Seriously, Your Last Chance Taxes Crash Course for eBay Sellers – April 4

thanks guys for coming at the last minute we want to welcome you to the last chance to get a tax crash course for ebay sellers sponsored by the top-rated seller webinars our presenter today is priyanka sharma Laura had another engagement she couldn’t make it so we’ve got Priyanka and we know she’s got it covered so we’re happy to have you so welcome housekeeping quickly yes the webinar is being recorded yes you will have a chance to look at this video later if you missed it or want to go back yes you’ll be able to see the slides and if you’re having audio problems as always on the computer try using the call in number you’re having problems with your phone hang up try another line call back in make sure you stay connected to top rated seller webinars at page mage calm forward slash top-rated seller webinars you can sign up for our great newsletter get selling tips more webinar info and advice it’ll also give you the links to watch recordings of our old webinars we want to thank our sponsors because without sponsors there would be no top rated seller webinars we are sponsored by ebay radio where you’ve got the griff live every tuesday and thursday from 11am the 2 p.m. pacific time found at ebay we’re also sponsored by cabbage with a k get your money fast grow your business with cabbage calm we want to make sure you stay connected again in addition to the newsletter we also have a very active growing facebook group you can find that group by searching top rated seller webinars on facebook or going to forward slash groups /t RS webinars we are also active on twitter and you can hashtag hashtag TR SW to participate in the conversation there our sponsors again we’re sponsored by social beacon social makin especially created for marketplace sellers like you and helps you easily promote all your sale items across multiple social networks share your first item in five minutes it’s that simple to set up and it’s free check out social beacon of page mage calm another sponsor is stamps calm the postage in your PC company import your orders from multiple marketplaces and get that feeling also sponsoring today and presenting today is godaddy online bookkeeping you may have known them formally is outright calm which is where you can put your accounting on autopilot understand your sales organize your business and especially focus today on preparing your taxes check out godaddy online bookkeeping still found it out right calm we’re also sponsored by terapeak because tara peekers make more money don’t forget our connector is cat simpson that’s me of that cat calm and karen locker of solutions for e-commerce our next webinar it’s okay to cheat on ebay with amazon that is and that will be presented by me cat simpson on april 23rd you can sign up at page mage calm forward slash top-rated seller webinars now we are ready for the last minute taxes crash course for ebay sellers by priyanka so let’s get started here thank you so much cap for that wonderful introduction and getting all the housekeeping done you’re always amazing thank you and let’s get started so um as I said ever as Kat said this is our one and two of the last minute tax webinars we’re doing we realize here at godaddy online bookkeeping that taxes are a pain and many times people just you know just wait to pull it off it’s like oh let’s do later let’s do it that’s what used to happen to me chill so what we want to do is be here for you as you’re figuring out your taxes last minute and help you get it all done so this is a disclaimer from our lawyers they just made us do it saying you know we’re not tax attorneys basically that’s the TLDR of it then let’s look at what we’re going to discuss today today we’re going to talk about who needs to pay taxes usually my it’s usually everyone then how to fill income tax return the dates and then how to calculate the taxes or hung with things like deductions how do have no your income from ebay 1019 and k expenses and cogs is one you’ll cover as well go over briefly sales tax and use tax but will cover drop shipping and consignment and finally we’ll talk about how godaddy online book-keeping can help so who needs to pay taxes is it a business is it a hobby so key point is it’s a business if you run it with the intention of making a profit and if you’ve been profitable in the three out of five last year’s finally if it’s something you’re depending on the income for a living then it’s definitely a business we always recommend that you can play it safe even if you make one dollar of profit count it as a business and file your taxes the best thing is

you know if you do file this you get a lot of deductions on many things we spend on to me the ebay selling happen so it actually is a good deal also it’s not worth it to have the IRS up on your back because you didn’t file taxes for amen you don’t want the IRS coming after you priyanka they’re asking you to speak a little bit louder they’re having more trouble hearing you sorry about that is it better now oh that’s better yes awesome okay yeah I have a little bit of a sore throat so sorry about that um okay so yeah so the basics on whether it’s a business or a hobby is if you make a profit just file the taxes so now that we decided that we’re all filing the taxes when are they due very soon they’re due in april fifteenth at every year the main forms that you need to think about our excuse me the form 1040 and this includes the schedule see where which is where you report your self employed income and then there’s the self-employment tax that you report through the self schedule s.e so the schedule c is usually the hardest piece for most people and that’s what we’ll be covering mostly here it’s something to keep in mind is estimated taxes estimated taxes is usually a fourth of what your annual income tax would be so that’s usually do four times a year right it’s estimated and quarterly so for 2014 it’s jen it was jan 15 for the last installment of 2013 taxes then it’ll be april 15 jun 16 and September 15 for this year if you owe more than a gray end in your li income tax you should be paying estimated quarterly taxes this is just I know well it makes taxes happen four times a year it actually keeps things simple and also in check because by doing quarterly estimated payments what you’re making sure off is that you don’t have a crazy tax though at the end of the year and have to scramble for money it keeps you aware of where you’re at financially so definitely recommend making sure you’re doing that if your own more than a grand in taxes the one thing to note is just if you’re filing a tax extension it’s do it was in the taxes are due October 15 min that case so those are sort of the dates to keep in mind i’m sure everybody here is well aware of them at this point and it’s all about let’s get the taxes done so let’s move on so what are you taxed on this is the critical piece everybody needs to remember your text on your profit when its profit profit is the money that comes in which is revenue subtract the cogs which is cost of goods sold and also subscribe the expenses excuse me as you see here cogs and expenses are separate we’ll go into detail of how college works in the later part of the presentation but this is the most important thing here as you can see if you have higher expenses and calls that reduces your revenue and accuracy reduces your profit this is where our deductions really help and having documented business expenses really really helps but at the end of the day you’re taxed on your profit deductions and expenses so these are important because when you take a deduction or you reduce your taxable profit so there are many many deductions out there that you might be eligible for everybody’s case is different however some really common ones are which people actually sometimes forget to take or like the home office deduction 9 million people in America are eligible for it guess how many tickets only three million so domi one of the remaining six million if you’re eligible take that deduction then there’s mileage if you travel for work such as going to a store to purchase inventory that’s a business trip so that’s mileage retirement funds if you plan for your future which everybody should it’s again a deduction there’s like legal fees expenses of going into business bad debt business entertainment travel interest new equipment etc etc ironically business software such as godaddy online bookkeeping is also tax exempt so you can take that as a deduction that’s kind of you know the software that keeps on giving kind of in order to learn more about these deductions and what you can be using you can be recommend looking at cliff n echoes book the ebay sellers tax and legal answer book this goes into major detail about all these deductions and can be a great resource so if you have the time you can look into this book I think on an online version is also available for those of you don’t

want to wait for it in the mail because taxes are so close by so the home office deduction as I mentioned it’s very important because many people are eligible and many are not taking it so don’t be one of those people now there’s some good news on the home office deduction a lot of times people didn’t take the deduction because it was so hard you know getting all the paperwork in order because you have to look at all their expenses and check out a measure the part of your room that comes out your home office and it’s a rat Sarah so many people didn’t want to go through the hassle they thought it wasn’t worth it but now the IRS is actually offering you two ways to deduct the Home Office to action versus the standard actual expensive method what this means is that you look at your home all the utilities bills either ran the mortgage everything and you make sure what the full square footage is and then you look at the square footage of your office space let’s say it’s in a guest bedroom and half the room is devoted to the office you measure the square footage and then the percentage of the house that the square footage is that’s that percentage of the expenses towards the house are counted as a deduction so that’s the first sort of more tedious way now they’ve introduced a new flat rate method what this means is you look at the square footage of your house and multiply it by five dollars and then you get your deduction keep in mind the maximum amount here is $1,500 so if the square footage is 300 you’re good but let’s say it’s 400 then you sort of lost some money on the table so it depends knowing that it depends which method is better for you flattery it’s better if it’s straightforward right like you have under 300 square foot and also if the expenses on the change our house are such that five dollars per square foot is reasonable those are the two things to look into right if so go for the flat rate super easy but let’s say your office is bigger the expenses are higher then you want to do the actual expenses method just to make sure you’re not leaving money on the table now now that we’re clear on how to get it done just some key points about the home office deduction are if you’re taking that deduction you need to make sure you that’s a space you use regularly and exclusively now what does that mean well that means that there is a space in your house which is where you have let’s say your desk your cabinets and tylers and you go there regularly just do your work a good way to prove that you regularly and exclusively use the space is to take a picture of it um off your office and use it as a record because if I see an image like the one shown in this presentation it looks like an office I believe right it’s obvious that you can’t use that space for anything else because it’s so professional that’s the kind of thing you need to ensure off so take a picture and make sure it’s a space you use regularly and exclusively an example of what is not regularly and exclusively is let’s say you have a guest bedroom and you spend some time on the bed doing paperwork that’s not regular and exclusive use so that’s a good way to think this through I just want to do a quick sound check and people hear me fine I am NOT hearing your complaints I think that we got the sound good i’m sorry for your sore throat I know that hurts I did have something from the audience to add here number one they want to make sure everyone understands that in addition to the square footage for your desk and your files and stuff you can also claim the square footage you use for storage so if you have a bunch of your ebay inventory stored in a closet and it takes the entire closet that is square footage you can claim if you have inventory stored out in the garage and you it’s only for that space in the garage is only for your ebay inventory they can claim that as part of their office that your understanding to Priyanka yes absolutely okay second question was from Cheryl she was to talk about the extensions that we talked about earlier she remind wants to remind folks that you can place the extension and your taxes aren’t due until October but I mean you’re filing is not due till October but if you owe any taxes you are supposed to pay them by April fifteenth so if you think you owe taxes and you think you owe a thousand dollars then you if you could file that extension you need to go ahead and pay that a thousand dollars on April fifteenth but you don’t have to actually turn the paperwork in till October 15 can you explain that a little bit Priyanka yes absolutely so that’s completely correct if you owe taxes like you’re going to pay money and it’s going to be thousand or more even if you file an extension you need to pay

the money in time it’s more that the paperwork can be done by octave that was all Thank You Cheryl for that way appreciate that yes absolutely all right awesome now I’ll move on to the next deduction we are going to talk about which is the retirement contribution so good news is that the retirement plans aren’t just for big company employees as a self-employed person you have the right to plan for your future and you can defer your profits and taxes until retirement through some programs such as the individual 401k and the SEP IRA obviously highly recommend people plan for their features and look into these because it’s the same thing as being employed by a big company where people plan for the future and invest in the forum and K and IRAs so that’s something you can do and it’s tax-deductible at this point because you’re deferring your profits and taxes until retirement mileage now this is a big one and it’s usually applies to anybody in business unless you focus on life in a basement and online orders and never got so in terms of tracking mileage first of all you get to deduct round trips that are business trips from your place of business or home whatever you want to call it as as the deductions now the key point now is to track that mileage right you want to make sure it’s accurate the many ways to do it what we recommend is actually using an on mobile application to track because you have your phone on you at all times and what that does for you is if you have an app you can just say start trip and then end trip and record as you’re on the go you don’t need to remember to come back home and enjoy it on your desktop the godaddy online bookkeeping app is available for your smartphone and it does mindless tracking its oh this is some good news for you guys by the way it’s available on iPhone and Android okay that was the number one question last time we had this announcement absolutely so it’s a little of both android and iphone so go download it and you can use it for mileage tracking that’s the quick and easy way of doing it the other way to do it is just note things down in a diary or something like that so yeah and so you get round trips now there are two types of deductions that you can take care it’s similar to how you know Home Office has the simple way and the complex way the simple way is 56 and a half cents per mile driven for business this is by the way different from last year when it was 55 and a half miles per month so I know you take that simple deduction or you look at actual legal expenses such as gas maintenance repairs on the percentage of the annual mileage used for business I think again here you need to look at what is worth it for you it might be that you drive a little bit and so the 56 and a half is simple and easy however it could be that your vehicle expenses are a lot and net net it comes down to 56 and a half cents per mile is not accurate affair in that case you want to make sure that you do the actual mileage used business method also if you use the car exclusively for work then it might be better to just deduct the entire expense for the vehicle during using the longer method so again it really depends make sure you don’t lose money on the table but also don’t kill yourself over it my recommendation to people when they ask like oh I’m really stressed out which one should I take is if taxes are really close and you’re worried that it will be a little too hard to do the actual expenses method then at least get the 56 and a half cents per mile so if it’s too hard then get the simple one but if you have the time and energy then of course look at where you’re going to get the most benefit financially okay before we leave the mileage deduction we have a couple of questions and I want to ask something for past people sandy says not everybody owns a car and that is so different for America most of us are you going to carve it she says I don’t own a car so can I can I deduct the cost of my bus passes which I thought was a very interesting question and the answer is yes it just becomes a business expense now the bus pass again if you’re using the best pass for grocery shopping right exactly and so in that case there’s um you should probably do sort of look at the percentage of youth I did not based on that but as a business expense it completely applies okay and the other question I had was I know a lot of folks have not been keeping track of their mileage and I was just having this

conversation with a client the other day is there any way they can prove what mileage they spent and my advice to them and I’m wondering what I want my dear your advice first if I haven’t been keeping track of my mileage but I you know is there any way I can go back and figure out what mileage I did last year um yes so obviously that’s not an ideal scenario but our recommendation would be to make a list of the frequent trips you make or any big ones you know you made write that word for business and look into your accounting to see so for example let’s say you go to Walmart a lot for inventory shopping right and you know you do that so what you can do is look into your bookkeeping and see how many times you have receipts from there that are business once and you know the distance round trip round trip distance so you could do it that way it so that’s what you also have proved right because you have the receipts from the inventory shopping you took that and then if let’s say you also made one big trip to a target about 50 miles away because it’s a really go on and you know you made that trip so then you can sort of calculate used using google maps and you have the receipts from the purchases there so everybody knows you got there and you can do it that way of course it’s not ideal but it’s a good way to patch together things that’s my recommendation at material exactly the same I’m so excited I told her to use Google Maps especially for her regular trips a lot of people don’t realize and hopefully most of you aren’t going to the post office but as an easy example a lot of people go to post office every single day and it may only be a mile to the post office that’s okay but that’s a mile every day so keep track it out awesome any more questions or should we move on yes go ahead I just was trying to get rid of that sound so go right ahead awesome alright so now now into this big topic of cost of goods sold so as we discussed back in the beginning if you see here cost of goods sold is very important why because you deduct it from your revenue in order to get the lowest amount of profit on which you will be paying your taxes so let’s look into that so what is cost of goods sold cost of goods sold is the cost of the products that you made or you purchased to sell online now well the biggest thing to know about cost of goods so is you can only apply them once you’ve already sold the good so we’re going to go into an example here to explain and generally as an online seller the cost of the inventory that you bought is your cost of goods sold now let’s look into an inventory example right key point again you can only deduct what you already sold so let’s say in January 2013 you bought a hundred widgets at 100 at its dollar each so that’s tool cost is hundred dollars right excuse me so in your inventory at this point you have hundred widgets and the expense was the cost of goods as our expenses hundred dollars to acquire those now December 31st hits you sold 75 of those widgets but you still have 25 left so your cost of goods sold will will be the cost of the 75 widgets salt which in this scenario is $75 so your cards become $75 for 2013 and you’re the remaining 25 widgets go and carry over inventory from 2013-2014 and ideally you’ll be selling these 25 widgets in 2014 and the $25 they cost you will be cogs this year so this well this example is trying to illustrate is it doesn’t matter what you bought I less you sold it and so if you sold it in that case if you can make the deduction of the cost of goods that you sold so keep that in mind and that’s really helpful and you’re figuring out answer so now the other topic that’s really important is revenue form 1099 k at this point everyone who should have who should have received a form has probably done it already um the 1099 k is a farm that the paypal will send you to of n to the IRS to report your I ebay revenue so you’re getting the form and the IRS is getting before so you get the form if you met or exceeded twenty thousand or

more in sales and had twenty two hundred items or morsel so if you’re some baller watch seller and you sold four watches for five thousand dollars each you won’t get which makes it twenty thousand dollars in sales you won’t get the farm because you only sold like four watches not 200 so that’s kind of how the form works you already have it if you were suppose to get it the key point here is that it reports gross revenue it’s literally just looking at all the money that came in from the customers and so what you need to make sure are a couple of things one is that you need to make sure that you utilize this form for your benefit which is check the gross revenue numbers that you have in your safe Schedule C and make sure they’re equal to or more than this 1099 gave 10 and the key point here is gross revenue because once you’ve declared the gross revenue you want to make sure you remove the sales tax collected the shipping revenue sales that were returned car and like you need to make sure that you are removing those in the net in net profit and it also doesn’t include any calls expenses deductions obviously so this is very very gross revenue you just need to make sure that it’s equal to a lower than what you report on your 1040 schedule see now as I said reconcile the 1099 k is really important so first thing once you’ve gotten it you want to make sure it’s accurate information so if you look at the numbers and it’s strange still have time contact paypal and ebay right away tell them there’s a mistake and get them to fix it anybody can make a mistake even big companies so that’s that then once you figure that out then you look into your bookkeeping and make sure that the gross revenue is equal to or higher why would it be ever higher it can be higher if you sell on ebay but also let’s say take local orders or sell on another online seller such as Amazon so you obviously need to be higher there or equal to the 1099 k depending on what all the sources of income for you are once you’ve done that the dead 99 k has been very useful to you because you’ve removed a flag that the IRS uses to decide on audits so if the 1099 k is equal to a less than your gross revenue on the schedule see that’s a good thing for the IRS once you’ve done that and now another thing to know is if you’re doing things manually for keeping lies it’s going to be a little hard to make sure that the calculations on your gross revenue are accurate this is very using an online system such as godaddy online bookkeeping is extremely helpful because it’s been populating what your income and expenses well for forever and it tells you auto populated in the schedule see what the gross revenue at seeing is and you can check with the time engine NK minutes to see if that’s accurate or not it’s very easy and fast to do it that way oh yeah yeah so utilize the 1099 k to the best of your advantage it’s actually your friend because it will protect you from audits if you make sure to reconcile it as I said double checking is critical now that we’ve covered a 1099 k and gonna move on okay before I let you move on and get into the other quagmire of Texas can you go back a few more slides back to the cost of goods slide we had a couple questions on cost of goods and says that she’s confused where she can find her end of year cost of goods because she says when she goes to Amazon December 31st she can’t pull up a report for December 31st and I know that’s true because I’m facing that with one of my clients they did not pull a value of one of their inventory on amazon in FBA for december 31st so i don’t see a way for them to do that except to do to their best of their ability try to figure out you know what they had then do you have a better answer for that because if you’re Navy a seller your inventories right in front of you and you should be counting it on December 31st if you’re an FBA seller you should be pulling a report of what’s in the warehouse on December 31st but if they did not do that is there any way they can figure this out sure um obviously not the best case scenario I’m like like the mileage exactly however my recommendation in this scenario would be that look at your bookkeeping records see all of items that you’ve bought right and the inventory you collected and then you

sent off to FBA based on the shipments you mean and then separately look at all the income that’s come in from amazon now if you obviously if you’re using online bookkeeping it makes things easier but if not that then it’ll be a little hard and messy but you look at all the revenue report and all the revenue you’ve made on amazon and see and it tells you what item is what’s the revenue for as well and then do a sort of manual deduction process elf okay i bought 50 items from walmart and sent them all to the FBA and here i’m seeing that I have 20 sold and 30 that means 30 must be left in the bear houses that’s my recommendation what do you think that I think that’s the best you can do really and I keep going back you and I both love cliff and echo the lawyer and I keep going back to his saying with the IRS is like a dog and even a dog knows whether it’s being tripped over or kicked so I think you know doing the best you can and honestly trying to determine what your inventory value was like December 31st is the best they can expect in the future make sure that you have an inventory valuation on December 31st that’s about all I can say about that how about no I feel like Tom Hanks that’s all I’m gonna say about that cliff and it goin tom hanks okay couple other questions on cost of goods a good one from michelle priyanka i buy something to sell but it turns out it doesn’t sell so i donate it where does that expense go i see so that is definitely not a cost of goods sold that one thing is clear Vic if you donated it right and it wasn’t soul you could probably take a charity deduction on that one that one right yes and definitely check your accountant because they differ on whether you can take the deduction for the value of the item it should have sold for or the amount that you pay for it I’ve heard both pieces of advice and since i’m not a cpa i’m not going to say which one is for you are you want to venture a question on that free oka I’m sorry do you want to venture an idea on that whether they should take the deduction based on what the item should have sold for or how much they paid for it um so again our recommendation always when it comes to taxes is being conservative right now right so our recommendation would always be to pay the tab get the deduction on what the item was bought for because it’s going as charity now right and so sure maybe there is a higher value that the good had but it’s going for charity and the safest deduction you can take is just the face value that you paid for it of course talking to an accountant you might figure out a way to do it for the you know actual value for which you would have sold however we would need to work with that accountant on that and also it’s sort of like it’s a little bit more of a flag for the IRS then oh here’s what it was possible it rhymed baloney if you do keep it simple folks i love that advice priyanka okay another question about mileage and cost of goods so if i go to a toys r us for instance to source something but then on the way home I stopped for gallon of milk are those miles still business miles and are deductible um so here’s the question if you’re driving back and right there on the way without changing route there is a you know a walmart form milks that’s that’s on the way so it wouldn’t be an issue however if you’re changing you’re out and adding miles those mouths don’t catch perfect answer love it okay great question from Mary Bennet what about damaged goods i buy this thing for ten dollars to sell and when i go to list it i realize it’s damaged and it’s trash what do i do with that expense oh well ideally you would return okay let’s see my dog ate it okay that’s a better one oh it definitely doesn’t count as cost of goods sold because you didn’t sell the item in terms of it getting damaged it’s you could potentially take and it’s a deduction based on it being you know depreciation one cat I’d actually like to hear your opinion on that there’s there’s usually a place on there for bad debt or things you write off and I have widely interpreted that as items that I you know couldn’t get like customers it didn’t pay that kind of thing that’s another thing you would definitely want to ask a CPA that’s yeah yeah to go for the bad debt scenario well you know customers it can’t pay him a kind of thing and a great comment from sandy she wants to make sure we let people know that although it was supposed to be

mailed out paypal did not in fact may all the 1099s this year so if you didn’t get one in the mail don’t think you’re off the hook you should go into your paypal account to the download section and download that 1099 I did not know that yes thank you so much for that information thanks sandy I don’t know if she didn’t say if it was everyone or some people because I thought I had gotten one but we’ll see anyway if you didn’t get one for paypal go check and make sure you’re not missing it alright I promise I’ll let you get back to where you were now we’re all caught up awesome all right let’s move on to sales tax this has been a pain for many people so here’s something I would like to say upfront before even discussing in detail a lot of questions we’ve had in the past were about how the Marketplace Fairness Act blade into this I’d like to say that that act is not passed yet and it doesn’t blame to this there is nothing to think about like that’s all new stuff for the future and it might pass at minot past but the 10 night of the Marketplace Fairness Act and similar ones are not in effect and so don’t let them confuse you all you need to think about when you think sales stats right this second is about your Nexus Nexus is something that is unrelated to the Marketplace Fairness Act and whatever real talk here it’s been in presence forever it’s not a new thing it’s um it’s been a nexus husband in the laws forever and don’t confuse yourself with the Marketplace Fairness Act to think that it’s new as well having said that now I will go into the discussion so what is Nexus Nexus is wherever you have a physical location now it could be bare you live or your offices that’s definitely but you have nexus in that state if you go to sell at out of state craft shows or you have people who are helping you where they work for you and there’s in some other location that counts so anywhere where your business is operating from isn’t your Nexus state so you got to figure that out you should investigate what States you will count for Nexus right and once you found that out then you gotta register in those states you go and do those the information sites for those states and you read up on the requirements unfortunately every state is different and will have different requirements on the ribs how to set things up how what items are exempt and how to register and collect and remit the taxes so sadly you have to go to state by state and look into it um it’s really important to do just to stay on the right side of the law now let’s say you live in Kansas and that’s where you are selling from then Kansas is the only place you need to worry about however let’s say you are also doing FBA then you would actually have nexus s on the place in every place amazon has over house so we’ll get into consignment on dropship later but that’s kind of how it works in terms of Colette sales tax you should just set it and forget it then it’s amazon they charge you a fee but they collect for you ebay can actually collect for you for free so that’s really awesome so collection wise you can set it up through these services through the online seller you work online platform selling platform that you work with another option some people take it some people don’t is don’t collect it like don’t collect it but break it into the price and play it anyway so that it’s a little challenging to do it that way just because you have to be extremely accurate on the amount that you collect and remit in terms of the percentages so let’s say the sales tax for something is five percent 5.4 percent and you sent in six percent then it counts as you having been fraudulent to the customer so not the best way but it’s an option out there so just collect everything if you’re using an online bookkeeping solution it’s easy to keep track of whatever you collected and then you mark it as a remit when you’ve sent in the payment to that state using the method that they prefer so that’s how sales tax should be done this is generally a bookkeeping a sort of your long bookkeeping thing because you should have been collecting and remitting over the past year if you haven’t done so if and if you haven’t set it up well I me recommend you set it up right for 2014 so there’s another parallel to sales tax which is use tax now what’s you stacked use tax is

basically the opposite of sales tax if you purchase an item in another state and didn’t pay sales tax on it then oops apologies then you would be uol an excise tax called use tax and if it’s a business purchase though then you do not need to pay the use tax so when you buy inventory in another state give the seller your resale certificate and your resale number and that will avoid the use and sales tax for you use tax is usually for personal purchases or like you know if I bought something from some wherever I didn’t need to pay sales tax I should be paying sale stuff you use tax usually the use tax is the same rate as the sales staff because as I said it’s sort of the mirror often all right now to briefly touch upon drop shipping and consignment sales then we’re not going to go into too much detail here however just want to cover it briefly um then you do drop shipping and have a concern or have a consignor you have nexus for sales tax wherever these people are located so for example if you’re in New York excuse me if you’re in New York and you drop ship for a company in Ohio that has physical locations in Ohio and I ova then you pay sales staff New York sales tax when in New York State person buys you pay oh hi Oh sales stats when an Ohio person buys can you pay Iowa sales tax and an Iowa person dies so if someone from California buys you don’t pay that you don’t collect sales tax or pee so that’s something to keep in mind you should make sure if your dropship and your consignment that your contract explicitly lists where the locations or those people are and you need to warn the residents of those states to make sure that they know that sales tax is going to be added to the winning bid or buy it now price that’s sort of something you need to do ebay is very helpful and you need to look into your settings to figure out how to do all that but it’s really important to make sure you’re doing those things there’s a lot of sample forms and stuff that you need and you can look into the Pentacles book for that he also goes into more detail about this topic which I know is a complex form so if you have a lot of like sort of special scenarios and confusions highly recommend you checking out his ebay fellers tax or legal answer book priyanka ana maria has an interesting comment here and it’s similar to this in florida she says in a state of nevada you’re supposed to pay use tax even if an item is used and is in your business not just personal so state laws can be very different on use tax I know in Florida when we owned a business there we had to pay the use tax on the equipment our business every year so we would pay use tax on our computers in 2013 mean and then pay use tax on the same computers in 2014 based on a reduced value of course but every year you were text yeah there’s lots of ways of getting texts from people so a good point from Anna Maria that some of these tax laws in different states are very particular to that state which is why it’s good for you to have a CPA who is experienced in your state absolutely agree and thank you so much Anna Maria state laws change everything many times mmm please do work with a CPA to make sure you’re compliant on all fronts and she had another great idea I knew that the bad debt was part of the issue but there is a place on your form for breakage and Anna Marie says that she deals with a lot of China which of course means a lot of breakage and so she takes a picture of the broken item and then she includes that value in a line item called breakage so that’s how she handles that so for the damaged items that makes a lot of sense I appreciate that absolutely that makes a lot of sense and we also had a question back on mileage if you’re ready to go back that far yet what if we’re on a personal trip we’re going on vacation to see family or something and we on while we’re there we go do some sourcing can we then go back and write off some of the mileage of that trip so if you go on vacation and then you let’s say you’re on vacation you’re visiting cat in Florida and the two of you go sourcing then the trip from Kats house to the location where you buy that would be your business trip but not your trip to Florida darn but you can still come see me when I move back to Florida i’m stuck in arkansas right now but and anna maria makes the point that the description i gave you of the florida use tax is the same in nevada and i find that very interesting because neither florida nor

nevada have state income taxes but they both handle use tax that way so see they’re gonna find a way of getting that out of you right for yanke I think we’re good on that you’re allowed to go back where you were now keep making her I keep making your flip back pages so there we go awesome all right so now that we have gone through all these different scenarios and Bay’s you know to get done with taxes and all that’s required a few you’re like okay dude it’s April what date is it for 10 days 11 days to do taxes how do i do it fast this is where godaddy online bookkeeping can help you so the godaddy online bookkeeping product it’s a book about keeping an accounting tool that you can use it’s 999 a month and what you get is very quick reporting so what you would do is you would actually set up you would connect your bank you’d connect your paypal any other sources and feted card etc and that would give it all the information it needs to auto categorize everything in thumb expands everything into the system and at a glance tell you what the profit is and once you do that it also has tax forms for Mitch are pre-populated so you have you see here there’s a Texas tab then you click on that you go into the schedule c worksheet like you see here and it’s already populated for you so if you want to do the taxes quick and easy this is a great way to do it you will get a year back off information from paypal so you’re good there for banks it kind of depends so usually they give like about three months and then if you ask them they’ll send you a big file of all your data from for the remaining months and you can upload that into the system and it will do its magic of auto categorization of gang so if you want to do taxes fast this is a great tool we recommend you go use it and the way to access it there are a couple ways one is you go into the ebay app store and it’s listed as outright which used to be our old name before godaddy bodice and you can purchase the 999 product there you can all this way it’s easy because you can access it through your you know through your ebay consulate ah another way is to go to karate calm and search for I look for invoicing and bookkeeping in all ballots that way you can go get stuff done for taxes right away really fast I’m happy to answer any questions on set up etc if somebody has any but be recommended for fastball absolutely i can’t recommend it highly enough i think i’ve been using outright since it was in pre-beta and i can’t imagine doing bookkeeping without it i think we’ve caught up to all of our questions so you guys the question was is this the same as outright yes it is as priyanka said it was outright calm with the name of the company and that great big huge company purchased them so it’s now referred to as godaddy online bookkeeping i believe you can still find it out right calm as the web address still priyanka and in the ebay app center it is still showing as outright so that’s where you can find it it’s i can’t imagine doing taxes without it honestly and they’re even getting with the sales tax and the mileage app is getting even more useful again outright calm has a free version but if you want the schedule c worksheet you’re going to need the 995 a month and as priyanka told you that is tax deductible so let uncle say I’m pay for your accountant I kind of like that plan yeah you can buy the paid product on all like everywhere you can that 52 the ebay app store you can buy through all right calm or through godaddy calm ok so this is your last chance you’ve got a tax specialist here and me the mouthpiece so go ahead and ask you ask your last questions before Priyanka has to go and help some more people do their outright accounting if you have any last minute questions now’s the time I think we got them all they’re all sitting there realizing how much work they have to do I think oh man surprise present for him Oh a present we like presents okay tell us about a present yeah I don’t have a sound effects on to talk oh god haha so if you’re looking into doing your bookkeeping which you probably are since you’re on this one and taxes as well as have thoughts about maybe getting your personal branding done such as you know having an email that has your your personal domain such as cat as you know cat Simpson dog there

you go figure hey something like that and would like to get all that stuff we are offering a package deal if you buy one year of godaddy online bookkeeping and you buy one year off website builder business then you can use the promo code ebay radio to get a fifty percent discount Wow the $19 you get one year of bookkeeping you get one year of website builder which basically makes a website for you and you get a domain free and your own email address with agile me okay so a year of outright would cost how much by itself by itself is nineteen ninety nine dollars so if we buy go to go to out purchase one year of outright and one year of website builder business sighs we get both for 119 that’s correct wow so you get a website builder for free for twenty dollars really pretty much does the website builder business come with the hosting is that part of the package yes okay so you’ve got a brand new website with hosting for twenty dollars for a year yeah I like that deal and your own email to go with your domain I like that ebay radio is the key is the promo code and they would get that deal on correct that is absolutely right I like I like your presents Priyanka you have good present alright oh and then oh you know that’s a pun you have good presents PR es en TS and you have good presents pyaari SI forget how to spell it okay all right we do have some last-minute questions from a.m. can we get our cost of goods from our receipts yeah I I’m guessing you’re saying you bought stuff and you have seats for that and that’s would be yes that’s how I would that’s yeah yeah that day sorry go ahead no no no you’re fine debts I think I think we’re on the same page that that’s the basis of cost of goods and there are some other things that you can consider into cost of goods basically it let me see if I get this right Priyanka anything that you have to do or by to get your goods ready to sell its considered cost of goods is that the right definition absolutely a one caveat I would add is gift wrapping is counted only if it’s essential to the product okay so yeah so examples of other things that go in cost of goods i’m thinking if you have to buy envelopes to put them in to sell them what other semi examples have cost of goods fees of any labeling you do or let’s say you spent um let’s say you buy the bob let’s say you like package things together so you buy you know like China and then you also buy sort of folks and knives and together you package them so then the box that you put them in would count and any like let’s say you write a little like manual or whatever about the product that also counts anything that goes into making the product ready let’s say you bought like pretty writing pens to you know that is the daiquiri of the product and anything that adds to the product goes okay excellent ty has a good question maybe this is already answered but how do we address refunds and returns on our taxes where does that get deducted great question time yeah great question and there is a section right after gross receipts as you see actually technologies if you see in the screen that I’m sharing right now it shows the schedule see right the first thing is gross receipts the second is returns and allowances so that’s where and we’ll go awesome okay Danna wants to know if we have a phone number for existing customers needing technical support actually yes oh so you can go to and there’s a phone number for the general like if you just want to talk about any product go to online bookkeeping actually has its own online as well very cool yes let me pull up that number awesome because all of us are like oh I want that number I hope it’s extra hard staff from now till the 15th we just hold on one second absolutely we’ll watch you go live your way that’s what they always tell you not to do in webinars guys we’re going live

I love it okay get last chance guys get your questions in i’m glad you i’m glad that helped you and she says she’s all good now oh goody and if you guys have friends who are still like the rest of us procrastinating we are going to repeat this webinar next friday at the same time so if you have friends or rid our relations or frenemies who are still struggling with taxes and need some help they can get some more help from Priyanka next friday at the same time so friday april eleventh four days before t-day tax due date okay I just need a second right we’re good alright so the number is mm-hmm it’s 480 4804 6-3 4-6 3884 1884 one excellent excellent excellent okay you know for any reason if it’s like you know difficult something happens if the simplest thing is to go to the they’ll connect you to fantastic so you can use the the 800 or whatever number that godaddy has up on their site and ask to be referred to a online bookkeeping specialist or you can dive 480 4638 841 what about the facebook group are they still providing some support through that so we man the facebook group and answer any questions as we can it must not be prompt but you get a result okay so if you don’t need it right away you don’t want to call you can go to and sort search for the group out righteous is the name of the group all right okay I think we’ve got them either they either they’re all stumped or they’re all working on their taxes and ignoring us one or the other so they’re done thank you so much for your time for Janka I know how busy you guys are at godaddy online bookkeeping at this time of year I’m really excited and grateful that you took time out of that that craziness to come help us at the last minute herb does have one last question what about the cost of ruining things at your place as heat I’m sorry costs of running things at your place as heat or energy either the end got left out so I couldn’t decide if it was ruining or running but I think he net running so that would be a home off part of your home office deduction herb I believe Priyanka if you do it the long way yes it’ll go into the utilities and stuff right I mean if you have a separate building you know a building that’s your business then all of those expenses for that building our business if you’re running your business out of your home it’s the same thing if you if ten percent of your square feet is your office then ten percent of your electricity bill is home office deduction that kind of thing I’m there is a simple way of doing it and then there’s the hard way of doing it Fitch’s standard deduction at like five dollars per square foot up to 15,000 1500 or you do the actual method all right herb says that got it that was what anyone to know ok guys see again if we if you’re not done by your taxes next Friday young lady y’all come back and the rest of you’d let your friends know we’ll be back next Friday same time same place sign up at page page calm forward slash top rated seller webinars thanks again Priyanka see you next week thank you I a bye