Bookkeeping guide
Online reseller tax bookkeeping: categories to review
eBay, Poshmark, Mercari, Amazon resale. If you got a 1099 for this work, here are common categories and review questions; your facts and records determine what qualifies.
Worth knowing
These are common expenses people in this line of work may need to review. Anything marked in orange is an edge case worth raising with a preparer rather than assuming.
Inventory is cost of goods sold
Items you buy to resell are generally inventory purchases in Part III (cost of goods sold), not Line 22 supplies. Generally only the cost of items you sold during the year ends up in cost of goods sold; stock still unsold at year end is ending inventory, and small business exceptions can change how this is figured. Keep sourcing receipts or a log of what each item cost, including cash buys. PrivateBooks calculates Line 4 only when you confirm there was no beginning or ending inventory, no personal withdrawals, and no other Part III costs. If you hold unsold stock, have your preparer complete Part III.
year-end count Part III
Marketplace fees — the big one
eBay, Poshmark, Mercari, Amazon, and similar platforms may subtract selling fees before a payout reaches you. Record the sale amount as income and the actual fee shown on the platform's sales report or statement as a separate expense, instead of estimating a typical percentage. The Schedule C instructions generally put fees paid to sell property on Line 10 for a business that regularly sells property; PrivateBooks maps them to commissions and fees for review. Booking only net payouts can leave your sales below what the platform reports.
actual fee from statement
Form 1099-K may not match your sales
Marketplaces and payment apps may send a Form 1099-K showing the total dollar amount of reportable payment transactions. The IRS notes this may not be the amount you should report as income: it may leave out some receipts and include amounts that aren't your receipts, such as sales tax. Whether or not a form arrives, business sales are generally reportable income. Reconcile any form to your own records and keep each platform's annual sales report.
reported total reconcile
Selling your own used items
Selling your own clothes, furniture, or other personal belongings is different from reselling items you bought to sell, and the Schedule C instructions say a sporadic activity doesn't qualify as a business. A loss on property held for personal use, such as selling it for less than you paid, is not deductible. A gain on a personal item is generally a capital gain, not Schedule C income. Keep personal sales out of your business books, keep what you paid for them, and ask your preparer how to report a 1099-K that mixes personal and business sales.
at tax time keep separate
Storage unit or inventory space at home
Rent for an off-site storage unit used for inventory may generally be a Line 20b rent expense; keep a personal unit or personal share out. Part of your home used regularly to store inventory may qualify for the business-use-of-home deduction even without exclusive use, if you sell at retail or wholesale and have no other fixed business location; Pub. 587 has the full conditions. PrivateBooks' simplified-method helper uses $5 per square foot, capped at 300 square feet. That method replaces actual home costs, so don't also book home rent or utilities for that space as Schedule C expenses.
$5 / sq ft simplified
Sourcing trips & post office runs
Driving to thrift stores, estate sales, liquidation pickups, or the post office for the business may be business mileage. Trips from home can be commuting unless, for example, your home qualifies as your principal place of business. Keep a timely date, destination, purpose, and mileage log. If you use the mileage rate, don't also deduct gas or repairs for that vehicle; business parking and tolls may be added separately.
$0.70 / mile 2025 rate
Common categories PrivateBooks suggests
Pick Online reseller during guided setup and PrivateBooks shows these categories mapped to Schedule C lines for review — no chart of accounts to invent. The mapping does not establish eligibility, business-use share, or substantiation:
| Category | Schedule C line |
|---|---|
| Inventory for resale (thrift, retail, liquidation) | Line 36 — Purchases |
| Marketplace selling fees (eBay, Poshmark, Amazon) | Line 10 — Commissions and fees |
| Shipping labels & postage | Line 27b — Other (postage & shipping) |
| Boxes, mailers & packing supplies | Line 22 — Supplies |
| Small equipment (label printer, scale, lights) | Line 22 — Supplies |
| Crosslisting tools (Vendoo, List Perfectly) | Line 27b — Other (software & subscriptions) |
| Promoted listings & ads | Line 8 — Advertising |
| Payment processing fees | Line 27b — Other (bank & merchant fees) |
| Storage unit rent | Line 20b — Rent/lease (other property) |
| Mileage for sourcing & drop-offs | Line 9 — Car and truck expenses |
| Parking & tolls on sourcing runs | Line 9 — Car and truck expenses (business parking and tolls) |
| Phone & internet (work %) | Line 27b — Other (phone & internet) |
| Seller's permit & business license | Line 23 — Taxes and licenses |
Merchants it recognises automatically
On top of the 584 built-in sorting rules, this pack adds rules for B-Stock, Cubesmart, Liquidation.Com, List Perfectly, Listperfectly, Public Storage, Shopgoodwill, Vendoo. A matching description gets a suggested bookkeeping category; anything uncertain goes to Review instead of being guessed at. Spot-check every suggestion: a merchant match is not proof of business use, eligibility, allocation, or substantiation.
Do you even have to file?
Net earnings from self-employment of $400 or more generally require Schedule SE, but other filing rules can apply below $400. Whether you received a 1099, also have W-2 wages, had withholding, or need estimated payments depends on the full return. Review the official Schedule SE instructions or ask a qualified preparer instead of treating this bookkeeping guide as a filing decision.
See an optional cash-reserve illustration →
Educational pointers, not tax advice. Tax rules change and your situation is specific — worth asking about at tax time. The free IRS-sponsored VITA program helps people under its income threshold at no cost.