Super helpful video! I plan on starting a bricklink store in the future (mostly just sealed sets and minifigs), but the realization of taxes complicating things has made me hesitant. Your vid helped clarify some questions I had, to where it now seems less daunting. Much love, I hope your store continues to grow 💛
My Best advice is to have a tax accountant. They know the rules and think of deductions I never would. Yes, you can deduction, anything you buy for the business like, akro mils, a chair, a table, a laptop, pens, garbage bags, mileage to the postage. Mileage to buy legos, cameras, all fees, paper, labels, baggies, plus the home office, etc,etc,etc... It maybe confusing, but not to a tax accountant. Plus you deduct their fees also.
I agree! I am more than willing to pay someone to do our taxes because she knows all the ins and outs and is very meticulous, especially when it comes to the business. So worth it!
The most important time to think about taxes is when you are starting a business. Since there a lot of upfront cost with most businesses and often a loss is shown in the first year or two. A paper loss is a tax refund. However, if you show loss year over year then it’s a hobby not a business and you can’t continue count the loss. PayPal and eBay send a w9 if you receive over $20000 in the year which the IRS was trying to change to the $600 limit you mentioned. I think it got pushed back but it doesn’t really matter to me since I’ll report it either way.
I despise Tax season. I have 3 businesses have to track. A dry cleaning business, a online fabric business that I'm a partner in, and online resale business (including Lego). I pay estimated taxes quarterly. I use Quickbooks Pro for the DC and resale business and Quickbooks online for the fabric business. Quickbooks is super easy to use but can be pricey.
Yes, our accountant took all of that into consideration when doing our taxes. The shop was built primarily for the business so we have been able to put that on taxes.
Super helpful video! I plan on starting a bricklink store in the future (mostly just sealed sets and minifigs), but the realization of taxes complicating things has made me hesitant. Your vid helped clarify some questions I had, to where it now seems less daunting.
Much love, I hope your store continues to grow 💛
Glad this video helped!
My Best advice is to have a tax accountant. They know the rules and think of deductions I never would. Yes, you can deduction, anything you buy for the business like, akro mils, a chair, a table, a laptop, pens, garbage bags, mileage to the postage. Mileage to buy legos, cameras, all fees, paper, labels, baggies, plus the home office, etc,etc,etc... It maybe confusing, but not to a tax accountant. Plus you deduct their fees also.
I agree! I am more than willing to pay someone to do our taxes because she knows all the ins and outs and is very meticulous, especially when it comes to the business. So worth it!
The most important time to think about taxes is when you are starting a business. Since there a lot of upfront cost with most businesses and often a loss is shown in the first year or two. A paper loss is a tax refund. However, if you show loss year over year then it’s a hobby not a business and you can’t continue count the loss. PayPal and eBay send a w9 if you receive over $20000 in the year which the IRS was trying to change to the $600 limit you mentioned. I think it got pushed back but it doesn’t really matter to me since I’ll report it either way.
I despise Tax season. I have 3 businesses have to track. A dry cleaning business, a online fabric business that I'm a partner in, and online resale business (including Lego). I pay estimated taxes quarterly. I use Quickbooks Pro for the DC and resale business and Quickbooks online for the fabric business. Quickbooks is super easy to use but can be pricey.
I can see why you would dread tax season! :-)
oh god tax guhhh,,,, lol got my papers Friday for my tax and I dread doing it hahaha
When you built your inventory room and paid for shelving/labor did you use that as a business tax write off? Thanks!
Yes, our accountant took all of that into consideration when doing our taxes. The shop was built primarily for the business so we have been able to put that on taxes.
Do you need receipts for the bulk you buy from individuals, or just keep track of that in your inventory expense report?
Do you pay yourself and your husband wages / salary from your business? Also wondering why, if you do or don't? Thanks, love the channel :)
No, we don't make enough to do that. We use our profits for personal use, so that is our wage. :-)