...and just when I think I have a handle on things, I read another post that confuses me. :(
I'm going to ask a favor. Can you possibly dumb this concept down so I don't get thrown into prison in 2026? Thanks in advance!! Here's my situation:
In 2025, I'm selling trinkets on several online platforms, and I'm keeping a record of what I sell, the selling price, the fees, the taxes, shipping costs and the original price that I paid for each trinket. Many of these items are things that I've purchased in 2024, knowing I'd be reselling in 2025, hopefully for a profit. I'm also currently purchasing more trinkets in 2025, to continue reselling.
I assumed that on my 2026 taxes, I would type in a number based on my 1099-k forms (gross money that was paid to me), and I would simply subtract the original price I paid for that item, the fees, the shipping costs, etc--giving me a bottom line number of how much profit I actually made, and that's what I would pay taxes on.
Then I start reading and I'm seeing COGS and BOYE and EOYE and just when I think I've got my head around it, I see cash vs. accrual and I JUST DON'T GET IT.
I need someone to talk to me like I'm in first grade so I know I'm doing the right thing. Thanks again!
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