Hello Diane....Thank you so much for your quick response, but unfortunately I still don't understand. :( How do I account for this inventory if I don't manually count it at the end of the year?
I'm keeping track of everything I'm purchasing this year to eventually sell, and I have receipts for things I've purchased last year to resell. So I sell something for $10.00 that I originally purchased for $5.00 last year, and eBay fees are $2.00 and the buyer covers shipping. So I believe that my taxable income is $3.00 for that item, right? If so, that makes sense and I've got that covered.
This BOY and EOY inventory still doesn't make sense. (Trust me--I've researched the internet for hours and have read some wonderful explanations, but just like Algebra, my brain isn't comprehending).
