Deductible expenses related to an Amazon Fulfillment by Amazon (FBA) business encompass a variety of costs incurred in the operation. Examples include the cost of goods sold, Amazon fees (such as storage and fulfillment fees), marketing and advertising expenses, home office deductions (if applicable), and expenses for business-related travel. These deductions serve to reduce taxable income, impacting the overall tax liability of the business.
Utilizing applicable deductions is a crucial aspect of managing the financial health of an FBA business. Accurate tracking and reporting of deductible expenses can lead to substantial tax savings. This allows for reinvestment in the business, contributing to growth and sustainability. Historically, businesses have relied on detailed record-keeping to substantiate deductions claimed on their tax returns, a practice that continues to be essential in the digital marketplace.