Despite the fact that we’ve loosened our ties a little bit in moving through tax season, we’re trying to encourage all of our small business friends to stay on top of their potential write-off expenditures throughout the rest of the year. The Small Business Corner is geared towards helping different businesses get a clearer idea of what sort of write-offs might be available for them when it comes to filing taxes. We get that it can be difficult to try to run the whole gamut of tax season, and that’s where we come in. This week, we’re discussing Etsy Businesses – if you have any questions for us at the end of this article, we encourage you to reach out to us!
Ah – the bright world of Etsy. Some people scoff at Etsy businesses, and dismiss them as a hobby – not us. We recognize one very important thing about Etsy: It’s taking advantage of a market that is still very young, AND very profitable. E-commerce isn’t the newest thing in the world…but websites like Etsy, and Fiverr are still pretty fresh – that means that right now, it’s a better time than ever to enter these specialized community markets and command a well-known presence within them.
If you’re selling on Etsy, you’re probably pretty good with your hands…or, at the very least, you’re pretty good at putting stuff together with your hands. That’s where your first tax deduction comes in – the cost of the goods that you’re making, we’re talking raw materials here, is an easy write-off. Think in terms of all of the items you’ve sold. Do you make handmade jewelry? The beads, the actual string for your necklace – whatever it is, you can write off those little individual costs. Believe us, they add up!
Another huge one is your Home Office! It’s no secret that most Etsy Businesses are operating out the business-owner’s home. But did you know that if there is a portion of your home that is exclusively dedicated to your business, you can write-off the costs associated with that. Do you need a specialized computer for the transactional part of your business? Is there any type of special equipment required for making your handmade goods?
More specific to Etsy, you pay fees whenever you make a sale…both to Etsy and to PayPal. These fees add up, and are absolutely tax deductible. Either way, it’d be a really good idea to take a look at the way in which these fees are impacting the money that you’re making and adjust your listing prices accordingly – oh, and don’t forget that you pay a small fee for the Etsy listing. Yep, you guessed it…it’s also a write-off! Add ‘em up!
We realize that this might be a lot for you to take in, but please don’t worry! We are more than happy to have a free consultation with you. If you have any questions about this article, or about the services that we can offer to your Etsy Business, please don’t hesitate to fill out the form to the right of this article. You can also call us at 844-841-9857.