What's different is I live in the highest tax state in the US. And I'm sick of my tax going to other countries while homeless lay all over the ground here in Ca. I closed my eBay HOBBY business, and I have a set up with my church during the week, and on weekends, I sell in my garage. When I got a letter from eBay saying 1099 is coming after $600.00, I was finished. I paid taxes all my life while working, now retired on SS, I made 4,000 dollars last yr, that's pocket change on eBay. NOW the FEDS want tax off used clothes? LOL... good luck getting a penny from me. I donate 50% to my church. The IRS can go straight to the flames. B/C my work and contribution to YOU is over.
I am a personal seller. I don’t think it’s fair to call me a business. The items are mine which I paid retail for already. Just trying to make a few $ by selling what I no longer use. I always sell it for much less than I paid for them too. I think $400 or now $600 is way to low a threshhold. Who came up with this? This was slipped under the radar😡
I think it's pretty crappy that they changed it to $600 I'm a gamer so I buy a lot of games when I'm done I sell them I don't want to take them to a game store and get ripped off so I use eBay to get a reasonable amount back
Very nice seeing you here, Mark. I might not need your professional services anytime soon but I know you will be able to explain some tax matters so I can understand it. Definitely looking forward to seeing more of your videos...thanks!
The fact that they would come after me for making money from something I bought with money that was taxed, and will drop everything to pass a bill giving away billions to other countries while we have a trillion-dollar debt is sickening. If I can manage to scrape up 2-3000 a year from old stuff that I can use for eating out, or vacation with the family, that's not a business. that's me doing my best to figure out how to "live this American dream" during inflation.
Thanks for your videos! What about upgrades to home office- I’m replacing the floors in my office which cost about $500- is that deductible? I’ve read the tax laws about inventory storage but that would be a great topic to discuss as well!
Here is my situation. I do not have a reselling business. I have a lot of personal things, mostly from hobbies that I have engaged in, that I would like to sell. I have original receipts for most items, and I will probably end up selling most items for less than I paid for them. Would the IRS consider this a business, even though I am just selling things that I have owned?
Great stuff!! My eBay business generates approximately 30K of part time income. I work a normal job as well. My wife does approximately 20-25K annually with her 1099 home based job. Currently I file one tax return that included my W2, eBay business & my wife’s 1099 income. We file TurboTax home & business and combine all income. We depreciate the house area that is used for inventory and office following all of the legal guidelines. Am I making a mistake by not filling personal and business separately? Aside from the penalty for not filling quarterly with the business am I missing out by not filling separate? Thanks in advance, Tim
I have 3 storage units full of personal items I am selling. Do I estimate as I go what I previously paid for each item I sell? Or do I estimate the whole lot? How do I determine profit or loss from personal items. I no longer have receipts for? I've already been taxed on the items twice already. First my income then the purchase. Then taxed again to sell it.
I’ve been selling hundreds of coins on eBay. I have no original receipts when I purchased them. How can I show I am not making 100% profit.. in some cases I’ve sold them for less then I paid. Do you have another video explaining this scenario. Thanks
If my LLC business income is.equal to or less than my expenses, then does that mean I owe $0 in income taxes and self employment taxes? What form do I use to report this?
I recently began reselling dresses online after ordering them from China so far I only have sold one but if I continue to sell dresses, is it considered as a sole proprietorship and do I need to file the income on my tax return or what? Thanks in advance
I gotta a quick question, so I sell on ebay, mercari, facebook marketplace, and offerup, will the irs calculate all those unemployment taxes on all sales from those separate marketplaces?
im hearing that once you receive $600+ through any money transfer apps it becomes taxable income, but all they see is the money, what if a friend transfers me $100 through an app and i hand him a $100 bill, who is keeping track of that? how would they know what is profit and what is nothing? and if its me that should be keeping track what happens if i dont? do i now have to pay taxes on that $100? this is so damn confusing, and are local sales in person taxable? like on FB marketplace, i assume not because how on earth would they keep track of it?
Thank you for all you do to teach us about these important things. I started a separate account that I use for my reselling when I first started early this year, and I signed up for godaddy bookkeeping. For my first year taxes, as long as I have everything going through that account and I have ebay managed payments connected, I should be able to use the godaddy numbers for my taxes without issue right?
Hi i am new selling on EBAY I am planning to used a spreadsheet for my selling HOW? AND WHAT ? Am I suppose to included on that spreadsheet exactly for the IRS ?? THANK YOU VERY MUCH FOR YOUR GOOD ADVISE !!!
Question, Mark. Do you do consulting? I need to find the best way to set up my books, get someone else to take care of my sales, estimated and end of year taxes. I live in NC. Do I need to find a CPA here...or?
FB Marketplace charged a Buyer Sales Tax, but didn't report it on my Report and didn't issues me a 1099. I've reported the sale in my annual sales tax filing, how do I report it on my individual tax return without a 1099K or Misc? I'm a sole proprietorship. Thanks!
Sales tax should typically not be included as income on your income tax return. And if it's not included as income then it shouldn't be deducted either.
I am hoping you could help me. I havent filed a tax return in years. I have no earned income but just SS. I sell my junk on line. I dont know how this would effect me. I dont see much. Just for this year i have only sold $200 so far. What should i do
Good stuff! So, if I sell my stuff through an ebay seller (business seller), do I have to pay taxes on "my take" after the seller already paid taxes on the sales through their ebay business?
Would anyone know is this counts as a loss? If in 2020 I bought an iPad Pro for $700 ish. What if in 2021 I sold it on ebay. After ebay took their cut, I get about $450ish. Is this a loss and does it need reporting?
i have a question that i am stuck on. so far this year i have made around 4 thousand dollars which was all sent to my paypal. my question is does the irs care how much money i spent to make that 4 thousand or the only thing they are focused on is taxing me for that 4 thousand? I have never had to fill out one of these forms before and i dont have business or llc or anything like that this is just a little side income
Great information! I'm looking to start reselling on ebay. When it comes to sales tax is it correct that ebay takes care of collecting and paying the taxes?
in the tax academy, does it specifically go over items that were rebates? I just don't know how to write income and cost when it comes to items that I got rebates back for.
What about someone like me that’s retired on s.s.i already. Would I have to pay self employment taxes for social security and Medicare I’m already collecting
Here's my situation: I currently live in California, where taxes are incredibly high. I am planning on moving to a new place, perhaps Texas, Florida, or even South America at some point in the next 1-2 years, so I keep telling myself I should WAIT until I live in a lower-tax place to officially launch my online hustles (blog, podcast, and photography print sales). Am I on the correct line of thinking here? I want to pay as little tax as possible and am semi-flexible on where I live so I want to make the best move for my future as a digital nomad. Would really appreciate your input :)
Even if you have to pay tax in California, you'll still be left with more money in your pocket then you'll have if you don't start at all. And you'll have that year or two of experience that will help you do even better later on, so my vote would be just to start now 👍🏻
@@notyourdadscpa Thanks so much for the response! If I were to create my LLC now then, is it easy to transfer that to a new place when I do eventually move? I want to remain flexible since I move every couple of years and want to gain the tax benefits of my next location which will have more favorable tax laws
@@notyourdadscpa Gotcha! How would you recommend I get started in that case if I have an umbrella of several projects I'm looking to monetize? I currently have a blog and photography print website, and am starting a podcast soon. How should I round that all up into a personal brand entity without forming an LLC?
HELLO..readysetresell recommended you to watch...2020 was my 1st yr reselling...i'm trying keep it very simple..i wanted to add all my expenses up (cost of all inventory & supplies for the year) then subtract my total sales figure for the year ( or subtract $$ i got from paypal & managed pymts) and the difference will either be my profit or loss ....and report that profit OR loss on my tax return....then start with a clean slate for 2021 ...i can't break every item down individually ( 1300+) but i saved all my receipts for the year where ever i bought items to resell ...will this system work OK ?
I have a question, I know I complicated things for myself. We own a hat company. On the side I’m a part time reseller. I have started selling our old hat samples on my reseller poshmark and eBay since I have traction with those stores. BUT.. I’m sending the earnings back to the company. Is it possible to just submit proof I did not take those earnings because I don’t want to pay my reseller income taxes on that income I didn’t earn, but according to posh/eBay I did take that $ home. Thanks!
Even if you send those earnings to the company, unless you spend them on something deductible the profit will still be taxable, even if you don't actually take the money out of the company.
HELP HELP HELP……………………someone said if your not registered as a business that there is a 2% floor is that true, does that mean you can only write off up to 2% of expenses? Even if your just side hustling should you register as business?
Hi mark, so i have a normal full time job so lets say if i make 15k on ebay (selling off my videogame collection) and make 50k at my full time job i combine the 2 together for a total of 65k, is that what im supposed to do? Please advise
If the 15K is profit after deducting your expenses, then yes. The 15K will be subject to self-employment tax, and the total 65k will be subject to income tax.
@@notyourdadscpa thank you for the reply, however $15k is before taxes and supplies and everything else it probably comes to more like $5k. How am I supposed to prove that or do they take my word for it?
They really only keep track of your sales and ebay related expenses. Things like inventory, office supplies, etc., you need to track on your own to calculate your ultimate profit.
What if by the end of the year, my "Inventory cost" of 2020 was HIGHER than my Net Profit for the year? Meaning I didn't sell it all. Do sales I sell the next year still go off of the purchase price of the year before? Edit: I got to that segment. :)
What's different is I live in the highest tax state in the US. And I'm sick of my tax going to other countries while homeless lay all over the ground here in Ca. I closed my eBay HOBBY business, and I have a set up with my church during the week, and on weekends, I sell in my garage. When I got a letter from eBay saying 1099 is coming after $600.00, I was finished. I paid taxes all my life while working, now retired on SS, I made 4,000 dollars last yr, that's pocket change on eBay. NOW the FEDS want tax off used clothes? LOL... good luck getting a penny from me. I donate 50% to my church. The IRS can go straight to the flames. B/C my work and contribution to YOU is over.
I am a personal seller. I don’t think it’s fair to call me a business. The items are mine which I paid retail for already. Just trying to make a few $ by selling what I no longer use. I always sell it for much less than I paid for them too. I think $400 or now $600 is way to low a threshhold. Who came up with this? This was slipped under the radar😡
"keeping resellers out of jail since 2015" I literally LOL'd. Harry Tornado recommended your channel so I will be following up future videos.
Filers go to jail ...1 in 630,000 non-filers go to jail...1099 is your confession form
Love the title! Easily searchable to find content I am looking for without have to watch a huge video that contains a bunch of various topics.
Thanks.
And you nailed it with "tax anxiety".
So easily digestible. Thank you for being you!
Good stuff! I appreciate you for taking the time to share this info. As a new online reseller this is invaluable for me.
I love the way you explain things, makes it easy to understand. Thank you!
Much appreciated!
I think it's pretty crappy that they changed it to $600 I'm a gamer so I buy a lot of games when I'm done I sell them I don't want to take them to a game store and get ripped off so I use eBay to get a reasonable amount back
lol........this is LITERALLY 'in your face' valuable information🤗
Very nice seeing you here, Mark. I might not need your professional services anytime soon but I know you will be able to explain some tax matters so I can understand it. Definitely looking forward to seeing more of your videos...thanks!
Absolutely stay tuned! 🙏🏼
The fact that they would come after me for making money from something I bought with money that was taxed, and will drop everything to pass a bill giving away billions to other countries while we have a trillion-dollar debt is sickening. If I can manage to scrape up 2-3000 a year from old stuff that I can use for eating out, or vacation with the family, that's not a business. that's me doing my best to figure out how to "live this American dream" during inflation.
Thanks so much for your help on taxes!!! Harry Tornado told me about you!!! I will be subscribing to your channel!!!
Much appreciated!
Great info! Can’t wait for more videos!
Thanks for your videos! What about upgrades to home office- I’m replacing the floors in my office which cost about $500- is that deductible? I’ve read the tax laws about inventory storage but that would be a great topic to discuss as well!
I will definitely discuss in the future!
Thanks Boss, new Subscriber here!!!
Great info, Thanks!
Great info! Looking forward to more in the future!!
Hairy Tornado sent me here!
Glad you made it!
Thanks 🙏
Here is my situation. I do not have a reselling business. I have a lot of personal things, mostly from hobbies that I have engaged in, that I would like to sell. I have original receipts for most items, and I will probably end up selling most items for less than I paid for them. Would the IRS consider this a business, even though I am just selling things that I have owned?
I don't think they will consider that a business but they will tax you on ur profits
When he said IRS expects us to return $1 😂
Great stuff!! My eBay business generates approximately 30K of part time income. I work a normal job as well. My wife does approximately 20-25K annually with her 1099 home based job. Currently I file one tax return that included my W2, eBay business & my wife’s 1099 income. We file TurboTax home & business and combine all income. We depreciate the house area that is used for inventory and office following all of the legal guidelines. Am I making a mistake by not filling personal and business separately? Aside from the penalty for not filling quarterly with the business am I missing out by not filling separate? Thanks in advance, Tim
No mistake! If you are a sole proprietor (the default) than it all goes together on your joint tax return.
You don’t have tax before I saw I think about the war
I have 3 storage units full of personal items I am selling. Do I estimate as I go what I previously paid for each item I sell? Or do I estimate the whole lot? How do I determine profit or loss from personal items. I no longer have receipts for? I've already been taxed on the items twice already. First my income then the purchase. Then taxed again to sell it.
What happens if you are a person who is a minor. Do these rules apply or do they not have to pay taxes at all?
I’ve been selling hundreds of coins on eBay. I have no original receipts when I purchased them. How can I show I am not making 100% profit.. in some cases I’ve sold them for less then I paid. Do you have another video explaining this scenario. Thanks
I’m in the same boat as you
this is my same question
If my LLC business income is.equal to or less than my expenses, then does that mean I owe $0 in income taxes and self employment taxes? What form do I use to report this?
I recently began reselling dresses online after ordering them from China so far I only have sold one but if I continue to sell dresses, is it considered as a sole proprietorship and do I need to file the income on my tax return or what? Thanks in advance
I gotta a quick question, so I sell on ebay, mercari, facebook marketplace, and offerup, will the irs calculate all those unemployment taxes on all sales from those separate marketplaces?
im hearing that once you receive $600+ through any money transfer apps it becomes taxable income, but all they see is the money, what if a friend transfers me $100 through an app and i hand him a $100 bill, who is keeping track of that? how would they know what is profit and what is nothing? and if its me that should be keeping track what happens if i dont? do i now have to pay taxes on that $100? this is so damn confusing, and are local sales in person taxable? like on FB marketplace, i assume not because how on earth would they keep track of it?
Thank you for all you do to teach us about these important things. I started a separate account that I use for my reselling when I first started early this year, and I signed up for godaddy bookkeeping. For my first year taxes, as long as I have everything going through that account and I have ebay managed payments connected, I should be able to use the godaddy numbers for my taxes without issue right?
Yes, just keep an eye on godaddy to make sure it's not duplicating anything. Sometimes there are little things that need to be fixed.
@@notyourdadscpa I check it weekly, thank you for what you do. I appreciate it
Hi i am new selling on EBAY I am planning to used a spreadsheet for my selling HOW? AND WHAT ? Am I suppose to included on that spreadsheet exactly for the IRS ?? THANK YOU VERY MUCH FOR YOUR GOOD ADVISE !!!
Question, Mark. Do you do consulting? I need to find the best way to set up my books, get someone else to take care of my sales, estimated and end of year taxes. I live in NC. Do I need to find a CPA here...or?
FB Marketplace charged a Buyer Sales Tax, but didn't report it on my Report and didn't issues me a 1099. I've reported the sale in my annual sales tax filing, how do I report it on my individual tax return without a 1099K or Misc? I'm a sole proprietorship. Thanks!
Sales tax should typically not be included as income on your income tax return. And if it's not included as income then it shouldn't be deducted either.
I am hoping you could help me. I havent filed a tax return in years. I have no earned income but just SS. I sell my junk on line. I dont know how this would effect me. I dont see much. Just for this year i have only sold $200 so far. What should i do
Good stuff! So, if I sell my stuff through an ebay seller (business seller), do I have to pay taxes on "my take" after the seller already paid taxes on the sales through their ebay business?
🙏🏼 They should be deducting what they pay you, and then you would pay taxes on that.
The ebay costs are ebay costs, they are not federal and state income taxes.
Does all of this apply if you have a antique booth or would that be different?
What if your 70 and on Social Security and selling online . . . still obligated to report this income?
I need a answer to this too
What's age got to do with it?
@@benijen because he is collecting social security. and yes you still have to report yes. its a damn shame
What if I own a electrical business which is an LLC
I file jointly with my wife and I sell digital products online. How does that all meld together?
The LLC is still filed on a schedule C of the personal joint tax return, and it all ultimately gets combined on your main tax form.
What if you missed reporting your sales from 2020. Are you able to report it during 2021 just so you dont get in trouble?
Would anyone know is this counts as a loss? If in 2020 I bought an iPad Pro for $700 ish. What if in 2021 I sold it on ebay. After ebay took their cut, I get about $450ish. Is this a loss and does it need reporting?
i have a question that i am stuck on. so far this year i have made around 4 thousand dollars which was all sent to my paypal. my question is does the irs care how much money i spent to make that 4 thousand or the only thing they are focused on is taxing me for that 4 thousand? I have never had to fill out one of these forms before and i dont have business or llc or anything like that this is just a little side income
Great information! I'm looking to start reselling on ebay. When it comes to sales tax is it correct that ebay takes care of collecting and paying the taxes?
Yes, in almost every state.
Yes, they calculate the tax. You never see it.
Ebay collects sales taxes on buyer purchase, not federal and state taxes on your income.
in the tax academy, does it specifically go over items that were rebates? I just don't know how to write income and cost when it comes to items that I got rebates back for.
I discuss it more in my ebook, but the simplest way is probably just to reduce your recorded cost by the rebate amount 👍🏼
What about someone like me that’s retired on s.s.i already. Would I have to pay self employment taxes for social security and Medicare I’m already collecting
Unfortunately and ironically yes 🤷🏼♂️
Here's my situation:
I currently live in California, where taxes are incredibly high. I am planning on moving to a new place, perhaps Texas, Florida, or even South America at some point in the next 1-2 years, so I keep telling myself I should WAIT until I live in a lower-tax place to officially launch my online hustles (blog, podcast, and photography print sales).
Am I on the correct line of thinking here? I want to pay as little tax as possible and am semi-flexible on where I live so I want to make the best move for my future as a digital nomad.
Would really appreciate your input :)
Even if you have to pay tax in California, you'll still be left with more money in your pocket then you'll have if you don't start at all. And you'll have that year or two of experience that will help you do even better later on, so my vote would be just to start now 👍🏻
@@notyourdadscpa Thanks so much for the response! If I were to create my LLC now then, is it easy to transfer that to a new place when I do eventually move? I want to remain flexible since I move every couple of years and want to gain the tax benefits of my next location which will have more favorable tax laws
What I might hold off doing if you're in California is creating an LLC. You probably don't need it and they charge you $800 a year in CA
@@notyourdadscpa Gotcha! How would you recommend I get started in that case if I have an umbrella of several projects I'm looking to monetize? I currently have a blog and photography print website, and am starting a podcast soon. How should I round that all up into a personal brand entity without forming an LLC?
HELLO..readysetresell recommended you to watch...2020 was my 1st yr reselling...i'm trying keep it very simple..i wanted to add all my expenses up (cost of all inventory & supplies for the year) then subtract my total sales figure for the year ( or subtract $$ i got from paypal & managed pymts) and the difference will either be my profit or loss ....and report that profit OR loss on my tax return....then start with a clean slate for 2021 ...i can't break every item down individually ( 1300+) but i saved all my receipts for the year where ever i bought items to resell ...will this system work OK ?
No need to track things individually, that should work just fine!
I have a question, I know I complicated things for myself. We own a hat company. On the side I’m a part time reseller. I have started selling our old hat samples on my reseller poshmark and eBay since I have traction with those stores. BUT.. I’m sending the earnings back to the company. Is it possible to just submit proof I did not take those earnings because I don’t want to pay my reseller income taxes on that income I didn’t earn, but according to posh/eBay I did take that $ home. Thanks!
Even if you send those earnings to the company, unless you spend them on something deductible the profit will still be taxable, even if you don't actually take the money out of the company.
HELP HELP HELP……………………someone said if your not registered as a business that there is a 2% floor is that true, does that mean you can only write off up to 2% of expenses? Even if your just side hustling should you register as business?
Typically no need to register anywhere, you are a sole proprietorship by default. That's what the IRS considers you to be.
would i have to pay self employment tax considering i'm 62 and retired and starting social security this month ?
It's sort of counterintuitive, but yes, you'll pay SE tax regardless of your age.
Hi mark, so i have a normal full time job so lets say if i make 15k on ebay (selling off my videogame collection) and make 50k at my full time job i combine the 2 together for a total of 65k, is that what im supposed to do? Please advise
If the 15K is profit after deducting your expenses, then yes. The 15K will be subject to self-employment tax, and the total 65k will be subject to income tax.
@@notyourdadscpa thank you for the reply, however $15k is before taxes and supplies and everything else it probably comes to more like $5k. How am I supposed to prove that or do they take my word for it?
Does Ebay keep track of my profits?
They really only keep track of your sales and ebay related expenses. Things like inventory, office supplies, etc., you need to track on your own to calculate your ultimate profit.
@@notyourdadscpa any suggestions on apps I can use to keep track/organize my profits?
Do I need to pay tax if I sell online classes?
Yes you would report the income as business revenue
So do we report the reselling profit only or the whole sale amount?
You report the total sales and your expenses, which yields the profit, so the profit is what's actually subject to tax.
@@notyourdadscpa ohhh i see... Thank you for that. Information. 🙏🏼💯👍🏼
What if by the end of the year, my "Inventory cost" of 2020 was HIGHER than my Net Profit for the year? Meaning I didn't sell it all. Do sales I sell the next year still go off of the purchase price of the year before? Edit: I got to that segment. :)
There are different ways to account for it, but yes that is the regular way to do it. I'll cover this in another video.