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Marginory

eBay Tax Deductions Checklist (2026)

A checklist of common expense categories eBay sellers track for tax purposes — cost of goods sold, platform fees, shipping, home office, software, and more.

By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & PODUpdated Fee data verified against official platform documentation

Not tax advice. This checklist is general information to help you organize records, not personalized tax guidance. Marginory is not an accounting or tax preparation firm. Whether a specific item is deductible for your situation depends on facts a licensed CPA or tax professional needs to review — consult one before filing.

eBay sellers running a for-profit reselling operation can generally deduct ordinary and necessary business expenses against their eBay income. The categories below cover the expense types eBay sellers most commonly track — use it as a starting checklist for gathering receipts and records, not as a determination of what you personally can claim.

Cost of goods sold

  • What you paid for inventory you resell (thrifted, wholesale, liquidation, garage sale finds)
  • Cleaning, repair, or refurbishment costs before listing an item
  • Sourcing trip costs directly tied to acquiring inventory

eBay & marketplace fees

  • Final Value Fees (13.6% most categories, varies by category)
  • Per-order fees ($0.30 or $0.40 depending on order size)
  • Insertion fees, once you exceed your free monthly listing allowance
  • eBay Store subscription (Starter, Basic, Premium, Anchor)
  • Promoted Listings ad spend

Shipping & fulfillment

  • Postage and shipping labels
  • Shipping software or label-printing subscriptions
  • Boxes, bubble mailers, tape, packing materials
  • Shipping insurance
  • Scale and label printer equipment

Home office & storage

  • A percentage of rent/mortgage, utilities, and insurance for a dedicated business-use space
  • Storage unit costs, if used to house inventory
  • Shelving, bins, and organizational equipment for inventory

Software & tools

  • Cross-listing or inventory management software
  • Accounting/bookkeeping software (e.g. QuickBooks)
  • Research tools for pricing/comps
  • Photo editing or listing template tools

Vehicle & mileage

  • Mileage for sourcing trips (thrift stores, estate sales, auctions)
  • Mileage for post office or shipping drop-off runs
  • See the dedicated mileage deduction guide for how to calculate this correctly

Professional services

  • Accountant or bookkeeper fees
  • Tax preparation software or professional tax prep fees
  • Business insurance premiums
  • Legal fees related to the business (e.g. LLC formation, reseller's permit)

Why cost of goods sold tracking matters most for eBay resellers

Unlike a maker who buys raw materials with clear receipts, resellers often source inventory from thrift stores, estate sales, or liquidation lots where recordkeeping is easy to let slip. Logging what you paid — even roughly, consistently, and dated — as you buy is far easier than trying to reconstruct a year of purchases at tax time, and it directly affects your cost basis calculations.

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1099-K Threshold by State →Reseller Mileage Deduction →Etsy Tax Deductions Checklist →

Related Tools

Etsy Tax Deductions Checklist1099-K Threshold by StateReseller Mileage DeductioneBay Fee Calculator

Frequently Asked Questions

Is this list tax advice?
No. This is a general checklist of expense categories that eBay sellers commonly track for tax purposes, meant to help you organize your records — it is not tax, legal, or accounting advice, and Marginory is not a tax preparation or accounting firm. Whether a specific expense is actually deductible for you, and how much of it, depends on your business structure, filing status, and other facts a licensed tax professional needs to evaluate. Consult a CPA or enrolled agent before filing.
Can I deduct what I paid for inventory even if I bought it secondhand with no receipt?
This is exactly the kind of question that needs a licensed tax professional's input, since it depends on your recordkeeping and how you're calculating cost of goods sold. Keeping some form of contemporaneous record (even a notebook log of estimated purchase price and date) is generally better than reconstructing it later, but talk to a CPA about how to substantiate inventory cost basis for cash or informal purchases.
Are eBay Final Value Fees and per-order fees deductible?
Platform fees charged against your sales are generally treated as an ordinary cost of doing business for a for-profit resale operation, but confirm the specifics — including whether to net them against gross sales or list them as a separate expense line — with a tax professional, since correct treatment can affect other calculations on your return.
What's the difference between a hobby and a business for tax purposes?
The IRS treats hobby income and business income differently, which affects what you can deduct. Factors like intent to profit, recordkeeping, and profit history in recent years all matter, and the analysis is fact-specific. If you're unsure whether your eBay selling counts as a hobby or a business for tax purposes, bring that question to a CPA directly.
Do I need to report eBay income even if I don't get a 1099-K?
Yes. Whether eBay issues you a Form 1099-K depends on the reporting threshold that applies to you (see the 1099-K Threshold by State guide), but your obligation to report taxable income exists regardless of whether a form was issued.