Deductions for side businesses done on eBay, Poshmark, and Facebook

[Srpieper23]

Hello, I started a side business of reselling good over Ebay, Poshmark and Facebook. Each one I have over $600 in sales so I know I will get a 1099-K.  I am wondering what can I deduct to offset the sales in addition to the cost of goods sold? For example, can I deduct the part of the house we use to store inventory, take pictures and prepare products for shipping? Can I deduct the miles/gas that it takes me to go to the post office and UPS to mail packages?  Thank you! 

[jkellett2]

Yes, you can deduct expenses!

For the mileage, you need to keep a mileage log, showing trip mileage, date, time and purpose.  Be sure you keep track of your total mileage for the year.  You will need it when you prepare your return.  Also, there are apps you can use to assist in tracking the mileage.   Some business owners find  this as a more convenient way to calculate the mileage.

You can also expense the packaging materials, boxes and postage for shipping the products.

If you have an area in your home that you use exclusively and regularly for storing inventory and preparing the packages for shipping, you might be eligible to deduct expenses for Business Use of Home.  This must be your principal place of business.....which from your description, it is.    Business Use of Home/Home Office expenses are deductible as an expense for self-employment.