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If a small business taxpayer treats inventory as materials and supplies, then the "inventory" is expensed (deducted) in the tax year in which it is sold; the year it was purchased is not relevant.
Also, a small business taxpayer is one who (a) has average annual gross receipts of $26 million or less for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)).
See https://www.irs.gov/instructions/i1040sc#en_US_2021_publink1000308085
Cost of Goods Sold is ultimately an expense also. It is just an accounting mechanism used to allocate costs to leftover ending inventory which does not get deducted until the next year. If your gross receipts are less than 1 million, there is no requirement to maintain an accounting of your inventory. Not to be confusing, but UNLESS you are keeping an inventory, it does not make any difference whether eBay shipping and commission costs are claimed through cost of goods sold or as an expense line item.
Rule of Thumb:
Inbound shipping costs are cost of goods sold. Out-bound shipping and selling costs are expense line items.
Actually, this is NOT correct: you said
"If your gross receipts are less than 1 million, there is no requirement to maintain an accounting of your inventory"
That is just the first test.
The second requirement is that you MUST sell 100% of that inventory in the same year you bought and expensed it.
If a small business taxpayer treats inventory as materials and supplies, then the "inventory" is expensed (deducted) in the tax year in which it is sold; the year it was purchased is not relevant.
Also, a small business taxpayer is one who (a) has average annual gross receipts of $26 million or less for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)).
See https://www.irs.gov/instructions/i1040sc#en_US_2021_publink1000308085
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