Tax season is when most resellers realize they've been flying blind. Here's what you need to know about filing taxes as a reseller — and how to avoid the April scramble.
Do You Need to File?
If you sold goods on any platform (eBay, Whatnot, Depop, Mercari, etc.) and you're not a hobby, you need to file. The IRS considers reselling a business. Platforms issue 1099-K forms if you hit certain thresholds ($5,000+ in gross sales for 2026, phasing down from $20,000 in prior years).
The Schedule C
Most resellers file a Schedule C (Profit or Loss from Business) with their personal tax return. Key sections:
- Part I — Income: Your gross sales from all platforms. Add up every sale before fees.
- Part II — Expenses: Cost of Goods Sold (COGS), platform fees, shipping, supplies, mileage, home office, insurance.
- Inventory method: You need to choose cash or accrual accounting and be consistent.
What You Need to Track Year-Round
- Cost of Goods: What you paid for every item you sold. Without this, your profit looks much bigger than it actually is.
- Platform fees: eBay final value fees, Whatnot commissions, payment processing — all deductible.
- Shipping: Labels, boxes, packing tape, poly mailers. Every shipment cost.
- Mileage: Trips to the post office, sourcing trips, estate sales. Track them.
Common Mistakes
- Reporting revenue instead of profit: Your tax is based on net profit, not gross sales. Subtract your COGS and fees.
- Mixing personal and business expenses: Keep a separate bank account or card for reselling.
- Ignoring inventory accounting: The IRS requires you to account for inventory. Cash vs accrual matters.
How SellDeck Helps
SellDeck generates IRS Schedule C reports with automated line mapping — your revenue flows to Part I, your COGS and expenses flow to Part II, and your inventory method (cash or accrual) is calculated automatically. State-level tax breakdowns show exactly what you collected and owe per state.
No manual spreadsheet math. No digging through PayPal statements in April. Just a report your accountant can use as-is.
Tax-ready reports in one click
Schedule C, P&L, and state-level tax breakdowns — included on the Business plan.
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