Tax and money questions digital sellers and course creators ask

Is Inventory Tax Deductible?

Yes, but not when you buy it. Inventory costs become deductible as Cost of Goods Sold (COGS) only when the item actually sells, calculated in Part III of Schedule C. Unsold stock sitting in a warehouse or garage isn't a write-off yet, even though you already paid for it.

What Is The $600 Rule On Cash App?

The $600 rule requires payment apps like Cash App to send you and the IRS a Form 1099-K if you receive more than $600 in a year for goods or services through a business account. It does not apply to personal payments between friends and family, and the IRS has phased in the threshold gradually rather than enforcing $600 all at once.