Welcome! If you sell stuff online or are looking to get on top of your business taxes & personal finances, you've come to the right place. I'm CPA and online seller on a mission to help my fellow resellers.
I've watched several COGS videos and still don't quite understand. Regarding the sales tax I pay when I buy inventory at a Thrift store. If I buy 10 items for $2.00 each totaling $20 plus the 8% tax, do I use $2 as the COGS for each item, OR, add the sales tax as well, making each item $2.16 COGS?
here, so you dont have to look all over the bloody place for this frickin form. i got it from the sec of state , state of oregon website. copy and paste: Center Uniform Commercial Code (UCC) Notary Authentication (Apostille) Business Records & Statistics Nonprofit Services License Directory Forms Small Business Assistance Corporate Transparency Act The Corporate Transparency Act (CTA) was enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act. The CTA includes significant reforms to anti-money-laundering laws and is intended to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud. The CTA establishes Beneficial Ownership Information (BOI) reporting as a requirement for corporations, limited liability companies, and other similar entities formed or registered to do business in the United States. The Beneficial Ownership Information (BOI) reports are filed with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. Five Essential Things to Know sos.oregon.gov/business/Pages/corporate-transparency-act.aspx Reporting companies submit reports electronically through FinCEN’s E-Filing website. Select "File BOIR".
I do sports cards so let's say I buy a $1K card but I don't sell it until 3 years later. Do I count that card as part of my inventory each year until it sells? Thanks in advance!
I was fortunate to retire early. 2024 is my first year without working income. My only income is IRA distribution (January), and some Roth conversions (January and probably December). So my income is "lumpy". I paid what I fully estimated in Q1 for the IRA dist and Roth Conv. I then did not pay a Q2 estimate. I don't plan on a Q3 payment, but will make a Q4, if I do another Roth conv. Am I doing this correctly in this lumpy income circumstances, assuming my math is correct for what I owe for each event? Or do I smooth the payments and make one each quarter? Thank you.
When entering the information into your free inventory spreadsheet, does the PURCHASE DATE matter and if so, could you please explain further. I'm using personal items that were gifted to me as the start of my beginning inventory. This video helped explained how to find the price of these items but didn't make clear about the date. Should I just put the date at the beginning of the year instead of the correct 5 years ago date ?
I tried this and it was a total waste of time. Anyone that I was able to talk to has their hands tied by rules and regulations. Don't get your hopes up. If you try it I wish you luck.
My sales have been fine, not as strong as last year, but this is my hobby job and I love doing it. The extra money i bring in gives us money to do vacations or bless someone in need. I don't "have to" do reselling, I get to because it is a hobby that makes me money and is fun!!!!
Oh Yes. I recommend this order CPA, DBA(registered with county or state), EIN(Sole starting out), Separate business account(you need the DBA/EIN), Getting inventory organized including a inventory/accounting system in place, Getting the shipping systems and carriers in place, Listing double your estimated daily live number to build that draft bank up over a few weeks, then making things live while maintaining that draft bank/live number while shipping things out and dealing with customer service. It sounds complicated. But once you break it down and do the work it is not that scary. If your starting out on your own out of your house/Garage kind of deal with no employees or "storefront" property where someone can get hurt then a sole is all you need. If you have an employee(1) or something/some place you are at someone besides yourself can get hurt(2) or your doing a service (like landscaping etc) where your actions do 1 OR 2 then that is when a LLC should be used. There are exceptions but generally if it is just you selling exclusively online a sole is recommended. Your a sole by default. But you still need a DBA, EIN, and separate account to save several headaches(and lots of backtracking/lost deductions). A LLC is the next step once you get to that scaled position and a S-corp that cherry to aim for. I am not a tax pro this is just my opinion that if your on your own selling just online you should go Sole starting out. Once you get employees/do a service where you can get sued you need a LLC. Once you have enough employees your doing meetings then you can get into that magic S-corp.
@@swbottles The DBA, EIN, and Sole are needed if they make a profit. The accounting and inventory they can do on their own starting out. But eventually a CPA will save headaches.
First, thank you kindly for your help. Im wondering where you place sales taxes collected by ebay? I ask because in the sales report I printed from ebay, it is included in the total sales amount. Thanks again
If sales tax is included in the sales number you are listing on your Sch C, then yes you'll want to make sure you deduct those. I would just put them in the taxes & licenses line.
Thank you SOOO much! And for the spreadsheets. It can feel so overwhelming and I will probably use your services down the line when I grow bigger! Lord willing! haha.
I've been struggling with this, I had no tax returns for the past 5 years due to several major injuries I had, and then unemployment since I got to where I could do some work. This year I'm self employed. I've made over a $1k, but have no idea how much I will make for the year. I've been holding back 30% of my income, but my pay can widely vary month to month. So I still don't know how much to pay quarterly.
How do you list items that you just have around the house that you start your business with for the tax form. Do those items not count, what do you put for those?
Doubt if you will see this question, but thought I would try. How do you handle returns being relisted? Do you keep all the sales info from the original line, then add a new line for the item to sell, but note it as a $0 COG? Do you just readjust the original line for the item. Can you explain exactly how you would go about this? Thanks
I raise sheep as a hobby and my own meat. Im thinking of having 2 processed a year and try to sell the meat to friends to see if it would be worth it. Can i take off the cost of feed for those 2 during tax time?
My question is concerning llc companies that haven’t been used in ten years or more. Does this apply to these as well? Do each of these llc companies have to be filed, even if they are not in use?
But what if im selling stuff from a previous (dba) business. for example i started a llc this year 2024. And opened a store brick an motor. I took all the stuff i have purchased over the years and put it in my store along with the storage unit auction inventory. I made this current year of 2024. I have sold so many items i have occured over the last 2-3 years. i have sold over $20k in inventory in 2 months but alott of that inventory is stuff i have occurred over a few years of selling on ebay and some of it is from what i have gotten this year about $8k i have spent this year on inventory (from storage units). Thats unfair on my part to say i have sold over 20k but only bought $8k worth of inventory. Yet most of the things i sold were mine for the last couple years. Please help me understand. With that being said i will now for the future units i get, for example say i spend $300 on a unit with 100 items and only keep 70 items (trashing 30) i then will do 300 divided by 70 ($4.28). And write 4.28 on each items tag in the store . When it comes time to do ending inventory i will add all the tags original price (4.28) and that will be my ending price. Correct?
