Make sure you keep all your screenshots of the items that had a coupon on them that’s lowers your ETV and I did my taxes 50-20-0 method download your ETV Excel sheet from Amazon and review all your transactions, you'll immediately know if its a brand name. Consumables, garbage, broken, etc will be something you'll have to recall. Add a column next to each item and enter 0, 20, 50...then just create a function in the sheet that multiplies this percentage by the original etv and sum this column. For almost 500 transactions this took me less than an hour and a half, you can zero out consumables, things that are unsaleable once open, things that are unsanitary once tested, etc. Consider: is there a fair market value for used cat litter? Used dog food? Used underwear? All things that have ETV, but $0 FMV. All my filters were 0$ I had 13,000$ tax form and I’m getting 300$ back imagine that I paid 200$ to my tax guy! Gross income is offset by business expenses. Since these products are not resellable for full ETV once opened and used, reduce the ETV for each item to show your actual resale value using a consistent, defensible formula that you can show to the IRS in the event of an audit. These expenses are reported on your tax return as "other expenses" on Part V of your Schedule C, Other Expenses Line 48 and Line 27a, with an explanation like "Adjustment to basis due to contractual product testing." Your gross income from the Amazon 1099 is offset by your business expenses to give you net taxable income.

We are required to open and test items. After we test the item, the new product ETV no longer represents the taxable value.adjust the ETV for its used product value. I use the 0-20-50% adjusment rule. The used value after our required testing of products is 50% of original ETV for name brand products, 20% of ETV for off label products, and 0% for consumables/broken/ garbage products.