On your business income portion -- schedule-C whcih gets included in your individual return --- you determine your COGS ( Cost of Goods Sold ) as cost of inventory forwarded from the year before PLUS all inventories bought during the year LESS cost of residnual inventory at the end of the year. This is your basis ( kind of ). Your gross sales is total sales less any taxes collected. Schedule-C will also require you to include any other expenses you may have had -- taxes, licenses, postage, etc. etc. for the income. All of these items eventually result in your net profit before taxes. TurboTax will walk you through all of this -- including the schedule-SE ( self-employment ) -- 15.3 % on most of the gain / income you have had from this effort.
Hope this helps
