Reselling And Taxes With My Reseller Genie Tax Time Is Almost Here

[@commonwealthflipper]

Link here if you are interested code COMMONWEALTH 15% off or COMMONWEALTH50 for 50% the first month through Dec 7th 2023 www.myresellergenie.com/?ref=commonwealthpicker

[@theecommercemom31]

Paul and Faith have THE best customer service out there. You can't go wrong with My Reseller Genie!

[@don951]

Taxes are only stressful if you don't understand. You don't have to be an accountant, but having a basic understanding of how it works goes a long way. The key is having a plan and doing your part to make it work -- it is part of the job after all.

[@commonwealthflipper]

Agreed

[@bennystratton7734]

amen don! what you said is common sense many do not have!

[@MrPaulMorris]

"The key is having a plan" and the plan should include keeping and collating information from day one. It is far more difficult to 'back fill' holes in your records retrospectively and, if you have inadequate information, even a professional advisor won't be able to provide a full solution. Keeping records straight need be no more than a couple of minutes at the end of each day: what did you spend, what did you sell, how many miles (or kilometres) did you travel? Drop any paper receipts in an envelope dated for that month and you're done. Once a month summarise your performance. Done. Even when I was running the business on a much larger scale with offices, staff and all the attendant complications that brings, my business tax recording was a matter of a few minutes a day. I spent considerably more time, although still not a great deal, on the employee related paperwork--payroll (which here in the UK includes deducting tax at source, 'Pay As You Earn' or PAYE means the vast majority of employees never need to make a tax return), sick pay, holiday requests etc etc.

[@wcollins4191]

I set down with my tax consultant we set up a system & I been doing Resell for 22 years, it's a pretty simple plan you just have to add the info & I do monthly, quarterly & yearly reports.

[@rachaelwarrington25]

Thank you for having these folks on. Signed up, 2024 an easier year

[@angelvalle7116]

So glad to find this I’ll have to give it a try Thank you.

[@makeyasaywat7516]

The taxes never scared me when starting reselling because I’ve been self employed as a contracted worker for over a decade. Keeping up with expenses, COG, mileage and how much to put back for taxes is something I’ve been doing, it’s just in more volume

[@bennystratton7734]

yes its so simple people make a mountain out of a mole hill with doing self employment tax! the problem is the majority of sellers don't want to do there taxes because they don't feel they should have to pay taxes on there RESELLING earnings its just fact

[@Hoperidgepicker]

Got it and using it! Love it! Thanks Paul & Faith! Blessings!

[@ngaflipper2658]

It's not often that I encounter a fellow Excel geek / lover. I'm gonna have to learn more about MRG.

[@MyResellerGenie]

@ngaflipper2658 haha, it's a special bond!

[@bennystratton7734]

like wise love Excel use for many things including inventory especially barcode items!

[@JohnnyLightningV10]

No way multiple platforms. Ebay awesome might be using.

[@deniseloomis729]

Thank you Kevin. This was so informative.

[@vinyl1Earthlink]

Using the cash method for inventory, you won't really get your true income and you won't know your real position. If you buy a lot in a year, and don't sell much of it, you will understate your real income. Then the next year, you will see you have too much and cut back on sourcing, so you will overstate your income. If you keep growing the business, of course, you will buy more and more each year, and what you are doing is postponing income every year until you reach you maximum feasible size with your business model. I'm surprised the IRS will even accept the cash method for inventory, since it could be use to defer income. I would imagine there must be some limit on the size of businesses that can use it. In any case, if makes more sense to use accrual, since then you're paying taxes on what you really made. This will also tell you how your business is really doing.

[@commonwealthflipper]

The time saved is exponentially worth it in my humble opinion. It is acceptable and many many companies use it.

[@MrPaulMorris]

Interestingly enough, here in the UK HMRC (His Majesty's Revenue and Customs = IRS) has announced just this week that cash accounting will replace accrual from the next tax year as the default method for sole traders and freelancers. I've used cash accounting since I started in 2001 and, while it is true that uneven trading can distort the figures, over time it evens itself out.

[@peddlinpatricks]

I like accrual too. I want to see each item so I know if I should look for that item again or see if it wasn't worth it. I'm a numbers geek though.

[@bennystratton7734]

@@commonwealthflipper this i agree with you on Kevin been using the cash method for inventory expenses for 25 years for your viewers if your looking to grow your business (in inventory size) it allows you to use all the money you spent on inventory purchases for the current year and deduct it in that year... but thing is in the year you actually sell an item from that inventory since you already used that COG in what ever year you used it on your taxes then you cant use it as COG sold in the year it sells. for example say you make $50,000 and you spend $25,000 on inventory in 2023 then say in 2030 you sell an item that you paid $20 in 2023 since you already used that COG in 2023 on your 2023 taxes you cant use it on your 2030 this is the best method if you want to use your PROFIT to build your inventory since it can be written off as a tax deduction in the same year you purchased again i have used this method for 25 years and i have never been audited also your viewers may want to know the way not to be audited is to always show some kind of profit even if it s a few hundred or a few thousand don't do 0 or below or it will trigger a audit guarantee remember on those few hundred or few thousand your only paying 15.3% not very much on a few hundred or a few thousand actually on $600 its only $91.80 in self employment tax owed

[@Kimberkruz92]

I have signed up but haven’t sat down to import my stuff. No lie I feel overwhelmed 😮

[@davidbeard2451]

Great video... extremely helpful

[@TravelingThrifter]

Very cool!!

[@lionheart830]

When you do interviews, your guests need microphones. And please allow guests to complete their sentences.

[@bporters]

I love Kevin, but the Mmhmmm's and Uhhh huhhs constantly hurt my brain and make it hard to pay attention. =(

[@10indians1]

God of selling on e bay

[@Matthewspann]

Interesting discussion and topic. Keep it up!

[@productboy3187]

I'm sure this is a great tool, especially if you are not good with excel spreadsheets (which is what I use). But that's not the elephant in the room - the problem with reselling item's you buy at a yard sale, flea market etc... is that you have no proof of what you actually paid for an item. If you get audited the IRS can ask you to prove what you paid for the items you sold to confirm your actual profit. You will not be able to do that, and if they want to they could hit you with massive fines - I'm not trying to scare everyone, but be aware of the posssibility. Now, I would think the IRS has guidelines, or percentages that they find acceptable (in other words 50% or lower cost of goods sold might be in the range). If your cost of goods sold is say 90% they may think you are trying to hide your profit and audit you. I don't want to call the IRS and ask them that question, but maybe with your connections you could find out (off the record) what should keep you safe.

[@commonwealthflipper]

I’m obviously not an accountant but I can assure you and others that there are legal and easy ways to do this.

[@Kimberkruz92]

I want to hear your opinion on which method to use! I have a death pile that is from the bins! I don’t see how I would use the accrued method.

[@commonwealthflipper]

My opinion doesn’t much matter it’s what fits you but I can say that I use cash

[@peddlinpatricks]

Does it have accrual method where I can track my inventory?

[@commonwealthflipper]

yes.

[@ordiekelleher2641]

Good information 😊

[@vickglampshousvicky]

Ugh, taxes!

[@MicheleBartonThomas]

THANK YOU! So many comments here like it's no big deal and people can't wait to pay them. So sick of the government thieves making everything so complicated to keep everyone down and worried about being compliant with their unlawful BS! Government thieves always wanting more, more, more, off of our backs.

[@PlayRoom44]

So, is there any reason to be buying this if I use the cash method? I’ve been paying for it for a year but I’m using the cash method still. When I asked this on instagram my comment got removed for harassment, which is weird. But I’ve paid 20 bucks a month for a year and just want to know if I’ve waisted 100 dollars or if there is in fact a reason to keep buying this if I use the cash method? Please and thank you. I’m listening to this for the answer. You almost got to it but then skipped it

[@MyResellerGenie]

Hi @PlayRoom44! Yes, many cash inventory users use MRG still. With cash inventory, you still need to track your sales across platforms and business expenses, which you can do all in MRG. Not sure why your comment on IG was removed! We don’t remove questions about our software - perhaps IG flagged it for some reason? We’re happy to answer any and all questions you may have! ☺️

[@onlyluvisreal6691]

How hard is it to get started. I didn't understand what to do. 😢

[@MyResellerGenie]

Some people say that it takes them 10 minutes, for others, it takes longer. It depends on a lot of factors including the size of your business! ☺️ I’m sorry you weren’t sure what to do with setup. We’d love to help you if you decide you’d like to give it a try again! We also have tons of written and video tutorials that walk you through how to use Mrg. Also, we are working on a new feature that will be pushed soon that will make setup even easier! ☺️

[@onlyluvisreal6691]

@@MyResellerGenie how nice of you to reply. I will look again because I need this! Thanks so much!

[@MyResellerGenie]

Sure thing, @@onlyluvisreal6691 !

[@PlayRoom44]

If you’re doing a cash method is this beneficial? Thank you

[@MyResellerGenie]

Yes, because you will still need to file taxes on any income (sales) you made. The amount you may owe will go down if you are tracking your deductions. You can track all of this in MRG, as well as get the reports you need to easily file taxes on your own or to give them to your CPA/accountant if you do it that way. 😊

[@PlayRoom44]

@@MyResellerGenieso, what if, say, I haven’t looked at it once or put any information in it at all?🤣. Is it worth 120 dollars just to download my Poshmark sales at the end of the year to see them in graph form? I mean, I meant to get my shit together this year but I didn’t. And I don’t see myself becoming any better at paperwork next year. Especially since I would have to manually load all my Poshmark stuff. I’m really just throwing my money away at this point if I’m not using it. I think I’ll download my information today then cancel until I figure reselling out a little more

[@commonwealthflipper]

There is certainly more to keeping your records correct than downloading your posh sales and seeing them in a graph. Business Expenses. Cost of goods tracking mileage etc

[@MyResellerGenie]

@@PlayRoom44 Kevin's right about the other elements of running a reselling business -- we mentioned in the interview how there's two big picture reasons to keep your books. One is for tax filing and the other is for running your business. The second one impacts your life in a much bigger way on a daily basis -- if you have a good sense of your numbers throughout the year, it provides you the information you need to run your business and also provides a lot of stress relief.

[@mywrongways13]

Is this a subscription based app?

[@TriggeredAndy]

It is & it seems by the comments it’s expensive

[@MyResellerGenie]

Hi there! Yes it is. We have 3 plans from $9.99/month-$19.99/month. No commitment and you can cancel anytime if it’s not a good fit for you. ☺️

[@MyResellerGenie]

@@TriggeredAndyWe are priced very inexpensively. We have 3 plans ranging from $9.99/month-$19.99/month. ☺️ Feel free to reach out with any questions!

[@mywrongways13]

@MyResellerGenie So, is the customer's accounting information stored on the cloud server?

[@MyResellerGenie]

Yes it is! ☺️

[@angelakmoses]

Is this program integrated with Vendoo?

[@MyResellerGenie]

No, we are not. Happy to answer any other questions you have! ☺️

[@ericnieves1541]

Awesome thanks!! I’m new to reselling and I’m basically focused on Legos for the moment. Not sure what direction I want to go with this and if I want to turn this into a business but I have two questions. Should I, and do I, need and LLC to conduct a reselling business. I would think that I do. And secondly, isn’t there a $600.00 threshold when it comes to informing the IRS? I believe in one of your recent videos you may have stated that the threshold was $5,000.00. That would be amazing because I’m not really looking to start a business. I basically just want to support my Lego hobby and get sets for free by selling other Legos. I’m interested in hearing what you think. Again thank you for having the couple that you interviewed. It was very helpful.

[@commonwealthflipper]

You do not need an LLC. The mandated limit before platforms have to report this year is 5k but you still need to report all income.

[@ericnieves1541]

@@commonwealthflipper Got it. Thank you so much.

[@XanderBroeffle]

My understanding is that the reporting limit is still 20k or 200 transactions for 2023. 2024 will be 5K.

[@luckytreasures8681]

Why not tell us the cost?

[@MyResellerGenie]

We have 3 plans - $9.99/month, $14.99/month, and $19.99/month. ☺️ If you find we are not a good fit, you can cancel anytime.

[@commonwealthflipper]

Just an oversight. I mentioned it in a previous video.