EVERY Reseller should know this about their taxes and End of year Accounting

[@RockstarFlipper]

Do you use a Google Sheet, My Reseller Genie or something else?

[@karenyee9812]

My Reseller Genie here. Like them very much.

[@mhz119486]

So if I purchased something in the prior year but sold it in the current year, would that still be in the COGS?

[@cardinalsellingservicesvic9867]

Rent expense, storage or office. Indiana rules count medical insurance as personal draw /income. Insurance. Car expenses, mileage usually is better that paying expense for smaller reseller. Interest expense, depreciation tables for equipment / autos. CPA is my go-to. I do like how easy you make it look. I always feel overwhelmed. QB online user here.

[@itsasimplelife4us]

Great explanation. We have been self-employed for 38 years, so we have a CPA. It's not as complicated as people think. EBay is really helpful with all the reports they peovide.

[@RockstarFlipper]

Yup people get intimidated and it goes to heck, but its honestly easy

[@deanl7085]

Thanks you’re awesome

[@RockstarFlipper]

Thanks for watching!

[@LVGirl4]

This is very helpful. Thank you!!! 😊

[@RockstarFlipper]

Very welcome!!

[@flawedperfextion]

Thanks Casey!!

[@RockstarFlipper]

Thanks for watching and commenting it really means a lot

[@NeekoZyDyl]

Can you make a video about Schedule C? I didn't know I needed this until this year filing my taxes. Not knowing and having to figure it out before the deadline really messed things up for me. Just to give others a heads up.

[@RockstarFlipper]

I have a video for Filing taxes as a self employed business. Also this video pretty Much covers what you need and how to fill it out.

[@leslieelsner6422]

Awesome tutorial thanks Casey! How do you add into the mix here if majority of what you sell is from your own closet items paid for over the years that you don’t have receipts for clothes, shoes, accessories out of your own closet that sold for a ridiculously low fraction of what you once paid for. I would say 95% of what I sold this year fits that category. Thanks again!

[@ganjainurface]

​@@leslieelsner6422 Very good question.

[@DandyBeingTandi]

Did anyone get an answer to that question? I mainly sold items I’ve owned for years (still have items listed as well) and I’m not sure how to handle those!

[@fibersflowersandfinds]

How do you deal with inventory? Especially if you have a death pile of items not yet listed (but know costs/have receipts for all of it,) or items purchased prior to starting your resale business that you are pulling in to sell?

[@RockstarFlipper]

Items you bought before you started you should have the cost for/receipts. If not you cant really claim them as cost of goods sold unless you want to risk it. Items you still have in stock are cost of goods "remaining" it asks that question

[@14spokenwords]

Easy and to the point

[@RockstarFlipper]

Awesome! I'm glad it helps

[@shellyhurd1571]

Very informative and helpful video! Thank you!

[@RockstarFlipper]

Welcome!! thanks for watching im glad it helps

[@mikeimpressionsreviews]

@@RockstarFlipperfor health insurance what advice to get it. $300 a month doesn’t sound as bad for self employed

[@sellsformoola]

Nice job snd explanation for beginners,

[@RockstarFlipper]

Thanks so much!!

[@jochildress5003]

I didn’t see you mention shipping. If I’m including cost plus shipping in my income, then what I spent on shipping should be deductible.

[@RockstarFlipper]

It is of course. if you charge $20 +$9 shipping your total sale is $29 and your shipping label of $9 is your expense

[@themoorishwarrior1606]

@@RockstarFlipper are you talking about shipping if it is you as seller paying for shipping or the buyer ?

[@RockstarFlipper]

@@themoorishwarrior1606 you the seller ALWAYS pay for the label. Always. Doesn’t matter if you do charged or free $29 + free shipping. Buyer pays you $29. You buy the $9 label $20+$9 label cost. Buyer pays you $29. You buy the $9 label

[@campcop9214]

Where does one find the total fees paid? The exact total. The statements show only line by line?

[@RockstarFlipper]

Under payments screen then reports

[@charlesmay3759]

How about your beginning inventory?

[@RockstarFlipper]

If you have that number they will ask. There is a box for it. If your a new sellers it is $0 of course

[@xjtothejenna]

Thanks for the video! I am still very confused how much I should be setting aside for taxes. Some recommend “20%”, is that 20% of gross sales or 20% of your profit after gross sales - expenses? Thank you 🙏🏻

[@RockstarFlipper]

@@xjtothejenna u need a cpa. And asap. There’s no “set amount”. Taxes are based on so many variables no one here or on Facebook can tell you. It’s based on your sales minus cost of Goods IE; your profit. Taxes aren’t on gross. They are on profits. And then profits minus expenses. And it depends on your total income which bracket you fall into.

[@Cwilly315]

If I’m reselling and using platforms like eBay and PayPal G&S. I don’t have an actual LLC can I still do all these things and do deductions?

[@dillonfosa]

How do you handle promoted listings in MRG? Is that just added to the platform fees?

[@RockstarFlipper]

Yes correct

[@innamontano8251]

20 minutes I can’t find this blank sheets. Can you put the link. It’s crazy

[@RockstarFlipper]

It’s in the description box. Literally below the video

[@cris.sandman4599]

In terms of cost of goods do we only write down all the inventory we bought or just what we sold from the inventory?

[@RockstarFlipper]

Depends how you account for Some people do: bought 10 shirts. $2 each. $20. Sold 4 shirts. $8 cogs. $12 still in inventory. Some people (me) do $0 end of year inventory. So I bought 10 shirts. For $2 each. $20. Sold 4 shirts. Assigned $5 to each shirt. Cogs. Other shirts are $0 end of year

[@brian942011]

Quick question, I have 2 nephews and there mother asked if I can claim them. Is that something that is possible since I’m only there uncle. I’m a full time self employed reseller.

[@RockstarFlipper]

You can't claim someone unless you pay and support them legally.. ask a cpa asap

[@gagirlsusieq]

I have several hundred items listed and sell approximately ten items a week - as a person not a business yet. What’s the best way to start this in January considering all the things already purchased and listed?

[@RockstarFlipper]

It depends how you track your inventory. If you know the price of every item you have listed (what you paid) that would be your starting inventory number. say you have 200 items and paid $400 for them. thats your number . Anything new you buy becomes cost of your inventory through the year. I do it differently. I spent $400 on inventory this year...and everything i sold "ate up" that cost. Anything left has $0 cost in it. So this years taxes 2023 that i report in january will say $400 cost of goods sold. $0 starting inventory. next year whatever i spend in 2024 will go on 2025 and so on and so on

[@jf56msk]

What about subscriptions such as pro lister?

[@RockstarFlipper]

Per the video it’s in dues. Any websites you pay for are “dues”.

[@themoorishwarrior1606]

Thanks Sir.

[@RockstarFlipper]

Anytime!

[@JoeyThrax]

I did my taxes with H&R Block last year. The agent charged me quite a bit. Is that tax deductible?

[@RockstarFlipper]

Yup tax prep services are deductible. You can do it online for cheap. I believe its $50 or $100 whichever version you use

[@karenyee9812]

Mileage is only what you drove for business though, right?

[@RockstarFlipper]

Correct. Personal trips don't count. If you do both in one trip, whatever amount the business location was

[@shannongreenlaw88]

If I make only $2500 total my first year of reselling on ebay is it possible to end up not owing any money after putting in my deductions?

[@RockstarFlipper]

VERY POSSIBLE.. $2500 profit is like 20%. $500 in taxabile liability give or take... you can easily get rid of that

[@mesopotamialover905]

@@RockstarFlipper but we still have to report this to tax authorities even if the profit is low?

[@RockstarFlipper]

@@mesopotamialover905 if it’s $1 you have to REPORT it. That doesn’t mean you’ll owe. It means report…..

[@JuanManShow1]

Are taxes for 1099s / Independent Contractors / Sole Propiator due yearly or quartetly? At first I thought it was optional then I read somewhere that after the first year isrecommended to switch and recently I read somewhere that if taxes are not done every quarter after the first year there's a penalty fee when taxes are due if its done yearly? assuming is all separate from the yearly taxes from employee income which I still do have and I know that they are separate regardless, just makes it more confusing since I resell and do doordash/uber and some years I make enough for them to send me a 1099 and some years not.

[@RockstarFlipper]

Federal taxes are suppose to be paid quartery if you owe or expect to owe $1,000+. Otherwise yearly

[@JuanManShow1]

@@RockstarFlipper thanks for the info

[@kamanama3671]

I’ve managed to sell 1 item

[@RockstarFlipper]

You would by law need to report 1 sale on your taxes with its profit if you did it as business

[@jasminecastillo9106]

@@RockstarFlipperwhat if you aren’t a business and just selling things you find at home. (Meaning no recollection of price of item)

[@RockstarFlipper]

@@jasminecastillo9106 personal items don’t have to be tax reported/claimed. But you need prove it if you get audited