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Level 1
posted Jan 24, 2022 6:53:08 PM

Cost of Goods Sold

I am a drop shipper so I do not have a beginning or ending inventory. 

When I get my 1099k at the end of the year, the figures include the following:

  1. Taxes paid by Etsy
  2. Returns/Cancelations
  3. Etsy selling cost
  4. Cost of the item
  5. And profit

How do I get the cost of goods sold?

Thanks you!

0 2 5651
1 Best answer
Expert Alumni
Jan 24, 2022 7:08:18 PM

As a drop shipper, you don't really have any inventory. You have two options for reporting the cost of your items.

 

In TurboTax, you can report these costs in the inventory section as cost of goods sold and $0 for beginning and ending inventory, or in the expenses section as supplies.

 

Either way, you don't have to report inventory but you do need to carefully track what you paid for the products, materials, and supplies that go into the items you sell.

 

Click here for more information.

2 Replies
Expert Alumni
Jan 24, 2022 7:08:18 PM

As a drop shipper, you don't really have any inventory. You have two options for reporting the cost of your items.

 

In TurboTax, you can report these costs in the inventory section as cost of goods sold and $0 for beginning and ending inventory, or in the expenses section as supplies.

 

Either way, you don't have to report inventory but you do need to carefully track what you paid for the products, materials, and supplies that go into the items you sell.

 

Click here for more information.

Level 1
Jan 27, 2022 12:24:11 PM

Thank you very much!