Example scenario · illustrative, not a real seller
The $62 transfer is real. So are the $24 purchase and $2 of separately paid packing. Put all four numbers in the right places before calling it profit.
What you’ll get
- A bridge from $80 receipts to a $36 operating surplus
- A labelled worked example, a visual process and an editable receipt-to-surplus scratchpad.
- A device-only action checklist and one next move: Reconcile one order to one payout record
Withheld is not forgotten. Withheld is not deducted twice.
A deposit confirms money reached the bank. It does not explain how much a particular item earned or which costs were already deducted. Reconcile two linked records: the transaction ledger and the movement of cash.
Give the order its own record
Start with item price and the shipping credit, if any, that actually belongs in seller receipts. Keep marketplace-collected buyer sales tax separate rather than treating it as money earned. Match the order to the private stock ID and acquisition evidence.
Record actual selling fees, paid labels, packing, preparation, refunds and other relevant costs. A cost charged elsewhere still belongs in the transaction review. A fee withheld from the payout should not disappear from the record—but it must not be deducted twice.
Build the bridge from receipt to payout
Write a bridge: transaction receipts, less deductions actually withheld, plus or minus documented adjustments, with any hold or reserve shown separately. Then check which order or group of orders the payout covers.
A pending balance and a transfer in transit are not necessarily unexplained losses. Read the actual provider statement and processing status. Do not replace an uncertain difference with a guessed fee just to make the spreadsheet balance.
One explicitly hypothetical example
Choose $80 in seller receipts and $18 in fees and postage already withheld. That makes a $62 transfer in this simple example. If acquisition cost was $24 and separately purchased packing cost $2, the operating surplus is $80 − $18 − $24 − $2 = $36 before income tax and omitted costs.
Subtracting the $18 again from the $62 deposit would understate the result. Calling the $62 deposit profit would overstate it. These are invented sample ledger figures, not actual marketplace charges or a tax calculation.
Match the bank without losing item-level detail
A single bank entry can cover several orders. Keep a payout reference in your private record so the total can be traced without merging each item’s economics. Do not paste buyer names, addresses or payment details into this site’s calculator.
If a return or adjustment arrives later, attach it to the original order and update the outcome. A monthly snapshot can otherwise show a success that later costs quietly reversed. Preserve the original evidence rather than overwriting it with the final number alone.
Separate operating review from tax reporting
IRS recordkeeping guidance explains the role of supporting documents for income and expenses. It does not turn this simplified cash bridge into a tax return or settle inventory valuation, deductible expenses or personal-property treatment.
Use the Form 1099-K manual when reconciling reporting forms, and obtain qualified help for uncertain classifications. For a purchasing decision, take the completed actual-cost record to the true-hourly bench. Do not finance new inventory from a payout until you understand what obligations and costs it still needs to cover.
Worked example · hypothetical, not a real seller
A bridge from $80 receipts to a $36 operating surplus
A deliberately chosen planning example for this decision. It is not a real transaction, a product appraisal, an observed market result or permission to sell. Replace the inputs only after the relevant checks.
$80.00 receipts − $18.00 withheld costs = $62.00 transferred in this simplified ledger. Subtract $26.00 of acquisition and other separately paid costs once: $36.00 before income tax. Do not deduct withheld costs twice. This is not a tax-reporting or inventory-valuation calculation.
| Measure | Example value |
|---|---|
| Receipts ($) | 80 |
| Transfer after withholding ($) | 62 |
| Operating surplus ($) | 36 |
Chosen example · edit the numbers
Receipt-to-surplus scratchpad
Illustrative inputs, not market benchmarks or an achieved outcome. Scratchpad values stay in tab memory, not saved by this application. Reload to reset.
Before the next transaction
With JavaScript and browser storage, only checked-step IDs can stay on this device. No buyer details or amounts are saved.
Can I treat the bank deposit as taxable profit?
No. A deposit is a cash movement that can combine multiple orders, deductions, reserves or adjustments. Reconcile the underlying transactions and acquisition records. Tax reporting depends on your facts and applicable rules; this operational worksheet does not determine it.
Do this next · one concrete move
Reconcile one order to one payout record
Then check whether the bank entry combines multiple orders or later adjustments. This operational example is not taxable profit, a completed tax return or a predicted payout.
Take the next question to the bench →