eBay and Home Business Tax Deductions

(Disclaimer - I am not an accountant, financial adviser, nor do I have expertise in advising on tax issues. This is just general information to point you in the right direction.)

I see this question a lot, "What kinds of expenses can I deduct on my taxes if I have a home eBay business?" According to my accountant, here is the answer:

Rule of thumb – if it is related to your business, keep track of it. You can probably write it off. Start gathering and tracking this information NOW before the holiday selling season starts. You are going to be busy with holiday selling, your own family holiday, and everything that happens in the 4th quarter. Don't wait until January to start scrambling. Here is a list of the types of expenses you should track.

Fees
Business license fee
Cell phone, internet usage
eBay fees (can be pulled from eBay sales reports)
Membership fees (auction templates, eBay groups, Stamps.com, Terapeak, Skype, etc.)
Paypal fees (can be pulled from eBay sales reports)
Professional fees (accountant, attorney, consultant, web design, etc.)

Office Supplies
Copies
Digital camera batteries
Labels
Paper
Printer ink
Postage
Shipping supplies (bubble wrap, boxes, tape)

Equipment
Book Scanner / cell phone app for pricing
Computer
Digital Camera
Furniture (storage shelving or tubs, desk chair, etc.)
Headset
Postage scale
Printer

Computer Related
Computer repair
Hardware (mouse, flash drives)
Software

Educational
eBay classes
eBooks, books, audiobooks, instructional mp3 downloads, online courses
Webinars

Use of Home Office
The IRS allows you to write off a percentage of expenses for your home based on the sq footage your office space occupies. If you have a 2,000 sq foot home, and your office space takes up 200sq ft, you can write off 10% of your utilities, home repair, mortgage, etc. Keep track of:

Home repairs
Utility bills

If you do not have an accountant and are doing this yourself, check these helpful resources:



You may also want to consider operating as a DBA (Doing Business As) entity.Check Legal Zoom for the advantages of becoming a DBA.

Vintage Cabinet Hardware - Knobs, Drawer Pulls, Hinges

Vintage hardware adds nostalgia, character, personality, and a touch of history to cabinetry and furniture. Homeowners are going retro and buying vintage cabinet knobs, drawer pulls, hinges, and door knobs to add style and flair to their homes. Another use for vintage hardware is jewelry. Here is an example of a necklace made from an orate drawer pull.
Creative eBay sellers are offering all types of cabinet hardware. This niche is another example of re-purposing items. One Bay, you can find the hardware made from brass, porcelain, glass, chrome, crystal, and copper. Sellers may find a piece of furniture beyond repair and dismantle it to remove the hardware. A good example would be a chest of drawers or a keepsake trunk with hinges and handles.





You can find vintage hardware at estate sales where furniture is being sold. Another source is through remodeling contractors. If you have a personal connection with someone in the remodeling business, find out what they do with the old cabinetry and doors in the homes they are remodeling. The wood may be rotten and unusable, but the hardware may be sell-able. You may be able to get pieces for free, remove the hardware you want, and discard the rest.


Look for interesting pieces. Some good sellers include:

Brass Lion head drawer pulls
Brass Cherub drawer pulls
Jadeite knobs
Crystal glass knobs
Patina
Medieval style
1920s Art Deco style
1950’s chrome

Some sets of brass hardware can sell up around the $100 mark. More than likely, you will need to do some heavy duty cleaning to bring back the original shine and luster of these pieces. They can be really beautiful when restored and can help you make some money on eBay.

For more information on selling niche products on eBay, click here.