I started selling apps last year, so they are affecting my income tax return for the first time. Filing as sole proprietor.
I've found Google Checkout to be woefully inadequate for record-keeping. When you try to export orders to Excel, it is limited to 5000 items per file, so I have to export a file for each month. If my sales start breaking 5000 a month, it will be even a bigger hassle.
The records that are exported do not indicate what portion of the sales are sales tax.
There is no easy way to look up what transactions fees you have paid, to be used for business expense deductions. The transaction fee always shows up as 2.9%+$0.30 per transaction, when it is actually a flat 30%! I'm just hoping I don't get audited, because there is no way to get a correct receipt for these fees from Google!!
Does anyone have any advice on how to handle these expenses correctly for tax purposes?
Here's what I've done--haven't filed yet:
- Export each month's orders, charged orders only, and summed them up to use as the value for sales income. I'm only charging sales tax in my home state, so the amount I had to remit to my state government was small enough that I'm just not bothering to deduct it.
- Went to the page for fees history to get the monthly sales values Google Checkout is using to calculate fees. Even though they are listed wrong as 2.9%+$0.30 per transaction, I can use the "last month's sales" value and multiple it by 30% to get the actual fee I paid.