Thanks! are you saying regardless if the buyer is charged for shipping or I pay the cost of shipping it's always included in the 'cost of sale,' therefore the IRS will know to separate those shipping costs from left over net income after deductions, that way I don't get taxed 25% on income I don't profit from? So in other words: free vs buyer paid shipping is really the same thing. It all goes to 'cost of sale' section, so I'm assuming it's function is to calculate my ending taxable net income, separated from what I never profited from (un-adjusted gross sales reported by Mercari?)
