Can you deduct your eBay and PayPal fees on your tax return?
February 13, 2007 · Print This Article
As a seller on eBay, you incur many expenses. Two of the most common expenses include your listing fees on eBay and your PayPal fees.
Can you deduct these fees, and where do they go on your tax return? Yes, you can deduct both your eBay listing fees and your PayPal fees.
EBay listing fees are an advertising expense, so list these on line 8 – Advertising, on Schedule C of your tax return.
Your PayPal fees are considered bank service charges and should be listed as an Other Expense on line 27 of Schedule C.
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You state that ebay fees are advertising expenses and paypal fees are other expenses. However, my CPA says they should go under the commissions and fees section. Since the fees are a commission on the sale doesn’t that make more sense?
Good question Deb. I can see how that could make sense to some people, but I still see eBay fees as advertising, not commissions, especially since you have to pay listing fees whether the item sells or not.
However, for tax purposes, both advertising fees and commissions are treated the same, so both answers are correct. Thanks for the question.