eBay Sales Tax Question Schedule C?
This will be my first year filing a Schedule C for an eBay business and was wondering if a high revenue/low profit margin situation is a red flag. For example, my cost of goods was roughly $443,000 and my sales were $404,000 with approx $76,000 remaining in inventory. My gross income is approx $37,000 and after deductions, I am down to $25,000. I know its not an exact science, but would the fact that my net income comes to approximately 6% of my total sales make me a prime audit candidate?
Thanks
the things that attract an audit are unusually high specific expenses in relation to the rest of your expenses and in comparison with industry standards
Categories: ebay sales down Ebay, Ebay Business, Ebay Sales, Exact Science, Gross Income, Net Income, Profit Margin, Red Flag, Sales Tax, Schedule C, Tax Question
the things that attract an audit are unusually high specific expenses in relation to the rest of your expenses and in comparison with industry standards
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