Reseller tax deductions: the business expenses eBay sellers keep records for.

Publication 334 describes an ordinary expense as one that is common and accepted in your field of business, and a necessary expense as one that is helpful and appropriate for your business.¹ Part II of Schedule C lists expense categories by line number, and the instructions describe each line.²

Whether a particular cost fits a category depends on the facts, and a qualified tax professional can advise. The sections below name the IRS categories that resellers commonly keep records for. They do not say what any one reader may include on a return.

Publication 583 describes inventory as any item you buy and resell to customers, and says supporting documents should show the amount paid and that it was for inventory.³ Publication 334 explains that cost of goods sold is worked out in a separate calculation and subtracted from gross receipts on Schedule C.¹

For a reseller, the record that matters most is the cost of each item bought to resell, with the receipt behind it. See the cost of goods sold guide for how the IRS describes the calculation, and how to split a receipt across items when one purchase covers many.

The Schedule C instructions have a line for commissions and fees and tell filers to enter the total for the tax year. The text does not name eBay or other marketplaces, so how a given charge is categorized is a question for a tax professional.²

For supplies, the instructions say costs apply only to the extent the supplies were actually consumed and used. Publication 334 likewise describes materials and supplies as accounted for when you use them.²¹ A stock of boxes and mailers bought in bulk is therefore a record of what was bought and when, plus a note of what has been used.

Useful records for these costs are the eBay fee statements, the shipping label purchases, and a receipt for each supply purchase, each with its date. The Schedule C overview shows where these lines sit on the form.

The IRS standard mileage rate for 2026 was 72.5 cents per mile before July 1 and 76 cents per mile from July 1, according to the IRS standard mileage rates page.⁵ The December 2025 announcement covered only the first of those rates.⁴ Each trip uses the rate for its date.

Publication 463 describes the records that support business driving: for each trip, the date, the miles, the business destination, and the business purpose, kept for as long as they matter for the return.⁶ The Schedule C instructions place car and truck expenses on line 9, using actual expenses or the standard mileage rate.² See the mileage guide. The sourcing mileage calculator multiplies miles by the IRS rate as an estimate.

Publication 587 says the area must be used regularly and exclusively for the business, meaning a specific area of the home used only for the trade or business.⁷ It also describes a simplified option of 5 dollars per square foot, limited to 300 square feet, which is chosen each year.⁷

Whether a space that also stores inventory meets those tests depends on the facts, and a qualified tax professional can advise. Measurements of the space and photos kept with the date are the kind of records people keep. The Schedule C overview covers where business use of the home appears on the form.

Publication 583 says records should clearly show income and expenses, and that business records must be available for inspection by the IRS. It says to keep records until the period of limitations runs out, and its table lists 3 years for most cases, 6 years where gross income was understated by more than 25 percent, and no limit where there is fraud or no return was filed.³ Topic no. 510 says to substantiate expenses by adequate records or sufficient evidence.⁸

Matching gross sales to your own records is covered in the 1099-K guide.

What is the difference between a business expense and cost of goods sold?

A business expense is described by the IRS as ordinary and necessary. Cost of goods sold is the cost of the merchandise sold, worked out separately and subtracted from gross receipts on Schedule C.¹

What do mileage records need to show?

For each trip, the IRS describes the date, miles, business destination, and business purpose.⁶

Where do platform fees go on Schedule C?

The instructions have a commissions and fees line. Strooply does not classify fees for tax purposes, so confirm placement with your preparer.²

Does the IRS say what changed for 2026?

The 2025 Schedule C instructions list 2025 changes and do not list 2026 changes. The 2026 mileage rate did change on July 1.²⁵

In Strooply, receipts can be photographed and linked to the items they paid for, the profit view shows item cost beside sales and eBay charges for a period, and sourcing trips group stops, receipts, and miles in one record. Keep receipts and mileage with dates, so you can share them with your accountant. Strooply does not decide which costs belong in which category.

Strooply is record-keeping software. It does not prepare or file tax returns, refund claims, or other filings, it is not a tax preparer, and its figures are estimates to check against your own records.