How to Minimize Your eBay Businesses Taxes

Step-by-Step Guide

1. 1

   Step 1: First of all

   These expenses could include a digital camera, a computer, shipping supplies, office space, employee wages, anything and everything related to the operations of the business.
   
   Meals, entertainment and gifts can also be reasonable considered deductions if related to your business.
2. 2

   Step 2: the single most important part of reducing your taxes is to keep very clean and accurate records of every business related expense you accrue.

   At tax time, this makes things very easy for your tax person or yourself if you do your own taxes.
   
   This will also help you to get every tax advantage you deserve because of your accurate records. , This will let you write checks and makes purchases directly through your business funds.
   
   Try to maximize the use of business funds by buying as many legitimate items as you can through your business.
   
   You might want to consider attending an eBay seminar or purchasing a home study course.
   
   You’ll not only be able to deduct every penny of the cost, but you’ll gain valuable insight into running a successful eBay business.
   
   If you discuss business matters while having a meal somewhere, be sure to pay with your eBay business account. , This is great insurance if you ever get audited.
   
   Having all receipts in an orderly fashion filed by tax year will make an audit much less intimidating and save you hours of work.
   
   Not to mention the peace of mind that comes from knowing exactly where everything is, should you need it. , It doesn’t make sense to keep great records all year only to hand them over to a mediocre “professional”.
   
   You should take the time to find yourself someone truly great.
   
   This will pay rich dividends by saving you not only money, but time and hassle.
   
   Your tax man or women should be quick, accurate, and get you every advantage you’re entitled to.
3. 3

   Step 3: You should enter all expenses into QuickBooks

4. 4

   Step 4: or some other accounting software

5. 5

   Step 5: as soon as you possibly can.

6. 6

   Step 6: Be sure to set up a bank account that is separate for your eBay business.

7. 7

   Step 7: Always keep receipts well organized and filed away.

8. 8

   Step 8: The last point you need to remember is to use a good tax accountant.

Detailed Guide

About the Author