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AlisonK
Level 1

Schedule C for small etsy seller

I filed schedule C last year for my loss of around $400. I did not report any inventory and just filed my schedule C with my expenses diverse between office supplies, line 22, and Part V of Schedule C. I

 

want to be able to file my schedule C for this year as accurately as possible. So if I do begin counting inventory for this year, how should I fill out the COG section of schedule C? 

 

If I started off this year with 5K worth of inventory items and they get sold out within a few months - if I restocked during the middle of the year, how will this affect the "beginning inventory amount"? Where should I report the additional inventory purchased during the year? 

 

In addition, Etsy remits taxes on the seller's behalf, so is there anything else that needs to be done on my end to report sales tax that had been collected/remitted by Etsy? 

 

Etsy also charges transaction fees and listing fees. Where should this be reported on Schedule C? Same thing for shipping charges- where should this go?

 

 

4 Replies
Critter-3
Level 15

Schedule C for small etsy seller

If your Sch C income is under $1 million per year  then you can keep using the supplies expense option  and  skip inventory section. 

fanfare
Level 15

Schedule C for small etsy seller

"Where should I report the additional inventory purchased during the year? "

 

You don't do that.

When an  item sells, update the cost of goods sold.

 

At the end of the year you have a year-end inventory value.

 

 

AlisonK
Level 1

Schedule C for small etsy seller

sorry if I am not being clear. Since I am starting to take inventory into account next year, my beginning inventory would be "0".  And then purchases I made would be in "line 36" right? 

 

 

Critter-3
Level 15

Schedule C for small etsy seller

Correct ... look at the form ... read the lines ...

 

1....jpg

 

 

Of course if you don't want bother with inventory anything you can simply deduct the "inventory" as supplies like you have in the past if your small business is under $1 million in sales. 

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