I own a small online retail business. Are the shipping charges that I have to pay to ship merchandise to the customers that buy my items online an expense or Cost of Goods sold since they are charged for the shipping? Please only answer if you know about this stuff.
2007-04-26 15:13:48 · 2 answers · asked by Nicolleta 2 in Business & Finance ➔ Taxes ➔ United States
It's an expense.
The effect on your bottom line is pretty much the same but the real impact is where some states levy personal property taxes on inventory. If it were CGS, it would reduce the value of the inventory and therefore the tax. There's an argument to be made for inbound freight, but not for outbound.
2007-04-26 15:46:06 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It is an expense,shipping expense,or cost of goods sold;same thing.
2007-04-26 15:19:13 · answer #2 · answered by DAGIM 4 · 0⤊ 2⤋