all other expenses would go on line 2 Expenses. Note that if this number is greater than $2500 you can't use Schedule C-EZ.

Also I'm not sure why you'd file now, unless you have a fiscal year set to run from October through September??


[ edited by katiyana on Sep 28, 2001 01:00 PM ]
 
 ahc3
 
posted on September 28, 2001 12:05:22 PM new
Yes, 1040 Schedule C. I use a computer tax program to help, I find it useful as it does the calculations. Don't forget everything you can deduct besides the ebay fees. Since I run a business, I deduct my internet costs as well, etc. You can even deduct mileage back and forth from the post office.

 
 tomyou
 
posted on September 28, 2001 12:13:28 PM new
I am lazy, I have to have an accountant do mine, but schedule c is the form used. I dont know if you can do the EZ form and deduct and claim all the fees and service. If you use paypal or auction watch don't forget about those related fees as well.

 
 cedar777
 
posted on September 28, 2001 12:26:40 PM new
I'm filing using Schedule C-EZ since I don't have over $2500 in business expenses to deduct and I use the cash method in order to avoid inventory requirements.

So, does anyone know WHERE on Schedule C-EZ do I claim them??

For example, are eBay fees considered advertisement fees since eBay essentially promotes my sales for me? They seem like they should go under commissions and fees (line 11), but the explanations on Turbotax software lead me to think they go elsewhere. I've tentatively listed them under "Other business expenses not included on line 8-26."

Thanks for the tip on claiming Paypal fees! I forgot about them!! And I just realized I can claim Billpoint fees too!! And my photopoint webhost fees. Wow!

Any other great suggestions??

 
 misscandle
 
posted on September 28, 2001 12:41:27 PM new
Cedar: On the Schedule C-EZ that I have there is only one line to list the total expenses. That is line 2. See the form at:

http://ftp.fedworld.gov/pub/irs-pdf/f1040sce.pdf

So you can call it advertising, or whatever and it really doesn't matter. It gets lumped in to one total. Personally, I consider it advertising, but if you qualify to use C-EZ, you don't have to be all that technical.


 
 cedar777
 
posted on September 28, 2001 12:44:31 PM new
2 Reasons to File Now:

First of all, they are due now as I had an authorized extension but am now overdue on it.

Secondly, estimated taxes are required by the IRS for most self-employed folks like you and me who sell on eBay. I didn't qualify to have to pay them for last years taxes but I might need to for next year's filing! Avoid all the penalties by doing it now!

 
 cedar777
 
posted on September 28, 2001 12:51:37 PM new
Thank You Miss Candle for clarifying this!! I was looking at Schedule C on my turbotax software. For some reason, the software thinks I'm filing Schedule C when I believe I qualify to use Schedule C-EZ to avoid all the extra technicalities. Somewhere I must have goofed......will have to dig deeper.

Still open to more suggestions on deductions! I am still not close to the $2500 authorized. Thanks!


 
 katiyana
 
posted on September 28, 2001 01:03:16 PM new
If you are filing a Schedule C-EZ for last fiscal year, there are only 3 lines - one for income, one for expenses, and one for the net.

For filing quarterly income taxes you would file with 1040-ES (I think its ES - my files are at home) - I did this for 2001 for the first time. You file quarterly and include a 2210 (I think that's the right #) with your annual return at the end of the year.

 
 rgrem
 
posted on September 28, 2001 01:37:02 PM new
c-ez is not for you. If you are deducting business expenses, then apparently you are claiming income, and the cost of your goods. This must be on a Sched. C. It is not difficult, and will let you claim other expenses such as mileage, computer suppies, etc. As I've been telling others: get a schedule C and the "small business tax guide", and ALL of your questions will be answered. If time is pressing, visit a tax preparer. I've not done that, but everyone who does (at least that I've talked to) has been glad they did. jmho

 
 
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