I have a small business and I need to know what to report

[morrigan65]

For the last year I`ve been selling on ebay. My income is only about 3,500-4,000 since I do it extremely part time for extra money. Anyways I spent about 1,000 in stock. When I report my income to the CRA would I just report my profit or would I deduct what I spent the (1,000)? Also since this is a small business would I have to buy a business turbo tax or is there anyway I can report "hobby" income. There are also cases where the buyer paid for shipping. Would I report the money the buyer sent for shipping into my profit as well?

[TurboTaxJennifer]

1. You are a small business owner but, since your business isn't incorporated, TurboTax Self-employed is the best choice for you. If you would like the added option of tax advice and review, consider TurboTax Expert Review for Self-Employed. Here's a link for more info on our products for tax year 2017 - https://turbotax.intuit.ca/personal-tax-software/online-tax-software.jsp
2. Your small business activities are included on your personal return. You'll record your total income and any related expenses (cost of the stock, shipping fees, home office if applicable, etc.)
3. In cases where the buyer paid for the shipping, you would include the total amount paid to you (including shipping) as income and then include your shipping cost as an expense.
4. Expenses lower your taxable income dollar for dollar. Try to be a thorough as possible. Little expenses like stamps or office supplies may seem minor but every little bit helps.