topic As a reseller, where do I enter in merchandise I returned to the original store on my taxes? in Business & farm

As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

MadelynG — Mon, 08 Mar 2021 17:55:35 GMT

For example, if I bought 10 pairs of shoes on one invoice from Nike to resell, sold 7 and returned 3 to Nike, where would I enter in the cost of the 3 returned pairs?

Re: As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

MinhT1 — Mon, 08 Mar 2021 18:13:44 GMT

You will subtract the cost of your returned purchases from the amount of Purchases on your tax return.

Re: As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

MadelynG — Mon, 08 Mar 2021 18:57:23 GMT

Thank you, so it doesn't go in it's own separate box, like the cost of goods withdrawn for personal use?

For example, if I bought 10 pairs of shoes that cost $100 each, and I sold 7 pairs, kept 1 pair for myself, and returned 2 pairs, I would put $700 for the cost of goods and $100 for the cost of goods withdrawn for personal use? The value of the 2 returned pairs wouldn't be accounted for in a separate box?

Re: As a reseller, where do I enter in merchandise I returned to the original store on my taxes?

ColeenD3 — Mon, 08 Mar 2021 19:09:25 GMT

No, as MihnT1 said, you would subtract the pairs you returned from purchases. You would account for the pair that you took for yourself as withdrawn for personal use.