Most resellers get their start by selling their own personal items online. Are you allowed to deduct those items? And if so, how much is the deduction for your personal stuff? Watch and find out!
Bookkeeping Basics for Resellers course is live! https://notyourdadscpa.com/bookkeepingforresellers/
1) SUBSCRIBE to learn how to get a handle on your business!
https://www.youtube.com/channel/UCV9ns78ekwpojACIGmXXDnw?sub_confirmation=1
2) FREE GUIDE: "Business Starter Guide for Resellers"
https://notyourdadscpa.com/business-starter-guide-for-resellers/
3) COME JOIN THE FREE GROUP!
Accounting for Online Sellers free Facebook group: https://www.facebook.com/groups/accountingforsellers/
4) READY TO DITCH THE TAX ANXIETY?
Reseller Tax Academy: https://www.resellertaxacademy.com/
Reseller Finance eBook: https://notyourdadscpa.com/reseller-finance/
5) LET'S CONNECT!
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Website: https://www.notyourdadscpa.com
6) NEED TAX HELP? I am always ready to help new clients!
https://notyourdadscpa.com/tax-season/
TIMESTAMPS:
0:00 - Introduction
0:19 - Key Question: Accounting for Personal Items in Business
0:36 - Deducting Business Expenses and Cost of Goods Sold
1:08 - Selling Personal Items: Determining Deductions
1:20 - Calculation Method
1:39 - Assigning Cost Value: Lower of Original Cost or Market Value
2:38 - Variability of Market Value
3:04 - Challenges in Finding Market Value for Older/Rare Items
4:09 - Impact of Original Cost vs. Market Value on Deductions
4:32 - Using Best Estimate When Exact Records Are Unavailable
5:27 - Importance of Deducting Legitimate Business Expenses
5:39 - Handling High-Value Items vs. Everyday Goods
6:09 - Exceptions for Electronics and Items with Changing Values
6:37 - Navigating Ambiguity in Tax Situations
7:17 - Outro