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New Member
posted Jun 1, 2019 9:53:06 AM

As an ebay / online marketplace sole proprietor, can I charge a handling fee expense on my taxes to compensate for packaging and time required to take to the shipper?

As a sole proprietor who exclusively sells online, how do I deduct on my taxes for the time required for listing products for sale, preparing products for shipping, hand delivering packages to the shipper, since I do not have a salary?  

Can I charge an internal handling fee for each item sold?

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1 Best answer
Intuit Alumni
Jun 1, 2019 9:53:08 AM

No, you cannot include a business expense to compensate for the time it takes to run your business.  Your 'salary' is the leftover profit from the business.

You can deduct the cost of shipping supplies and packaging materials, along with the miles that you drove taking the packages to the shipper (as long as you kept records of the miles driven).

3 Replies
Intuit Alumni
Jun 1, 2019 9:53:08 AM

No, you cannot include a business expense to compensate for the time it takes to run your business.  Your 'salary' is the leftover profit from the business.

You can deduct the cost of shipping supplies and packaging materials, along with the miles that you drove taking the packages to the shipper (as long as you kept records of the miles driven).

New Member
Jun 1, 2019 9:53:08 AM

Thank you!

Intuit Alumni
Jun 1, 2019 9:53:09 AM

You're welcome!