I guess the main thing I am confused about is how to keep the records doing it that way. Then if the other 5 sell next year I claim their costs then. I buy 10 items and only 5 sell this year so I only get to claim the cost of the 5 that sold this year. From what I have been reading today it seems like I can only claim the expenses for items that have sold, COGS. For some reason I started reading about it again today and it seems like that assumption might have been wrong. These are the things I track, all were done as a total per day so if I had 3 sales i would add them all together and they were on one line a line for sales for the 1st of Jan and so on, then each month had its own tab:Īt the time I made the spreadsheet I was under the assumption, based off what I read, that I could claim all my inventory buys as expenses. After my research I made an excel sheet and started listing like crazy and tracking all of my sales and expenses as I thought i needed to from my research. At the beginning of this year I did some research on what I would need come tax season since I planned on using ebay to make a decent side income.

Accrued accounts for cogs