Outstanding reselling/flipping business video! It was very well thought out and planned, and loaded with information and explanations that all online sellers need and may not yet have thought of or learned.
Wow, very informative, thank you. I’m new to California. Just moved here from Dallas, TX. Taxes are very different between the 2 states, but no regrets- I love love love Los Angeles. Subscribed and gave a thumbs up, thank you!
Hey Chris, I sell about $3000 a year of stuff that I collected from 30 years ago. What do I put as inventory? I don't want to carry an inventory because it wasn't bought for inventory and I don't know what to do with the lines that ask for a beginning and ending inventory on the schedule C?
I have a question? I been selling on what not a lot but I don’t have a business account yet , what would be some recommendations to start ? Or If you can point me to the right direction to get my stuff in place before I get in trouble with the irs 😂
There’s a statute expiration date, if you are audited the IRS can audit as far back as 3 to 6 years. You should make sure you are saving your personal taxes as far back as that as well, not just for your business.
Okay, with the new $600 1099-K threshold, a lot of people who are selling personal items on eBay will need to now report that income and there are a lot of questions along those lines. In most cases the items are selling for less than their original cost but the seller does not have a record of the purchase price (e.g. old items from the attic). What to do? Also, I'm selling items inherited from the estate of a family member. My guess is that, since I'm selling them at "fair market value" and I inherited them fairly recently then my "basis" cost of these items equals the sell price - so no taxes due (i.e. I sold them for the same value as I acquired them). And, another area of confusion is the vague "occasional yard sale" exception that the IRS casually mentions. Does that apply to eBay sellers of personal items? What are the thresholds (e.g. I can sell 100 items? 1000 items?). Maybe this would be a good topic for another video with maybe a guest who is a tax pro.
I’m glad I’m not the only one wondering this ❤. What about the people that flip things to get out of debt? If they are forced to be seen as a business without the 20k limit seems unfair. I think being forced to be seen as a business at only 600 dollars of a flip is crazy.
@@Kane6676 Congress postponed implementation until next year so you won't get a 2022 1099-K now unless you sold over $20K. Hopefully before the end of 2023 congress will fix this permanently because it is impossible to prove the original cost of old household items. Not sure why you got one in 2021 unless eBay was just being overly cautious.
Would you recommend starting a new ebay store for someone looking to make the jump from selling personal items to ReSelling? I was also thinking about converting my personal account to business and then making a new account for personal since I still want to buy personal items. I have great seller feedback already so I am leaning towards converting but would really like a PRO's opinion.
How do you determine the purchase price for each individual item when you purchase a pallet? Is that calculated differently to determine the profit for each item sold?
I also recommend both courses from Mark Tew. He goes over all the topics I cover in full-length. Mark’s Bookkeeping Course: notyourdadscpa.com/bookkeepingforresellers/?ref=https%3A%2F%2Fcourses.notyourdadscpa.com%2Fa%2F2147516933%2FAEzenTiZ Mark’s Accounting Course: notyourdadscpa.com/resellertaxacademy/?ref=https%3A%2F%2Fcourses.notyourdadscpa.com%2Fa%2F11371%2FAEzenTiZ
In a given year, how do you account for items in your listed inventory and items yet to be listed? Does the money spent on all inventory items get subtracted from your sales income?
what if i only re-sell in person at flea markets? all my money comes from in person transactions.. i have a re sellers permit, what if i just didn't report anything? as most of my money comes in cash....
So I heard you mention that you estimate your income at $2 per sale coming up to $100,000 per year? With sales, wouldn't that number change based on business slow times when items are not in demand? Or is that when you do business loss reporting? Also if you work that business alone and do not have other employees, do you also get paid as an employee too if you are doing both the business labor as a worker in the business and also all the inventory and book keeping etc as the business owner, so wouldn't you get 2 incomes coming in???😳
A hobby is something done for fun. You don't get to write off a $5,000 oven to bake and sell 25 cakes. The government isn't going to buy your oven They will buy part of your oven if you bake and sell 2500 cakes and earn a profit, and PAY TAXES. The should've been collecting taxes all along. I'd say a CPA would do your taxes for $200 to $500 depending on how complex you are. Cost basis is zero if you don't have receipts.
Yes for sure! Any driving you do for your business is deductible as long as you keep a log of where you traveled, when you traveled, and how many miles you traveled. For me, I keep a spreadsheet that I’ll put down the date, location, and distance I traveled anytime I go sourcing or to the post office.
? eBay sole proprietor this year with ss# for eBay can I switch to llc or s- corp and keep my same eBay store at the beginning of next year .( just switch my tax id with eBay) ?
QUESTION: I have a friend who wants me to sell some old nikes for him.. A. Should I set up an LLC for approximately 200+ sneakers he's dropping off? B. What kind of split should I take? My friend's basically supplying all the inventory, but I'm doing the marketing/reselling (via instagram) and probably getting hit with all the tax implications. He deserves the majority of the profits, but I don't want to end up taking a loss, due to PayPal, etc. seeing my account receive all the profits (even though I would probably pay out my friend in cash) . Thanks for the informative video!
Been using Mark for years and currently hired him as my book keeper. Solid Guy; already saved me 1000s in taxes.
Thank you for taking the time to make this video and for answering even the more basic questions. People have to start somewhere!
Outstanding reselling/flipping business video! It was very well thought out and planned, and loaded with information and explanations that all online sellers need and may not yet have thought of or learned.
My accountant said filing as an s-Corp for taxes makes the most sense and gives the most tax benefit when income is over $25k - $35k.
I am new to reselling. Can't find one receipt so this was helpful
That Cooperstown jersey brings me back to the good days
Wow, very informative, thank you. I’m new to California. Just moved here from Dallas, TX. Taxes are very different between the 2 states, but no regrets- I love love love Los Angeles. Subscribed and gave a thumbs up, thank you!
Great video. Sound was great on this one! Thank you!
Make sure you keep track of all your transaction and have your bookkeeper pull all your financial statements
Isn't there a lot of accountant crooks out there who could be stealing your profits behind your back?
Great video! Thank you for taking the time to make. It cleared up some things for me.
Subbed! Tysm 🙏🏼 Great info, well spoken. Learned alot.
really like hearing You.
thank you for the the info helped me out a bit
Can you make a video on shipping? What to charge, which packaging is best to ship in.
Hey Chris, I sell about $3000 a year of stuff that I collected from 30 years ago. What do I put as inventory? I don't want to carry an inventory because it wasn't bought for inventory and I don't know what to do with the lines that ask for a beginning and ending inventory on the schedule C?
I have a question? I been selling on what not a lot but I don’t have a business account yet , what would be some recommendations to start ? Or
If you can point me to the right direction to get my stuff in place before I get in trouble with the irs 😂
Sounds like a new gig might be doing taxes, instead of running around re-selling. The IRS could go back seven years? They have 50,000 new agents?
There’s a statute expiration date, if you are audited the IRS can audit as far back as 3 to 6 years. You should make sure you are saving your personal taxes as far back as that as well, not just for your business.
I hire for my personal life. I’d definitely would hire a CPA if I were to start a reselling business.
Okay, with the new $600 1099-K threshold, a lot of people who are selling personal items on eBay will need to now report that income and there are a lot of questions along those lines. In most cases the items are selling for less than their original cost but the seller does not have a record of the purchase price (e.g. old items from the attic). What to do? Also, I'm selling items inherited from the estate of a family member. My guess is that, since I'm selling them at "fair market value" and I inherited them fairly recently then my "basis" cost of these items equals the sell price - so no taxes due (i.e. I sold them for the same value as I acquired them). And, another area of confusion is the vague "occasional yard sale" exception that the IRS casually mentions. Does that apply to eBay sellers of personal items? What are the thresholds (e.g. I can sell 100 items? 1000 items?). Maybe this would be a good topic for another video with maybe a guest who is a tax pro.
I’m glad I’m not the only one wondering this ❤. What about the people that flip things to get out of debt? If they are forced to be seen as a business without the 20k limit seems unfair. I think being forced to be seen as a business at only 600 dollars of a flip is crazy.
So eBay told me this year I didn’t qualify for a 1099. I sold less in 2021 and got a 1099. I’m confused
@@Kane6676 Congress postponed implementation until next year so you won't get a 2022 1099-K now unless you sold over $20K. Hopefully before the end of 2023 congress will fix this permanently because it is impossible to prove the original cost of old household items. Not sure why you got one in 2021 unless eBay was just being overly cautious.
Would you recommend starting a new ebay store for someone looking to make the jump from selling personal items to ReSelling? I was also thinking about converting my personal account to business and then making a new account for personal since I still want to buy personal items. I have great seller feedback already so I am leaning towards converting but would really like a PRO's opinion.
How do you determine the purchase price for each individual item when you purchase a pallet? Is that calculated differently to determine the profit for each item sold?
I also recommend both courses from Mark Tew. He goes over all the topics I cover in full-length.
Mark’s Bookkeeping Course: notyourdadscpa.com/bookkeepingforresellers/?ref=https%3A%2F%2Fcourses.notyourdadscpa.com%2Fa%2F2147516933%2FAEzenTiZ
Mark’s Accounting Course: notyourdadscpa.com/resellertaxacademy/?ref=https%3A%2F%2Fcourses.notyourdadscpa.com%2Fa%2F11371%2FAEzenTiZ
In a given year, how do you account for items in your listed inventory and items yet to be listed? Does the money spent on all inventory items get subtracted from your sales income?
what if i only re-sell in person at flea markets? all my money comes from in person transactions.. i have a re sellers permit, what if i just didn't report anything? as most of my money comes in cash....
Accountants build upon Bookkeepers to help you maximize
So I heard you mention that you estimate your income at $2 per sale coming up to $100,000 per year? With sales, wouldn't that number change based on business slow times when items are not in demand? Or is that when you do business loss reporting? Also if you work that business alone and do not have other employees, do you also get paid as an employee too if you are doing both the business labor as a worker in the business and also all the inventory and book keeping etc as the business owner, so wouldn't you get 2 incomes coming in???😳
That’s what my salary is based on, the dispersement at the end of the year is the difference
A hobby is something done for fun. You don't get to write off a $5,000 oven to bake and sell 25 cakes. The government isn't going to buy your oven They will buy part of your oven if you bake and sell 2500 cakes and earn a profit, and PAY TAXES. The should've been collecting taxes all along. I'd say a CPA would do your taxes for $200 to $500 depending on how complex you are. Cost basis is zero if you don't have receipts.
Great video
will they ask what i am selling?
Keep good record
Awesome video
Do I have to pay taxes on my profit if I make less than the minimum taxable income? I am a student just doing eBay on the side
Is your mileage let's say driving from home to yard sales, thrift stores or post office to ship merchandise deductible?
Yes for sure! Any driving you do for your business is deductible as long as you keep a log of where you traveled, when you traveled, and how many miles you traveled. For me, I keep a spreadsheet that I’ll put down the date, location, and distance I traveled anytime I go sourcing or to the post office.
What is most of the money I make is from inventory on last year
Can I write off Refunds to customers?? And How?
? eBay sole proprietor this year with ss# for eBay can I switch to llc or s- corp and keep my same eBay store at the beginning of next year .( just switch my tax id with eBay) ?
You can do 10 listings an hour and the same takes me a whole week. Yikes to me.
If you do ebay and etsy and redbubble, do you need to make three separate bank accounts...???
no
Looked for that receipt book on your amazon link, but didn’t see it. Is it still available? Thanks.
I couldn't find it either
QUESTION: I have a friend who wants me to sell some old nikes for him.. A. Should I set up an LLC for approximately 200+ sneakers he's dropping off? B. What kind of split should I take? My friend's basically supplying all the inventory, but I'm doing the marketing/reselling (via instagram) and probably getting hit with all the tax implications. He deserves the majority of the profits, but I don't want to end up taking a loss, due to PayPal, etc. seeing my account receive all the profits (even though I would probably pay out my friend in cash) . Thanks for the informative video!