Reseller Tax Deductions: What Flippers Can Write Off
If you resell for profit, the good news is that a lot of your costs are deductible — which can meaningfully lower your tax bill. This is a general overview (not tax advice; check with a pro for your situation), but here are the deductions resellers most often miss.
Common reseller deductions
- Cost of goods sold — what you paid for the inventory you sold.
- Platform & payment fees — Poshmark, eBay, Mercari, PayPal fees add up fast.
- Shipping & supplies — postage, boxes, poly mailers, tape, tissue, labels.
- Mileage — miles driven sourcing inventory or to the post office.
- Home office & storage — a portion, if you use space regularly for the business.
The secret is record-keeping
Every one of these deductions depends on having the numbers. Come tax time, a shoebox of receipts is a nightmare; a running log of each sale and expense is a five-minute export. Track as you go and April becomes easy.
Want it done for you? The Reseller Profit Tracker at Planful Nest auto-calculates everything — type in the white cells and the colored cells do the math. Prefer to start free? Grab the free printable budget planner first.
Related reading: How to Price Items for Resale and Small Business Bookkeeping for Beginners.
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