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MadelynG
Level 3

As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

For example, if I bought 10 pairs of shoes on one invoice from Nike to resell, sold 7 and returned 3 to Nike, where would I enter in the cost of the 3 returned pairs?
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MinhT1
Expert Alumni

As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

You will subtract the cost of your returned purchases from the amount of Purchases on your tax return.

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3 Replies
MinhT1
Expert Alumni

As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

You will subtract the cost of your returned purchases from the amount of Purchases on your tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

MadelynG
Level 3

As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

Thank you, so it doesn't go in it's own separate box, like the cost of goods withdrawn for personal use?

 

For example, if I bought 10 pairs of shoes that cost $100 each, and I sold 7 pairs, kept 1 pair for myself, and returned 2 pairs, I would put $700 for the cost of goods and $100 for the cost of goods withdrawn for personal use? The value of the 2 returned pairs wouldn't be accounted for in a separate box?

ColeenD3
Expert Alumni

As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

No, as MihnT1 said, you would subtract the pairs you returned from purchases. You would account for the pair that you took for yourself as withdrawn for personal use.

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