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