If I am an eBay seller can I list my computer and internet service as expenses?

Question

What else can I list as expenses?

Answer 1

Yes, you can list a PORTION of your computer and ISP as a legitimate business expense, but I'd advise against listing all of it unless you use it EXCLUSIVELY for business, which if audited would be really hard to prove.

Technically, you could claim a home office expense as well, if you meet certain criteria for it (see link below). Other then that, you've got any expenses incurred from your "business" including office supplies (toner, paper, etc if you print things out), accounting software, inventory etc. Really, anything you purchase for exclusive use by your business can be deducted.

But remember, in order to claim any expenses, you have to report income. Income can trigger self-employment taxes, which are no fun. And if you don't start showing a profit in 3 of 5 years, it then becomes a hobby and you can't take any type of losses (though you can take expenses to offset any income).

Answer 2

first you have to register your business and pay tax on earnings, then you can claim a percentage of household utilities and mortgage based on the space used in your house, also cost of computer, mailing expenses, advertising expenses, any GST paid out. As soon as your business is registered you will be asked to remit forms declaring income and taxes payable to government with payment attacked. good luck.

Answer 3

You would probably have to break down how much is used for business and how much is used otherwise. It really depends. If it's combined use maybe not. You'll have to speak to a tax preparer or look it up on the IRS web site.

Answer 4

If you report income made from sales, then yes, you have a legitimate expense.

You should also be able to deduct any and all postage, mailing supplies, packing material, etc.

Answer 5

You might but you need to talk to an accountant

Answer 6

I think so as long as it is dedicated to your business.