Is revenue from inventory liquidation a taxable income ?
Revenue from inventory liquidation isn't included in the Product Sales in 1099k so my understanding is that it should be recorded in "Other Income" in Quickbook, which is non-taxable income.
Please correct me if I'm wrong.
Thanks in advance.
Is revenue from inventory liquidation a taxable income ?
Revenue from inventory liquidation isn't included in the Product Sales in 1099k so my understanding is that it should be recorded in "Other Income" in Quickbook, which is non-taxable income.
Please correct me if I'm wrong.
Thanks in advance.
3 respuestas
Seller_Hi7wbO2Kbo6bl
Of course it is taxable income.
But don't ask those sort of questions here.
Ask an accountant.
Quickbooks is just a means of keeping track -- a spreadsheet works just as well.
Quickbooks is not for advice or tax information.
Seller_nRFmxiQg4EGrw
With very few exceptions, ALL income is taxable income. Of course, if you are liquidating, there is a cost basis of the items being sold; it's possible that the NET amount is zero, or even negative, in which case you get to take a loss; but you must report the INCOME, then deduct the costs or other expenses.
As far as tax reporting goes, there is no difference between selling at liquidation, and selling at any other price.
But based on your question, I second the recommendation that you consult a tax professional. They will likely more than pay for themselves in either reduced tax liability, or in avoiding fines for improper reporting.
Steve_Amazon
Hi @Seller_lBqAWikWAEnTX,
Steve from Amazon here, thank you for the post. While I am unable to provide specific tax advice, I have provided several resources below with more information on Amazon tax guidelines.
State Tax Registration Numbers
I also recommend that you contact a licensed CPA with further questions as well.
Thanks,
Steve
