CPA walkthrough of the infamous Schedule C sole proprietorship business tax form
Вставка
- Опубліковано 17 бер 2024
- A member of my Financial Insiders membership asked if we could walk through a Schedule C, and I was an easy sell! This video is part of my monthly live coaching Q&A call for Financial Insiders, and we went through it and answered some common reseller questions along the way. Get your popcorn!
Waitlist to be notified when registration goes live for my tax scramble workshop here: forms.gle/NQetLTXAhThjdfhX8
Want to learn more about Financial Insiders? notyourdadscpa.com/financial-...
1) SUBSCRIBE to learn how to get a handle on your business!
/ @notyourdadscpa
2) FREE GUIDE: "Business Starter Guide for Resellers"
notyourdadscpa.com/business-s...
3) COME JOIN THE FREE GROUP!
Accounting for Online Sellers free Facebook group: / accountingforsellers
4) READY TO DITCH THE TAX ANXIETY?
Reseller Tax Academy: www.resellertaxacademy.com/
Bookkeeping Basics for Resellers: notyourdadscpa.com/bookkeepin...
Reseller Finance eBook: notyourdadscpa.com/reseller-f...
5) LET'S CONNECT!
Follow for tips on Instagram! / notyourdadscpa
Facebook: / notyourdadscpa
Website: www.notyourdadscpa.com
6) NEED TAX HELP? Join my signup list here:
notyourdadscpa.com/tax-season/
My CPA did a schedule-C for my AMZN/EBAY businesses (I have a sole proprietorship). I get a W2 from my main job, and a W2 from my part time job. I made good money, was profitable on my e-commerce businesses and still had to end up paying almost $900 for federal taxes for 2023. The Child Tax Credit didn't help as I had a child turn 17 during the year (which took that credit from 2000 down to 500). Hopefully next year I will get a return as I will be filed as single/0 for the entire year plus I have the box checked for multiple jobs. It's just so frustrating to work hard day in and day out and then get hammered at the end of the year and have to pay instead of getting something back.
Thank you sooooo much. You filled in the gaps on so many things. I find filling out the original forms are much more intuitive than going through the ambiguous Turbo Tax 'interview'. Now I know what goes where and can skip their open ended questioning. Still trying to figure out how I can get eBay refunds as deduction from income and not an expense in TT though.
You always come through in clutch
To the moon with this video! 🚀
Thank you 😊
Thanks
Thank You for the Great Videos!
I do not think you have addressed this before, but for COGS, how do you figure COGS on the sell of only part of a lot (or a set where you cannot buy the parts individually)? Also, some parts of lots are not worth the time to re-sell and I donate these parts, which I think you have said those parts would be considered sold for $0? I use, as you term it, the accrual "shortcut (lazy accountant)" method of inventory.
Hi Mark, I e-filed my taxes on Sunday. A couple things that I feel are wrong after listening to you. 1) I did not file a 1099, as I did not get one from eBay. 2) I asked them if I needed to only claim 1/2 of my Turbotax fee from 2022; she said no, so the whole fee was claimed. But, for 2022 tax year, I asked if I could claim the fee and was told no, so I didn't claim it for 2022. 3) I have not listed inventory thinking that the COG would suffice. Thank you for your help!!!
He goes over not needing to keep an inventory if you’re doing the cash method, only deducting your purchases for the year
Oh hey! Today is the day!
Hi! The sales tax collected by the platforms on behalf of buyer is entered in the item 23 (taxes and licenses) or that field is for sales tax I spent on inventory? Thank you
My adhd & anxiety is making me think about and ask this question now, 6 months before tax season lol:
I guess I'm gonna hire a CPA this year since ebay and paypal already told me I met that $600 threshold and required me to register my social security number for taxes. I do plan on keeping redceipts of all things I buy that are used in selling on ebay and will track expenses of things if I go out to thrift stores and buy more stuff to sell. I also will come up with some sort of record of how much items I purchased sold for on ebay etc. But, when do I look into hiring a CPA since I just started selling on ebay this year. Do I just find one in Jan. 2025, or should I do it this year sometime?
I read somewhere small buisnesses should meet with their CPAs 4x a year.
I’ve been tracking my exact COGS and I didn’t realize I was supposed to be tracking what I paid during the year and what I didn’t sell… I just thought, you know, I’d track what the things I sold cost. Why does it need to be over complicated??
I'd strongly recommend his video specific on COGS ua-cam.com/video/4dkbgv1psEI/v-deo.html
He goes thru both the accrual method that you did not do, and the method that you did do, both of which can work out perfectly.
i sell on ebay and they collect sales tax, how/where do I put that when filing my return?
Hello do I need to file anything in 2024 for a sole prop business I started in January 2024? We didn't make any profit yet according to the cash method.
Mark, would you recommend putting all ebay/PayPal fees on the fees line in the expenses section or putting them in “other” and listing them out how you did in the video?
I typically put them in other expenses and actually write out eBay fees, but there is flexibility here
Hi mark, I sell mostly trading cards on both Ebay and another platform TCGplayer (Who was bought buy Ebay). Do I need to fill out a sperate Schedule C for each platform I sold on, or can I lump them both into one Schedule C?
I’d still have a kiddo file. With $10K earned income…. They can do a lot even without an income ( less than the SD) or FICA requirement (under 18 provision) like retirement accounts, etc….
It’s all about the ‘earned income’
LETSS GOOO
Hi I bought a laptop and GoPro camera for my reseller business. Do I make this deduction under Cogs as materials and supplies, office expense, or other expense on schedule c?
Not cost of goods sold, but it could go under supplies or office expense if each item individually is less than $2,500
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.
@@notyourdadscpa awesome, thank you. We greatly appreciate you!
Could you put eBay fees in Part II, Commissions and fees?
I’ve seen a lot of people do that. In the end i don’t think it matters so long as the end result is right
I think so I've seen it down that way before
how do you treat Filipino va pay? No 1099, right? categorize as labor expense? is that a red flag?
No 1099 required for foreign contractors. You can still list it as contractor expense
Chachingking sent me...just subbed you
My college student does Poshmark and earned 11,349. Does she need to file. Please help
Yes
Should I be able to do it myself?