Amazon FBA Tax Deductions: Complete List

ShelfKeeper Knowledge Base by ARJE Bookkeeping

⚡ Quick Answer

Amazon FBA sellers can deduct product costs (COGS), FBA fees, shipping costs, advertising expenses, home office expenses, software subscriptions, professional services, travel to trade shows, packaging materials, and more. Proper tracking of these deductions can save thousands annually.

Overview

Comprehensive guide to all tax deductions available to Amazon FBA sellers including product costs, home office, shipping, advertising, and more.

Frequently Asked Questions

What are the most common Amazon FBA tax deductions?

The most common deductions include: Cost of Goods Sold (COGS), Amazon FBA fees, shipping and freight costs, advertising/PPC costs, home office deduction, business insurance, software subscriptions, professional services (accounting, legal), and product samples.

Can I deduct my home office as an Amazon FBA seller?

Yes, if you use a dedicated space in your home regularly and exclusively for your Amazon FBA business. You can deduct a proportional share of rent/mortgage, utilities, internet, and insurance using either the simplified method ($5/sq ft up to 300 sq ft) or the regular method.

Are Amazon FBA fees tax deductible?

Yes, all Amazon fees are tax deductible as business expenses, including referral fees, FBA fulfillment fees, storage fees, subscription fees, and advertising fees. These should be categorized properly in your bookkeeping system.

How do I track deductions throughout the year?

Use bookkeeping software like QuickBooks connected to your Amazon Seller account, or use ShelfKeeper to automatically categorize and track all deductible expenses. Keep receipts and records for at least 3-7 years.

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Arnold Dizon

Founder of ARJE Bookkeeping • Amazon FBA Financial Expert

Helping Amazon sellers master their finances with ShelfKeeper.