Hi,
I opened my own e-commerce store December of last year through my own website and on Etsy. I have invested about $4,000 into the store (including website design, photography, inventory, packaging, online hosting, business cards, etc) throughout the year and have only made $500 in sales for 2016 since I launched the store in the last month of the year. Foolishly, I didn't do my taxes for my online store earlier this year and now, I have a few questions on how I should go about this.
Since I have used a large amount of money to set up the store in 2016, would those expenses carry over to 2017 to reflect a loss? Without those initial investments, it would seem like I have made a profit for 2017, which is inaccurate since I still haven't broken even yet.
What kind of forms should I fill out to file taxes for an e-commerce store? I'm the sole proprietor and is also located in New York.
Thank you for your help in advance!
I opened my own e-commerce store December of last year through my own website and on Etsy. I have invested about $4,000 into the store (including website design, photography, inventory, packaging, online hosting, business cards, etc) throughout the year and have only made $500 in sales for 2016 since I launched the store in the last month of the year. Foolishly, I didn't do my taxes for my online store earlier this year and now, I have a few questions on how I should go about this.
Since I have used a large amount of money to set up the store in 2016, would those expenses carry over to 2017 to reflect a loss? Without those initial investments, it would seem like I have made a profit for 2017, which is inaccurate since I still haven't broken even yet.
What kind of forms should I fill out to file taxes for an e-commerce store? I'm the sole proprietor and is also located in New York.
Thank you for your help in advance!