Thank you so much! As a hobby seller of less than $1k monthly, i haven't been tracking my numbers on 3 platforms, so now I'm scrambling to go back to January! What a pain!
Thank you so much for these resources. This is my first year as a reseller and I have been using the spreadsheet to keep track of my inventory. I am wondering how to account for my existing inventory, purchased in 2023, when I start my 2024 spreadsheet? Do I have to copy it over line by 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.
Just an FYI I downloaded the spreadsheet but when you go to the summary tab by default it's rounding up your total. In my example, the first item I input under "item profit" was $24.50 on the inventory detail tab but was showing $25 in the summary tab. You might want to update the spreadsheet as this would definitely give you false numbers once multiple items are added.
Hey have both of your programs. I had a quick question what happens if you put down starting and ending inventory balance but you use the cash method. I put down a little amount but Id like to correct it for the next year
Some people said when they use cash accting, they’ve been putting 0 on both, but idk how it works if you’ve already put numbers down the first yr, cuz I always wondered the same
I really like the spreadsheet! One question I have is if a buyer pays shipping what column would you list that in, or should I create a column to track that?
It really depends how you want to be able to see it. From a pure accounting standpoint buyer shipping is recorded as part of the overall income, or sometimes people break it out separately as shipping income. The key is to be consistent.
Is it possible to add multiple units of certain items? I am often buying i.e. 200 units of same item which makes me create a new line for each item to get the correct data
Love the looks of this spreadsheet! But how best to handle if 50% of your purchases are bulk purchases- such as bluebox jewlery boxes, jewlery jars, etc. Which can have hundreds of items, and the rest of your inventory purchases are smaller quantities of different items such as clothing or hard goods? I'd love to do individual but hundreds of different postcards or jewlery pieces? I'm not sure what to do?
In that case I would recommend an average cost tracking system rather than individual. I have a spreadsheet for that you can get using the same link, and that I will put up a walk through for soon!
So, is it true as a Sole Proprietor, I can add my cost of goods in the Materials & Supplies section of a Schedule C (Calif.) And if so, how do I buy past the Inventory beginning/ending of year on the online Schedule C or is that even possible? Thank you for your informative videos. 😺👍
thank you for your informative videos. do i need to prove my COGS with receipts? some times garage sales do not provide receipts. what should be done in this instance?
Any thoughts on how to go about dealing with damaged inventory? Let’s say I purchased an item for $10 and didn’t inspect it well. Once I determine the item is not sellable, couldn’t I write it off as a loss? If so, would it count as an expense? I have a very similar spreadsheet but have not found a good way to track items in this scenario. Thank you!
Absolutely, in this case you would just treat it as if you sold it for $0. So you would still put it on the spreadsheet and record the same costs for the cost of goods sold, and the sales price would be zero.
Good morning, I am enjoying all your courses and can't wait to dig into this new spreadsheet! My question is related to reporting LLC income, I would like to retire from my W2 corporate position and I am 63. Understanding that there is a threshold of approx 20k that I can earn without losing part of my SS payments. If I have an LLC am I required to report all income from my business, or only the owner draws? I know I need to do more research, but would like your insights please. Thank you for all you do!
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
What do you do for cost of goods sold when you sell something like personal clothing or collectables you purchased years ago and downsizing personal items? How do you determine a cost?
one question on your spreadsheet. When you calculate COGS (averaging) from feb on are you using a cumulative number or calculating it based on that months inventory purchased COGS?
Hi. I start using your spreadsheet and I love it. I was just wandering if I may be able to add a Tab to it (ex. to record Miles). Also I have a second question, I recorded several item I pickup from my personal stuff. I do not have receipts so I kind of put a purchase price to the item. I have heard other people saying to put zero ($0.00) for the item because I do not have the receipt to prove the purchase of the item. It is correct to make up a purchase price? Thank you very much.
You can definitely add a tab or customize it! As far as adding personal items, I recommend adding the original cost, or at least your best estimate of it. I wouldn't let not having the receipt stop you from taking the deduction. Check out my video on personal items for more detail.
What a great spreadsheet! Is there a different way to record personal collection items you have had for a long time and decide to sell, but you don't have any idea what to put for cost of goods? I have heard some people say the cost of those items is what they're worth today (does that mean the price I sold them at?)
This video may be helpful: ua-cam.com/video/nho3sK-pY0I/v-deo.html You'll either use the original cost OR your best estimate of the wholesale market value if it's lower.
Thanks for providing these spreadsheets. I use them every year and they are great. I'm also a part of your Reseller Tax Academy. How long does it take for the spreadsheet link email to arrive after signing up? It says the link to the spreadsheets are coming my way, but I haven't seen anything since I signed up several days ago. I've tried several times. Checked my spam and trash folders too. Thanks so much!
Any sales tax you pay as part of the purchase of the inventory or shipping you pay to purchase the inventory would typically be included as part of the overall cost of goods sold.
Really like the spreadsheet but I noticed that my expenses for all years show up on the summery page regardless of what date you set on the inventory details page. Is this intentional for some reason?
Hi, I used this in 2023 and am hoping to use it again in 2024. With my existing inventory do I need to copy it over line by line in my 2024 spreadsheet?
It's mainly just for the inventory piece, so you can use it in conjunction with a program like QuickBooks or maybe a simpler bookkeeping program as well. However if you are using the profit and loss tab then it could be most of what is needed for the business portion of your tax return.
As I understand it small businesses with less than $26 million in average gross receipts for the 3 prior tax years can treat the inventory as non-incidental materials and supplies and use the cash method of accounting. This is preferable from a tax perspective as it pulls forward expenses. This is also way simpler since it doesn't require inventorying every single item you purchase for resale. Obviously, you need to have some managerial accounting around the profitability of the items you are selling but why would you ever choose the headache of accrual accounting? If you are reselling a collection of stuff that you have acquired over a period of many years you would be better off treating this as a capital gain, because tax rates on capital are lower than those on labor (gee isn't capitalism great), and subtracting your cost as your basis. Is there something that I am missing?
If the stuff you've been holding was personal then I think that it becomes business inventory at the point at which you listed for sale. Check out my video on personal items, and also check out this video for all the detail on the inventory method: ua-cam.com/video/DqAy_0eb1Wk/v-deo.html
That was my side point. My main point was that if you are picking up items to resell you would never opt for accrual accounting until you were forced to at $26 million in revenue per year. Are you a reseller?@@notyourdadscpa
You can deduct the business portion if you have a business that's reported on Schedule C. If your accountant doesn't break it up separately you may have to just estimate what percentage it makes up of the total return and deduct that percent.
I'm just about to complete my first year of reselling, I didn't do a good job tracking inventory this last year, How will the inventory that I had left at the end of the year factor into this years taxes? @notyourdad'scpa
Thank you so much! As a hobby seller of less than $1k monthly, i haven't been tracking my numbers on 3 platforms, so now I'm scrambling to go back to January! What a pain!
Thank you so much for these resources. This is my first year as a reseller and I have been using the spreadsheet to keep track of my inventory. I am wondering how to account for my existing inventory, purchased in 2023, when I start my 2024 spreadsheet? Do I have to copy it over line by line?
Going to use this sheet for 2024 and beyond!! Thank you!!
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’m so glad I found your channel, so much important information. Thank you so much!!
Just an FYI I downloaded the spreadsheet but when you go to the summary tab by default it's rounding up your total. In my example, the first item I input under "item profit" was $24.50 on the inventory detail tab but was showing $25 in the summary tab. You might want to update the spreadsheet as this would definitely give you false numbers once multiple items are added.
i think thats meant to be that way. thats standard accounting. I just did my taxes and they round up any $ amount if its .50 or more I believe.
Hey have both of your programs. I had a quick question what happens if you put down starting and ending inventory balance but you use the cash method. I put down a little amount but Id like to correct it for the next year
Ive seen this question else where unanswered aswell
Some people said when they use cash accting, they’ve been putting 0 on both, but idk how it works if you’ve already put numbers down the first yr, cuz I always wondered the same
Following @@lilubelle3455
What if you sell multiples of the same item? How would I add that into the spreadsheet?
No spreadsheet…?
Thanks, your awesome! Hope to use this starting next year!
I really like the spreadsheet! One question I have is if a buyer pays shipping what column would you list that in, or should I create a column to track that?
It really depends how you want to be able to see it. From a pure accounting standpoint buyer shipping is recorded as part of the overall income, or sometimes people break it out separately as shipping income. The key is to be consistent.
Is it possible to add multiple units of certain items? I am often buying i.e. 200 units of same item which makes me create a new line for each item to get the correct data
What about tracking the taxes you pd on your items you intend to sell? I know there is some type of refund you get or something for “tax pd @ source”
Love the looks of this spreadsheet! But how best to handle if 50% of your purchases are bulk purchases- such as bluebox jewlery boxes, jewlery jars, etc. Which can have hundreds of items, and the rest of your inventory purchases are smaller quantities of different items such as clothing or hard goods? I'd love to do individual but hundreds of different postcards or jewlery pieces? I'm not sure what to do?
In that case I would recommend an average cost tracking system rather than individual. I have a spreadsheet for that you can get using the same link, and that I will put up a walk through for soon!
@@notyourdadscpa Awesome! Can't wait to watch. 😀
Ty much. Hoping for multiple items for same sku.
So, is it true as a Sole Proprietor, I can add my cost of goods in the Materials & Supplies section of a Schedule C (Calif.) And if so, how do I buy past the Inventory beginning/ending of year on the online Schedule C or is that even possible? Thank you for your informative videos. 😺👍
thank you for your informative videos. do i need to prove my COGS with receipts? some times garage sales do not provide receipts. what should be done in this instance?
Is there an acceptable method in the eyes of the IRS to estimate your ending inventory every year?
I verified my email address, how long will it take for the spreadsheet link to be sent?
Any thoughts on how to go about dealing with damaged inventory? Let’s say I purchased an item for $10 and didn’t inspect it well. Once I determine the item is not sellable, couldn’t I write it off as a loss? If so, would it count as an expense? I have a very similar spreadsheet but have not found a good way to track items in this scenario. Thank you!
Absolutely, in this case you would just treat it as if you sold it for $0. So you would still put it on the spreadsheet and record the same costs for the cost of goods sold, and the sales price would be zero.
Good morning, I am enjoying all your courses and can't wait to dig into this new spreadsheet! My question is related to reporting LLC income, I would like to retire from my W2 corporate position and I am 63. Understanding that there is a threshold of approx 20k that I can earn without losing part of my SS payments. If I have an LLC am I required to report all income from my business, or only the owner draws? I know I need to do more research, but would like your insights please. Thank you for all you do!
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
What do you do for cost of goods sold when you sell something like personal clothing or collectables you purchased years ago and downsizing personal items? How do you determine a cost?
I think this video will help answer that: ua-cam.com/video/nho3sK-pY0I/v-deo.html
one question on your spreadsheet. When you calculate COGS (averaging) from feb on are you using a cumulative number or calculating it based on that months inventory purchased COGS?
Where is spreadsheet link i didn't get it on my email
It may have landed in your Spam box. Please email us at support@notyourdadscpa.com if you still haven't received it.
Hi Mark - thanks for making these! Is your multi platform spreadsheet also updated like his one?
Hi. I start using your spreadsheet and I love it. I was just wandering if I may be able to add a Tab to it (ex. to record Miles). Also I have a second question, I recorded several item I pickup from my personal stuff. I do not have receipts so I kind of put a purchase price to the item. I have heard other people saying to put zero ($0.00) for the item because I do not have the receipt to prove the purchase of the item. It is correct to make up a purchase price? Thank you very much.
I have this exact same question!
You can definitely add a tab or customize it! As far as adding personal items, I recommend adding the original cost, or at least your best estimate of it. I wouldn't let not having the receipt stop you from taking the deduction. Check out my video on personal items for more detail.
Not received any mail
Is the beginning inventory a total of everything I have listed? Also, what about fees from the platform for selling or is that under expenses? Thanks.
I subscribed and confirmed my email but did not get the link for the spreadsheet download. Any help would be appreciated
This may have landed in your Spam box. Please email us at support@notyourdadscpa.com if you still haven't received it.
Thank you so much!
I've put in my email a few different times using different emails but I am still not receiving the link.
Please email us at support@notyourdadscpa.com
What a great spreadsheet! Is there a different way to record personal collection items you have had for a long time and decide to sell, but you don't have any idea what to put for cost of goods? I have heard some people say the cost of those items is what they're worth today (does that mean the price I sold them at?)
This is my problem. I'm mainly selling items gifted to me for resell from my family members attic (items from 1960!). Not sure what to put.
This video may be helpful: ua-cam.com/video/nho3sK-pY0I/v-deo.html
You'll either use the original cost OR your best estimate of the wholesale market value if it's lower.
@@notyourdadscpaWould you adjust the original cost from the 1960s to 2023 dollars?
Thanks for providing these spreadsheets. I use them every year and they are great. I'm also a part of your Reseller Tax Academy. How long does it take for the spreadsheet link email to arrive after signing up? It says the link to the spreadsheets are coming my way, but I haven't seen anything since I signed up several days ago. I've tried several times. Checked my spam and trash folders too. Thanks so much!
Sometimes it goes to spam, but shoot me an email if you haven't received it!
Hey I tried for a couple days to get the spreadsheet but I have not got an email to download it yet
I sell on multiple platforms. Would i need to annotate which platform something sold on or does that not matter?
Thanks for this! When tracking the cogs, should we include tax and shipping in the total purchase price?
Any sales tax you pay as part of the purchase of the inventory or shipping you pay to purchase the inventory would typically be included as part of the overall cost of goods sold.
@@notyourdadscpa thanks again!
Really like the spreadsheet but I noticed that my expenses for all years show up on the summery page regardless of what date you set on the inventory details page. Is this intentional for some reason?
Yes, if you use the expenses tab those only apply to the current year.
Hi, I used this in 2023 and am hoping to use it again in 2024. With my existing inventory do I need to copy it over line by line in my 2024 spreadsheet?
You don't need to copy it over line by line, all you have to do is change the date on the main tab.
@@notyourdadscpahow do I do this for the multiple selling platforms spreadsheet?
ok if i had inventory from years past but dont know cost or even my starting cost of inventory how do i calculate?
Youd just have to make your best estimate in that case.
If I use this spreadsheet, do I need quickbooks? Could I just print out theSummary and hand it to a CPA come tax time?
It's mainly just for the inventory piece, so you can use it in conjunction with a program like QuickBooks or maybe a simpler bookkeeping program as well. However if you are using the profit and loss tab then it could be most of what is needed for the business portion of your tax return.
As I understand it small businesses with less than $26 million in average gross receipts for the 3 prior tax years can treat the inventory as non-incidental materials and supplies and use the cash method of accounting. This is preferable from a tax perspective as it pulls forward expenses. This is also way simpler since it doesn't require inventorying every single item you purchase for resale. Obviously, you need to have some managerial accounting around the profitability of the items you are selling but why would you ever choose the headache of accrual accounting? If you are reselling a collection of stuff that you have acquired over a period of many years you would be better off treating this as a capital gain, because tax rates on capital are lower than those on labor (gee isn't capitalism great), and subtracting your cost as your basis. Is there something that I am missing?
If the stuff you've been holding was personal then I think that it becomes business inventory at the point at which you listed for sale. Check out my video on personal items, and also check out this video for all the detail on the inventory method: ua-cam.com/video/DqAy_0eb1Wk/v-deo.html
That was my side point. My main point was that if you are picking up items to resell you would never opt for accrual accounting until you were forced to at $26 million in revenue per year. Are you a reseller?@@notyourdadscpa
Would inventory lab track the same information accurately?
Yes for Amazon activity 👍🏻
Can you change the date format and currency?
Definitely
if I hire a CPA to do my taxes - how much can I write off ?
You can deduct the business portion if you have a business that's reported on Schedule C. If your accountant doesn't break it up separately you may have to just estimate what percentage it makes up of the total return and deduct that percent.
Do I need to keep receipts for all purchases?
Sometimes it's not their feasible but in theory you should have some type of substantiation for each transaction
Even if you are purchasing from yard sales? I've never been given a receipt
Having the same issue with the link…
UPDATE - Links just received via email. Thanks!
Hello!! 😁
I'm just about to complete my first year of reselling, I didn't do a good job tracking inventory this last year, How will the inventory that I had left at the end of the year factor into this years taxes? @notyourdad'scpa
Thank you so much!