Reseller Tax Guide

Quick rules to keep you compliant and avoid surprises when tax season hits. Use this as a checklist before you start buying and selling at volume.

Use this before tax season

This is not legal or tax advice. It's a simplified checklist to help you prep your records and conversations with a tax professional.

1099-K rules

Marketplaces and payment processors issue 1099-K when your sales cross the platform's reporting threshold.
Thresholds vary by year and state; many platforms trigger at $600 gross receipts.
Keep your payout account info updated so forms arrive on time.

Receipts to keep

Purchase proof: retail receipts, invoices, screenshots of order confirmation.
Sale proof: marketplace order details, payout statements, consignment settlements.
Shipping: labels, tracking, insurance, and return receipts.
Authentication/restoration: cleaning, legit checks, repairs with invoices.

What counts as expenses

Cost of goods sold (COGS): what you paid for inventory plus marketplace fees tied to the sale.
Shipping and packing: mailers, boxes, tape, insurance, signature confirmation.
Payment processing and platform fees, consignment commissions.
Business tools: bookkeeping apps, price data tools, photo gear used for listings.

Avoid tax-season surprises

Separate business and personal accounts to simplify tracking.
Log purchases and sales monthly; export marketplace CSVs and keep them backed up.
Estimate quarterly taxes if profits are meaningful to avoid penalties.
Talk to a tax professional early if you're scaling inventory or hiring help.