Tax prep checklist
Flipwise helps you prepare your taxes by allowing you to log and track your reselling data, but it is not tax software. Flipwise does not offer tax advice and this article should not be considered tax advice. We strongly recommend that you consult with a professional tax advisor when preparing your tax return.
Getting ready for tax season can feel overwhelming, especially when you're managing a reselling business. With so many details to track—expenses, sales, inventory—it’s easy to overlook something important. But preparation doesn’t have to be stressful, and the Flipwise tax report makes it easy.
This checklist will guide you through the essential steps to gather and organize your information, ensuring you're ready to file your taxes accurately and confidently.
- Verify All Income Sources: Ensure you’ve recorded income from all marketplaces and platforms, not just eBay (e.g., Poshmark, Mercari, Facebook Marketplace). You can quickly log sales for non-eBay marketplaces directly in Flipwise so they are accounted for in your tax report.
- Make sure you have entered all of your missing data into Flipwise. The tax report makes it easy by telling you exactly which data is missing. Click each of the missing data alerts to see the items in your inventory missing data and input that data directly from this screen. The tax report will update in real-time as you enter in new data. Entering all relevant data will help make your tax report as accurate as possible.
- Log additional business expenses for the year. While Flipwise will automatically ingest all of your expenses related to selling on eBay, you can reduce your taxable income even further by logging other tax deductible business expenses like office supplies, subscription services, and shipping supplies. Flipwise makes this easy to do using the Ledger. Each deduction you log in the Ledger will be reflected on the tax report. Marking expenses as non-cash will ensure they appear on the tax report while not impacting your income statement.
- Review Business Mileage: Log all business-related mileage for sourcing trips, shipping runs, and business supply pickups in the Flipwise Ledger. Mileage logged in the ledger will be automatically marked as non-cash so they do not impact your income but will show up on your tax report.
- Go through your returns for the year: If any items with a return were not actually returned to you (meaning you refunded the money and let the buyer keep the item) mark those as “not returned” so that the cost of goods sold are considered for the year.
- Go through your list of Ended listings in Flipwise: Any items that were donated or discarded can be marked as such so that their cost of goods are reflected in your tax report. You may also choose to delete certain ended items entirely if they are not relevant to the tax year.
- Consult a Tax Professional: If you’re unsure about any deductions or calculations, seek advice from a CPA experienced with reselling businesses.