Here it is tax time again.  Just finished my corporate tax return, and have some ideas that may save beginning sellers some money next year.

1)  Keep good records.  If I could give ony one tip - it would be save all of your receipts, and keep all of your sales records.  I just use a 3" binder, with sections separated by month, and file all of my info there after it is recorded in Quick Books.  This way I know where everything is.

2)  Stop by OfficeMax or Staples, and buy a mileage log.  Cost:  $2.50.  Write down every mile you drive - to the bank, to the post office, out sourcing items.  Odds are you will have at least 2000 or 3000 miles if not more by year end.  At 46.5 cents per mile - that is a nice deduction.

3)  Set aside a space in you home just for ebay.  Save all of your home receipts - phone, taxes, mortgage payment, whatever.  Divide your ebay space by the total size of your house, and that is the percent of expenses you can deduct.

4)  If you are buying at yard sales or auctions, try to get a receipt, or at the very least write down the day, address, and amount - so you have a record of the purchase.

5)  Deduct the portion of your internet costs that you use for your business.

6)  Read Tax Savvy for Small Business, and Ebay Tax Loopholes.  They will pay for themselves over and over again.

My last piece of advice is to run your ebay business like a business.  Too often planning and taxes comes last.  But, if you are ready for it - taxes can be a breeze.

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