In any business, you declare your gross income and then reduce the taxable amount by your expenses necessary to make that money. With your example: Gross 25,748 paypal fees -748 ebay fees - (too high!) other expenses -???? Net Profit ????? Your other expenses are ANYTHING you spend to make your Gross income! This includes postage, possibly Auto expenses (prorated), Computer costs (Depreciated), office supplies,, possibly part of your house that you use for an office (Depreciated and prorated)
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