Where do you deduct Ebay fees on a 1065? And, the same question for PayPal and Intuit merchant center fees...we are an LLC taxed as a partnership.

[danielle-51]

It doesn't seem like these things would all go in the same place. The Ebay fees seem like a part of Cost of Goods Sold, and the merchant fees seem like they would be an expense. Is this correct?

[PatriciaV · Accepted solution]

It depends. If the fees you paid relate to the components of a product you create and sell, then Cost of Goods Sold may apply. But in general, merchant fees are a cost of doing business. In other words, miscellaneous business expenses. Where you enter a general business expense doesn't affect your net income as long as you don't enter the same expense twice.