Are these three items getting a second look before year-end?
For business owners and self-employed professionals. Eligibility depends on your situation.
The cost of products you sell is subtracted from sales. Track purchase cost, freight in and inventory on hand at year-end. Unsold inventory is not simply deducted when purchased unless a specific rule allows it.
Do a year-end inventory count and reconcile it to purchases and sales reports.
Platform fees, ads, shipping and fulfillment costs are generally deductible. Compare Form 1099-K totals with your own sales records, since the form can include amounts that are not income or miss refunds and fees.
Download monthly platform reports and match them to deposits and 1099-K totals.
Space in your home used regularly and exclusively for the business may qualify. Storing inventory or product samples at home has a special exception to the exclusive-use test if the home is your sole fixed location.
Measure the storage or work area and keep photos and a simple inventory log.
Business expenses must be ordinary and necessary. Keep receipts and the business purpose; separate personal use and reimbursements. Dollar limits shown are for 2026 and can change; eligibility and entity type matter. General education, not individual tax advice.
Book a free 15-minute year-end tax check with Louisa, by phone.
Book your free 15-minute tax check →Or call or text 281-656-9666.