I don't disagree but this is the same for walmart and every other company that sells anything. Sales tax goes to the state and income tax goes to the Federal government.
@@commonwealthflipper it's just crazy that they tax the same items over and over again. I buy from the store I pay tax. You buy from my yard sale to resell and both parties pay tax again. If that person sells, then more taxes. It has to end somewhere
The tax to gdp ratio in the us is already pretty low compared to most other countries. Also most developed countries tax the same item multiple times through vat taxes. cities, states and the federal government are going deep into debt mostly because taxes are too low. We provide a lot of the same services most developed countries do but our tax rate isnt keeping up. We cant have our cake and eat it too. We need to pay more in taxes.
Thanks for the video. I’m just a part time reseller who has a good regular job and already paying out a lot in taxes. So before I got started I educated myself and also asked my accountant for tips on what I can claim. Glad to see for the most part I am doing what you are suggesting. Separate checking account was 1st thing, then tracking every expense and the cost of inventory. Mileage adds up quickly and I think folks might forget how much cost are involved. I elected to get paid weekly from my sales, and the 1st thing I do is set aside 20% into a separate “savings” account for next years tax bill. Is that enough? I don’t know yet, but I am hoping it is close. If it is a grey area on the taxes, we won’t claim that and can just feel confident that our records are complete and accurate. I don’t want to trigger some audit or worse get penalized. I started reselling hopefully to make a little profit and to do something fun with my wife. So far it’s going fairly well and just trying to build momentum. So thanks for sharing your time and adventures with us and freely passing along tips and advice. Peace
This is a good video for those who think you can make all this money reselling full-time, yes you can make money but you also have tons and tons of expenses that take away from your profit. We sometimes don't realize how much we spent during the year until tax time.
I have a 1990 Ford Ranger for 100% of my reselling business. I do all my resourcing in my local area I generally put 50-80 miles per week. I have a system for every purchase & I do a monthly P & L with expenses report my bookkeeper loves my system & tells me she wishes more people was a organized.
Agree with you on finding all the legal ways to reduce your taxes. I could never remember to log my miles so I subscribed to an app that automatically logs all my trips (personal & business) All I have to do is login to the site and choose the purpose for the trip. Couldn't believe how many miles I drove last year in my reselling business. Certainly contributed to lowering my taxes burden for 2023! My Reseller Genie
It’s great that he is doing this whereas most shy away from it for obvious reasons. I’m a new-again reseller… I now save my gasoline sourcing receipts.
Exactly! In the TTC fb group there are a few ppl who jump on every tax post and say “AsK An aCCoUntanT!” That unhelpful answer probably leads to a ton of resellers showing up to Jackson Hewitt in their local Walmart at tax time with no documentation. I got roasted in that group once for informing people what I track and how. The general response was I shouldn’t do any of that, the accountant should. What? Accountant track my mileage? lol. That group seems to have about a 25/75 ratio of good resellers to people who have no clue what they’re doing
If you have a family, and you own the business, you can employ your children and pay them a salary. If the children are minors, and are working in their parent's business, they don't have to pay FICA, and they get the full standard deduction on their earned income, so they won't pay any tax unless they really make money. They can put their earnings in a Roth IRA, and in 50 or 60 years they'll have $100 for every $1 they put in. Of course, the salaries are a tax deduction to the business. The children must do legitimate work, but sorting items, packing, and shipping are definitely legit. The bad thing about depreciating buildings, or part of your house, is that depreciation reduces the cost basis and subjects you to depreciation recapture tax. Renters don't need to worry, you can write off a portion of your rent with no future tax consequences.
Great discussion. Things get easy when you are prepared. It should also be mentioned that if you are only selling personal items and not operating/filing as a business, you do not have the ability to deduct expenses. You would pay taxes on profit over and above what you paid for the item. Personal items sold for less would not have a profit and no taxes would be due. The IRS has a great explanation with examples on their website. Cheers! * My Reseller Genie * I dream of Genie *
My husband and I just found your channel. So much great information for us to take away from your video. We did hit the subscribe link! I DREAM OF GENIE
If you are a reseller either online or locally be careful how you declare your year end inventory, it could be considered as capital gain for the following year.
My Reseller Genie! Oddly enough I was just thinking about how I want to track my expenses for next tax season when I saw this video this morning. Good timing!
I've had my tax person tell me I am not reporting enough. I have tried difference ways to keep track of everything and it is hard for me to be so detailed.
Yea taxes is killing ebay for both buyers and sellers! which is sad! I buy less as i know i have to pay a WA tax which isnt cheap and most times say why bother. Then as a seller it hurts me too seeing less profit. 10% ebay fee 9.5% wa sales tax for my area plus shipping which i offer free.
I commented on another channel that was starting a series with a new eBay store to show how to build it from nothing and asked that they PLEASE mention that when you are looking at profits you have to think about taxes. The response was "Oh, there are too many variables with taxes, I'm not a professional so I'm not going to mention it at all" The target audience is new resellers - what a way to set them up for a shock later. 😞
3 cheers for the play button on picker! I finished all the videos up to date (it happened fast cause apparently the last 2 years I've kept up with them, so once I hit that, I had already seen them all). I have started watching ADHDave picks stuff now, but I'm not going anywhere, I'll work on this channel too, and trash to cash and your new picker videos. Keep it up!
Good advice. Documenting & logging expenses, will go a long way, to making tax paperwork more straight forward. For those folk, who only occasionally resale, the paperwork can be very off-putting. Sadly, that is the price of doing business.
My Reseller Genie . I dream of Jeanie Only thing I have not been good at is doing the mileage but I keep all my receipts for anything we buy to resell or all my packing materials. I think my CPA does right off a little portion of the house cause I have one room that is completely resell we don’t use it for anything else . It does help those write offs. While I was watching this video I downloaded a couple different apps for mileage and will check them out and see which one we want to use. Yard sale season is about to start here in Texas it’s been slowly trickling but we haven’t really been out much but I’ll make sure the next trip we take I’m gonna start keeping the mileage. Thanks for the reminder ! Love your channel been watching both your channels for years!
Love it when people make the argument “rich people do anything to avoid taxes” and im always like “who even wants to pay taxes?!” lol 😂 if you want to burn a percentage of your income and give it to a government that doesn’t take care of you like they say they will then that’s on you 🤣🤣
You don’t have to pay tax on items you sell at a loss, which is stuff like turners old bat and old shoes. In fact, it’s considered a loss and goes against items you sell at profit. That’s why squeezing all these tax dollars out of us is so ridiculous, down to $600 gross. In the old days, they didn’t even start until 20K because it’s basically all loss or considers a “hobby” up until that time.
I would like to look into the my reseller genie but I don’t think I am a big enough reseller to warrant the expense so I dream of my reseller genie instead😊
Another great video! Got this message in an email from eBay last week and thought it would make a good topic for one of your flipper videos. "We’re reaching out to let you know that, starting May 15, your listings that display calculated shipping will default to showing eBay Labels discounted shipping rates." I'm not sure if this is targeted to just some sellers or if it went out to all sellers that use calculated shipping. THANKS!
Im not a reseller or anything like that, i just enjoy the hunt. One curious question, how do you justify your yard sale purchases without receipts? Thank you
I dream of Genie. I sell sewing patterns on ebay & doll clothes patterns sell very well. Good score on the Cabbage Patch doll clothes patterns! Lots of grandma's still sew doll clothes for their little darlings!
I took your advice on getting a separate account. But it wasn't just because of you. It was in conjunction with the Hairy Tornado $20 house flip series. I decided I wanted to just work out of one account to see how much I can turn $100 bucks into. Either way, it should work in my favor. My reseller genie. I dream of genie. - Sponge
bottom line is Self Employment tax or 1099k that is reported to the iRS from every platform that you make $20,000 and 200 transactions is only 15.3% so say your lucky to Gross $100k and you don't use any business deductions your Tax Burden (or what you owe the IRS) is $15,300 SIMPLE math everyone now even if you took $50k Of business expenses off your $100k gross your left with $50k net so on $50k Net at 15.3% Self Employment tax you owe the IRS $7650 or (half of that $15,300) so that $50k you spent on your business expenses ONLY helped you save $7650 off your self employment tax burden ALL HAVE to remember SELF employment taxes is Totally Separate from your Personal Income Tax 2 totally different things you cant Use any business Expense and DEDUCT that from your Personal Taxes (or Earned Income) btw in this example if you end up with $50k Besides owing $7650 for Self Employment tax (which is really Social Security tax and Medicare tax) you also have to report that $50k on your Personal Income Tax and Pay Earned Income taxes on that $50k so you are all making a mountain out of a mole hill
I'm wondering what the average % of their income most ebay people pay in taxes. I don't deduct everything I should because I am a disorganized mess and I am afraid of being audited. We were audited several years ago and it scared the daylights out of me, so now I feel I underclaim. Is having thousands due each year normal? I only have about 70K gross, then after shipping and COG, it's about half of that which I am taxed on. Anyone not have to pay much, please chime in! I dream of Genie!
The deductions I get to take on my reselling business helps to lower the tax liability of my wife’s W-2 income. Now, if SALT cap expires next year (hope Congress does not renew it), that’ll help even more-when the SALT cap was established in 2017, it was a tax increase of around $10k/yr for me and my wife. Resellers who have their company set up as a single member LLC can file on their personal income taxes…if you wrk it of your home, you can claim the space used for reselling (office/storage, etc…), a portion of your utilities (commensurate with the % of space in your home that is used for reselling), cell phone, internet, streaming/cable, gas/mileage, a “work” vehicle, equipment used in reselling (cameras, computers/tablets, monitors, TVs; and of course shipping/packing and office supplies. When we still owned 2 rental properties, we had almost no tax liability due to the deductions and credits we could take for reselling and the rentals.
I copied your info thank you, what is the SALT TAX? Though? Very curious. I thought you could do everything that you stated and others say no you can’t?💁♀️🙋♀️💪♥️🇺🇸🇺🇸😇Thanks for your help, if you kindly don’t mind. SALT cap not Tax oops sorry
I use my receipt for high store I go to and have a list of how far each one is, I track this all the time. If I am out yard saling I note mileage leaving then coming home. I have a planner I write in and add it at the end of the week, then month and then your yearly is easy to calculate👍🏻that’s just me
That probably requires context. I was super sick last year without a diagnosis(ended up being Aplha Gal so no more cheeseburgers), but after being in the hospital multiple times, I became almost three months behind on my car. They backed me into a payment corner and took it as I’d already paid a majority of it off and it was more lucrative for them to take it. Didn’t have a diagnosis until this year so I was still sick, car-less as a picker, and at the beginning of fourth quarter my mom was diagnosed with leukemia. So I liquidated 95% of my eBay inventory, right at the peak of the year, and life possessions to move and help. Despite all of that, having still sold a gross of 32k, because of the records I kept, I was able to prove I broke even when I could have been screwed. If I can do it under those circumstances, anyone can do it with the right info and records. So, don’t get overwhelmed by the taxes. It’ll be ok.
@@Stefnmaddy Thank you! My mom is heading in for a Bone Marrow Transplant next week. They figured out what was going on with me and I now have relief and am healing. And I’m well on my way to rebuilding my eBay and TH-cam. So far it’s been an excellent year!
Keep it simple. Be aggressive with deductions, but not with income. If you buy a bag of dog and cat treats and only give it to the pets during videos, it is deductible.
Kevin, what are your thoughts on pay in taxes quarterly or yearly. To me, I really have no idea if this is correct, I would think paying yearly would give ME the interest on that money🤷🏼♀️
Interesting point of view… taxation on reselling is technically, “double taxation”. Even a yard sale permit and the requirement to report your earnings is the same. These products have already been taxed when new. My high school teacher used cars as an example. You buy a new car and pay tax on it. You trade it in on a new one and the tax is deductible on the new one. You sell it privately and you’re supposed to claim the entire sale’s tax to the IRS? Isn’t that technically the same as reselling and double taxation? Maybe the question is in the profit and being able to prove it? I pay my honest share either way. Just a thought.
@@thegardenstatepicker My county also taxes my inventory! So lets say I buy an item at an estate sale (in my county estate sales are required to charge sales tax.) Owner 1 bought item brand new and paid sales tax at the time they originally bought it. Owner 1 has an estate sale and the item is sold and sale tax is again charged on it. Now I, owner 2 (aka reseller) has it in my inventory so my county taxes it as inventory. Then I sell it on Ebay. Owner 3 pays sales tax on it and I pay income tax on the profit. That one item has now been taxed at least 5 times! If it sits in my inventory more than one year, I pay the county inventory tax on it every single year it sits unsold. Its insane.
Sales taxes are deductible as an expense when you buy items. Sales taxes are expensed out to state taxes when you sell. Thus, Sales taxes are not part of taxable income. As for food expense. The percentage that is deductible changes often. Keep receipts and write who,what,where,why on it. I would copy or scan the receipts for they tend to fade. Bank statements are not proof of business expenses. In an audit the auditors want an itemization of what was purchased and identified as person or business. I know for I help people amd entities with tax audits and debt resolution. Former IRS Collection Officer for 25 yrs.
@@taxrepresentationtrainingctr what I’m saying is, the item already had sales tax paid on it when it was bought new. Technically that’s double taxation. As kevin corrected me, per state not irs.
It's crazy. The buyer pays tax and then sellers get taxed on income. Everything is over taxed and people are getting screwed all around
I don't disagree but this is the same for walmart and every other company that sells anything. Sales tax goes to the state and income tax goes to the Federal government.
@@commonwealthflipper Yes, but Walmart’s lobbyists wouldn’t let it stand for long!
Income tax shouldn't exist. Screw the fed. 😂
@@commonwealthflipper it's just crazy that they tax the same items over and over again. I buy from the store I pay tax. You buy from my yard sale to resell and both parties pay tax again. If that person sells, then more taxes. It has to end somewhere
The tax to gdp ratio in the us is already pretty low compared to most other countries. Also most developed countries tax the same item multiple times through vat taxes.
cities, states and the federal government are going deep into debt mostly because taxes are too low. We provide a lot of the same services most developed countries do but our tax rate isnt keeping up.
We cant have our cake and eat it too. We need to pay more in taxes.
Thanks for the video. I’m just a part time reseller who has a good regular job and already paying out a lot in taxes. So before I got started I educated myself and also asked my accountant for tips on what I can claim. Glad to see for the most part I am doing what you are suggesting. Separate checking account was 1st thing, then tracking every expense and the cost of inventory. Mileage adds up quickly and I think folks might forget how much cost are involved. I elected to get paid weekly from my sales, and the 1st thing I do is set aside 20% into a separate “savings” account for next years tax bill. Is that enough? I don’t know yet, but I am hoping it is close.
If it is a grey area on the taxes, we won’t claim that and can just feel confident that our records are complete and accurate. I don’t want to trigger some audit or worse get penalized.
I started reselling hopefully to make a little profit and to do something fun with my wife. So far it’s going fairly well and just trying to build momentum.
So thanks for sharing your time and adventures with us and freely passing along tips and advice. Peace
Thank you for fitting TH-cam into your day so I can learn. Idk how anyone is doing this with the amount of hours in one day.
Ugh, among my crushed and flooded ebay was a tub full of 40's and 50's children's books...this video reminded me.
This is a good video for those who think you can make all this money reselling full-time, yes you can make money but you also have tons and tons of expenses that take away from your profit. We sometimes don't realize how much we spent during the year until tax time.
I have a 1990 Ford Ranger for 100% of my reselling business. I do all my resourcing in my local area I generally put 50-80 miles per week. I have a system for every purchase & I do a monthly P & L with expenses report my bookkeeper loves my system & tells me she wishes more people was a organized.
What’s a P and L with Expenses? Curious! Thank you for your help💜💪♥️🇺🇸🙏😇 Stay Safe and Wish you a Happy Healthy Prosperous 2024!
@@Kelly-nd3cz P & L is a profit & loss report
so many more deductions than people show for sure ... deductions for home office, internet, so so many things
Agree with you on finding all the legal ways to reduce your taxes. I could never remember to log my miles so I subscribed to an app that automatically logs all my trips (personal & business) All I have to do is login to the site and choose the purpose for the trip. Couldn't believe how many miles I drove last year in my reselling business. Certainly contributed to lowering my taxes burden for 2023! My Reseller Genie
It’s great that he is doing this whereas most shy away from it for obvious reasons. I’m a new-again reseller… I now save my gasoline sourcing receipts.
Exactly! In the TTC fb group there are a few ppl who jump on every tax post and say “AsK An aCCoUntanT!” That unhelpful answer probably leads to a ton of resellers showing up to Jackson Hewitt in their local Walmart at tax time with no documentation. I got roasted in that group once for informing people what I track and how. The general response was I shouldn’t do any of that, the accountant should. What? Accountant track my mileage? lol. That group seems to have about a 25/75 ratio of good resellers to people who have no clue what they’re doing
Thanks for the shoutout. My girls are gonna flip when they see this!!!
When I did reselling at the flea market it was on the weekends as I was working 40 hours a week and there was no media back then 😊😊
I Appreciate you so much! God bless you and your family in 2024 & beyond...My reseller Genie! I dream of Genie.
If you have a family, and you own the business, you can employ your children and pay them a salary. If the children are minors, and are working in their parent's business, they don't have to pay FICA, and they get the full standard deduction on their earned income, so they won't pay any tax unless they really make money. They can put their earnings in a Roth IRA, and in 50 or 60 years they'll have $100 for every $1 they put in. Of course, the salaries are a tax deduction to the business. The children must do legitimate work, but sorting items, packing, and shipping are definitely legit.
The bad thing about depreciating buildings, or part of your house, is that depreciation reduces the cost basis and subjects you to depreciation recapture tax. Renters don't need to worry, you can write off a portion of your rent with no future tax consequences.
I forget my yard sale log often. I send myself text messages when I leave a yard sale/ private estate sale. Then I log it when I get home.
Great discussion. Things get easy when you are prepared. It should also be mentioned that if you are only selling personal items and not operating/filing as a business, you do not have the ability to deduct expenses. You would pay taxes on profit over and above what you paid for the item. Personal items sold for less would not have a profit and no taxes would be due. The IRS has a great explanation with examples on their website. Cheers! * My Reseller Genie * I dream of Genie *
My husband and I just found your channel. So much great information for us to take away from your video. We did hit the subscribe link! I DREAM OF GENIE
If you are a reseller either online or locally be careful how you declare your year end inventory, it could be considered as capital gain for the following year.
My Reseller Genie! Oddly enough I was just thinking about how I want to track my expenses for next tax season when I saw this video this morning. Good timing!
Thanks for ALWAYS sharing this important reselling information! We really appreciate EVERYTHING! Be BIG Blessed 🙌
Im wondering who would say we the government should take more of our money? That would be a big fat NO they should not be taking more of our money!
I've had my tax person tell me I am not reporting enough. I have tried difference ways to keep track of everything and it is hard for me to be so detailed.
I dream of (Jeannie) Genie. Not sure what version you wanted. Also love your insights and thoughts of reselling. Thanks for what you are doing.
Yea taxes is killing ebay for both buyers and sellers! which is sad! I buy less as i know i have to pay a WA tax which isnt cheap and most times say why bother. Then as a seller it hurts me too seeing less profit. 10% ebay fee 9.5% wa sales tax for my area plus shipping which i offer free.
Tim Hawkins song The Government Can
I commented on another channel that was starting a series with a new eBay store to show how to build it from nothing and asked that they PLEASE mention that when you are looking at profits you have to think about taxes. The response was "Oh, there are too many variables with taxes, I'm not a professional so I'm not going to mention it at all" The target audience is new resellers - what a way to set them up for a shock later. 😞
Thanks for another great video!!
My reseller genie! Appreciate the info you give on the channel!
3 cheers for the play button on picker! I finished all the videos up to date (it happened fast cause apparently the last 2 years I've kept up with them, so once I hit that, I had already seen them all). I have started watching ADHDave picks stuff now, but I'm not going anywhere, I'll work on this channel too, and trash to cash and your new picker videos. Keep it up!
Good advice. Documenting & logging expenses, will go a long way, to making tax paperwork more straight forward.
For those folk, who only occasionally resale, the paperwork can be very off-putting. Sadly, that is the price of doing business.
My Reseller Genie . I dream of Jeanie
Only thing I have not been good at is doing the mileage but I keep all my receipts for anything we buy to resell or all my packing materials. I think my CPA does right off a little portion of the house cause I have one room that is completely resell we don’t use it for anything else . It does help those write offs.
While I was watching this video I downloaded a couple different apps for mileage and will check them out and see which one we want to use. Yard sale season is about to start here in Texas it’s been slowly trickling but we haven’t really been out much but I’ll make sure the next trip we take I’m gonna start keeping the mileage. Thanks for the reminder ! Love your channel been watching both your channels for years!
I dream of Genie! Would love to help get myself more organized and have been nervous. This will definitely help, thanks for all you share.
My reseller genie, great video, I always enjoy watching you!!
As a longtime tax preparer, always looking to try to organize better. My reseller Genie! I dream of Genie.
Love it when people make the argument “rich people do anything to avoid taxes” and im always like “who even wants to pay taxes?!” lol 😂 if you want to burn a percentage of your income and give it to a government that doesn’t take care of you like they say they will then that’s on you 🤣🤣
I dream of genie. Thanks Kevin great video and information.
You don’t have to pay tax on items you sell at a loss, which is stuff like turners old bat and old shoes. In fact, it’s considered a loss and goes against items you sell at profit. That’s why squeezing all these tax dollars out of us is so ridiculous, down to $600 gross. In the old days, they didn’t even start until 20K because it’s basically all loss or considers a “hobby” up until that time.
Thought it was $5,000 for this year?
Content comment for the algorithm gods.
My Reseller Genie...
Here's to hopin'.
I dream of genie - thanks for all the tips and advice you share every video
Thanks Kevin - My Reseller Genie I Dream of Genie
Congrats on the play button brother, very well deserved
I would like to look into the my reseller genie but I don’t think I am a big enough reseller to warrant the expense so I dream of my reseller genie instead😊
Anyone who wants to pay more taxes needs their head examined. Why so the government can help everyone else but us. I don't think so
I dream of genie. Appreciate your videos!
I dream of genie! Thank you for all that you do!
I dream of Genie!! Keep up the great content. I seem to learn something every time.
Sometimes it takes hard work and are no short cuts to making a side hustle or business work.
I dream of genie!!!! Love all of your videos!!!
My reseller genie is great that’s for sharing all your knowledge
Hi,, My reseller genie. Here it is! Thank you! 🙏. I dream of genie.
Another great video! Got this message in an email from eBay last week and thought it would make a good topic for one of your flipper videos. "We’re reaching out to let you know that, starting May 15, your listings that display calculated shipping will default to showing eBay Labels discounted shipping rates." I'm not sure if this is targeted to just some sellers or if it went out to all sellers that use calculated shipping. THANKS!
I Dream of Genie! Your Awesome!
Im not a reseller or anything like that, i just enjoy the hunt. One curious question, how do you justify your yard sale purchases without receipts? Thank you
Another great video I dream of Genie!
I dream of Jeannie! Thanks for the tax tips!!
Love your channels. I have kearned soi much from watching you.
I dream of genie! And a vote toward looking into paying yourself (and the kids)... both would be smart.
I do pay myself
@@commonwealthflipper as a salary I meant. Maybe I misunderstood ya. Have a great day!
I dream of Genie. I sell sewing patterns on ebay & doll clothes patterns sell very well. Good score on the Cabbage Patch doll clothes patterns! Lots of grandma's still sew doll clothes for their little darlings!
i dont seem to sell patterns that well on ebay or other patterns...
why should the government get tax on our private sales .. they got tax money the first time the irem sold....
sales tax vs income tax. Sales tax goes to the state and income tax goes to the federal government.
They only get tax on the profit. So, there is no double tax at all.
I dream of Jennie, My Reseller Genie :) - Would be perfect - I'm 66 and I'm starting an eBay / other reselling store!
Love your videos. I dream of genie!!
Good morning Kevin 😊😊
I took your advice on getting a separate account. But it wasn't just because of you. It was in conjunction with the Hairy Tornado $20 house flip series. I decided I wanted to just work out of one account to see how much I can turn $100 bucks into. Either way, it should work in my favor.
My reseller genie. I dream of genie. - Sponge
Yes!
My Reseller Genie
I Dream of Genie
I love all your videos Than You! I learn a lot.
I would love to owe a little tax after deductions because that would mean I’m making good money lol
my reseller genie sound good...i dream of genie
I dream of genie. Thank you for the videos and all you do!
Love your Videos. "I dream of Genie"
I feel like we left and made a whole new ass country to avoid this type of taxation, eh what do i know!
bottom line is Self Employment tax or 1099k that is reported to the iRS from every platform that you make $20,000 and 200 transactions is only 15.3% so say your lucky to Gross $100k and you don't use any business deductions your Tax Burden (or what you owe the IRS) is $15,300 SIMPLE math everyone now even if you took $50k Of business expenses off your $100k gross your left with $50k net so on $50k Net at 15.3% Self Employment tax you owe the IRS $7650 or (half of that $15,300) so that $50k you spent on your business expenses ONLY helped you save $7650 off your self employment tax burden ALL HAVE to remember SELF employment taxes is Totally Separate from your Personal Income Tax 2 totally different things you cant Use any business Expense and DEDUCT that from your Personal Taxes (or Earned Income) btw in this example if you end up with $50k Besides owing $7650 for Self Employment tax (which is really Social Security tax and Medicare tax) you also have to report that $50k on your Personal Income Tax and Pay Earned Income taxes on that $50k so you are all making a mountain out of a mole hill
When you file you would pay even less because of deductions.
Internet should be a write off and cell phone
I thought it was plus part of your space like say your room your working out of????
My accountant does count a percentage of mine
My reseller Genie, I dream of Genie❤❤❤
I'm wondering what the average % of their income most ebay people pay in taxes. I don't deduct everything I should because I am a disorganized mess and I am afraid of being audited. We were audited several years ago and it scared the daylights out of me, so now I feel I underclaim. Is having thousands due each year normal? I only have about 70K gross, then after shipping and COG, it's about half of that which I am taxed on. Anyone not have to pay much, please chime in! I dream of Genie!
was wondering about my reseller genie as i was doing my taxes! got to be easier...we do our own taxes...
Pay the pets a walk -on fee!!
The deductions I get to take on my reselling business helps to lower the tax liability of my wife’s W-2 income. Now, if SALT cap expires next year (hope Congress does not renew it), that’ll help even more-when the SALT cap was established in 2017, it was a tax increase of around $10k/yr for me and my wife. Resellers who have their company set up as a single member LLC can file on their personal income taxes…if you wrk it of your home, you can claim the space used for reselling (office/storage, etc…), a portion of your utilities (commensurate with the % of space in your home that is used for reselling), cell phone, internet, streaming/cable, gas/mileage, a “work” vehicle, equipment used in reselling (cameras, computers/tablets, monitors, TVs; and of course shipping/packing and office supplies. When we still owned 2 rental properties, we had almost no tax liability due to the deductions and credits we could take for reselling and the rentals.
I copied your info thank you, what is the SALT TAX? Though? Very curious. I thought you could do everything that you stated and others say no you can’t?💁♀️🙋♀️💪♥️🇺🇸🇺🇸😇Thanks for your help, if you kindly don’t mind. SALT cap not Tax oops sorry
I paid all my taxes, but I would love to”I Dream of Genie.”
I love Jocelyn ❤😊😊
I wish I could be a fraction of this structured in my business.
Get an ozone machine and tent up the stinky stuff for a few hours at a time!
I dream of genie with the light blue skin🤣
Hey Oh!!
How do you track ur miles? All I do is basically use my eBay credit card where I only spent eBay stuff on
I use my receipt for high store I go to and have a list of how far each one is, I track this all the time. If I am out yard saling I note mileage leaving then coming home. I have a planner I write in and add it at the end of the week, then month and then your yearly is easy to calculate👍🏻that’s just me
Good records are where it’s at. I broke even. It’s pretty easy to find what can be deducted and even easier to file online if we have good records.
That probably requires context. I was super sick last year without a diagnosis(ended up being Aplha Gal so no more cheeseburgers), but after being in the hospital multiple times, I became almost three months behind on my car. They backed me into a payment corner and took it as I’d already paid a majority of it off and it was more lucrative for them to take it.
Didn’t have a diagnosis until this year so I was still sick, car-less as a picker, and at the beginning of fourth quarter my mom was diagnosed with leukemia. So I liquidated 95% of my eBay inventory, right at the peak of the year, and life possessions to move and help.
Despite all of that, having still sold a gross of 32k, because of the records I kept, I was able to prove I broke even when I could have been screwed.
If I can do it under those circumstances, anyone can do it with the right info and records. So, don’t get overwhelmed by the taxes. It’ll be ok.
Here’s hoping for a better 2024 for you. ❤
@@Stefnmaddy Thank you! My mom is heading in for a Bone Marrow Transplant next week. They figured out what was going on with me and I now have relief and am healing. And I’m well on my way to rebuilding my eBay and TH-cam. So far it’s been an excellent year!
I Dream of Genie!
Keep it simple. Be aggressive with deductions, but not with income. If you buy a bag of dog and cat treats and only give it to the pets during videos, it is deductible.
In my opinion, resellers should receive tax bereavements across the board for being sustainable recyclers
My Reseller Genie!
I dream of Genie 🧞♀️
What company do you use when you file your taxes?
I dream of Genie ❤
Myreseller genie
I dream of genie!
I’m new to selling on eBay, very interested in my reseller genie. Do you have more information?
Hi Guy! How important is it to keep receipts? Best method for doing this? The print fades on nearly all the receipts I have keot.
MY RESELLER GENIE 😊
I dream of Jeanie!
Kevin, what are your thoughts on pay in taxes quarterly or yearly. To me, I really have no idea if this is correct, I would think paying yearly would give ME the interest on that money🤷🏼♀️
If you have a choice and have discipline pay yearly. If you don't have a choice or discipline pay quarterly.
If you decide to pay yearly, look up estimated tax penalties. Depending on your income, it'll be more than the interest you earn.
If you may owe $1,000 or more when you file in April, you'll need to pay estimated taxes quarterly to make sure and avoid penalties.
When you ship your items, do you go to each sales locations site to ship, or are there shipping options built into List Perfectly?
I ship from each site
@@commonwealthflipper thanks for the quick reply!
If only there was some way to redeem lawful money per USC 411 and avoid the taxable event of using federal reserve notes.
Interesting point of view… taxation on reselling is technically, “double taxation”. Even a yard sale permit and the requirement to report your earnings is the same. These products have already been taxed when new. My high school teacher used cars as an example. You buy a new car and pay tax on it. You trade it in on a new one and the tax is deductible on the new one. You sell it privately and you’re supposed to claim the entire sale’s tax to the IRS? Isn’t that technically the same as reselling and double taxation? Maybe the question is in the profit and being able to prove it? I pay my honest share either way. Just a thought.
Sales tax is a state issue shouldn’t have anything to do with the irs unless I’m misunderstanding your comment.
@@commonwealthflipper true. I should have said State and not IRS. Same applies depending on the state which of course we file as well.
@@thegardenstatepicker My county also taxes my inventory! So lets say I buy an item at an estate sale (in my county estate sales are required to charge sales tax.) Owner 1 bought item brand new and paid sales tax at the time they originally bought it. Owner 1 has an estate sale and the item is sold and sale tax is again charged on it. Now I, owner 2 (aka reseller) has it in my inventory so my county taxes it as inventory. Then I sell it on Ebay. Owner 3 pays sales tax on it and I pay income tax on the profit. That one item has now been taxed at least 5 times! If it sits in my inventory more than one year, I pay the county inventory tax on it every single year it sits unsold. Its insane.
Sales taxes are deductible as an expense when you buy items. Sales taxes are expensed out to state taxes when you sell. Thus, Sales taxes are not part of taxable income.
As for food expense. The percentage that is deductible changes often. Keep receipts and write who,what,where,why on it. I would copy or scan the receipts for they tend to fade.
Bank statements are not proof of business expenses. In an audit the auditors want an itemization of what was purchased and identified as person or business.
I know for I help people amd entities with tax audits and debt resolution. Former IRS Collection Officer for 25 yrs.
@@taxrepresentationtrainingctr what I’m saying is, the item already had sales tax paid on it when it was bought new. Technically that’s double taxation. As kevin corrected me, per state not irs.