I took the advice from your book and started taking pictures of all of my receipts in Google Drive. What a relief to not keep all those receipts! Thanks!
I figured thats how it may work. Some receipts are different, it would help if the receipt had the last numbers of the card that's used to pay, so you can verify with your monthly transaction statements that it's your purchase especially if the item was stolen, using a card to pay helps validity. So an option is to store your financial statements for validation in case the card's company deletes your records after some time.
What if you bought at garage sales and finally decide to sell your collection? And don't have receipts but remember what you paid for it? Or you buy something for so much and part it out?
I still like to photo copy my receipts and put them in a file folder. Plus I write down in a notebook what the cost was and at what store plus the day. I also write down my sales if I'm at an in person event. I'm still learning but it's always good to learn something new 😉
Thanks for sharing your knowledge with us. I really appreciate all the help you give. Now I've got to go back and catch up on some of your other videos. Again, thanks!
Very good advice. I will scan from now on. Question kinda unrelated; I sell on 2 platforms and will be adding a third. In the past, I’ve put all sells on one spreadsheet, but noted what platform the item sold in. Can I continue to do that, or will I need a spreadsheet for each platform? Keep in mind that I am a very small operation and want as little paperwork as possible. Thank you.
What if you buy something from just another person, not a business. Then you sell it. Are you taxed on the full amount because you don’t have a record? Particularly, buying on Facebook marketplace and later selling on ebay
Also, I was planning on scanning receipts this coming weekend, just assuming it was ok, but I'm glad that you have now verified that for me! I hatteeee paper clutter so much!
Thanks for all of this wonderful information you give out! I have a really fast question. I have downloaded and have started using your Spreadsheet "which looks great BTW" and my question is: If I sell an item on eBay where I actually got more $$ for shipping than what it actually cost me where/how do I add the extra money that I got from shipping? for instance, let's say I got $10 for shipping from the customer but it only cost me $5, on your spreadsheet it just has a column labeled "SHIPPING" do I enter the amount that the customer paid? or what the customer paid minus what I paid? or do I add what they paid to the "purchase price" and then enter the total amount the customer paid for shipping in the "SHIPPING" column? I hope this makes sense. Thanks in advance.
I’ve heard resellers say they use the average per cost system. Buy 6 shirts from all different prices but write it down In The books as a total for cost decided by the six shirts . So they just add six shirts to the spread sheet With one date and just all the same price ?
If the item was bought 20 years ago and there is no receipt, no exact date of purchase, but you find an old add or online article with the MSRP (manufacturer's suggested retail price) of the item, is that usable?
I have a death pile with resale items in the original shopping bag, but missing receipts. When I list them for Ebay sale, I take a picture of the item with the original price tags still on them, and store those as proof of purchase, since I am unsure of the exact dates of purchase.
Unless a person is paying by cash.....if they pay by Credit card or pay app, they should have receipts. Everyone should have a "business" credit card from paypal or elsewhere and all payments made from that credit card.
Thanks for the great tips Mark! How long should you keep your tax returns and support I have paper copies for 7 years back? Going forward I would like to store them electronically. Also for deductions like utilities that do electronic billing, many of those companies only allow access to the e bill for 12 months so I always do paper billing. What method do you suggest on those utility bills?
He never answers that question, did he? Here's what google states: 3 years Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction
Thanks for this video, very helpful! One question can your credit card transaction history be used as documentary evidence of a business expense instead of a paper or digital receipt? Thanks again, keep up the useful content.
Yes. But the chances of the IRS auditing you is slim. Unless they find an irregularity. I'm guessing that they compare your years past reporting and numbers to the current one. For example, if you continually lose money then that might raise flags. Or if all of a sudden you had a big increase in profits.
Thanks for the video just found your channel..had a quick question..I buy 2,000 in inventory in October 2023 I don't sell it until 2024..how is that taxed..since it was an expense in 23..but I don't make profit till next year..do I deduct the 2,000 from my 2023 taxes?do u have any content that breaks that senario down in detail?
Yes check out some of my inventory videos. It depends how you account for your inventory, do you use the accrual method for inventory deducting only when sold? Or the cash method for inventory and deduct when purchased, this one did not used to be allowed.
@@notyourdadscpa I haven't tried either I just started selling in August some of inventory is Lego so I won't sell that till mid next year..but I purchased this year..so just wondering the best way to account that when I file taxes in a couple months .I file a regular W2 since I work full time also..just don't wanna get burned when i do taxes
What do you suggest for garage sale sourcing? This is for ebay. I do a lot of entire town sales I usually keep a running spreadsheet of the town and a breakdown of cost of each item. Garage sales are not going to provide a receipt. So I have the spreadsheet but what about the second part? I also keep a spreadsheet with my sales and include the cost of the item on that spreadsheet along with all the fees etc and download eBay's logs they keep for each ite. Is that enough?
Yes, in that case you just have to create your own record, and that has to suffice. For higher dollar items you could always take a picture, request a signature, but that's usually not necessary.
Thanks so much for this helpful information! I have one question...would a credit card statement be sufficient "Documentary Evidence"? Since it does not provide an itemized list of what was purchased, would the IRS allow it? Thanks again!
It's probably not as good as a receipt, but it's better than nothing. If the transaction on the statement is for more than one item, it would lose some of its strength as documentary evidence. The IRS might still allow it though, they aren't 100% consistent.
What is the cloud?😫😫😫😫😫😫😫😫😫😫 What is the password to my phone? I forgot it years ago and Google wants it to rain on my cloud!😫😫😫😫😫😫😫 Receipts are printed with disappearing ink!😫😫😫😫😫😫😫😫
I took the advice from your book and started taking pictures of all of my receipts in Google Drive. What a relief to not keep all those receipts! Thanks!
Thank you for creating informative but relatively short videos!💕
Love your channel and I have learned so much. I hope I don’t get audited because man I have been doing it wrong for a few years.
Love this channel and how it is directed to resellers! Just subscribed.
Very informative video, thanks.
You are a great resource for information! Thank You
I figured thats how it may work. Some receipts are different, it would help if the receipt had the last numbers of the card that's used to pay, so you can verify with your monthly transaction statements that it's your purchase especially if the item was stolen, using a card to pay helps validity. So an option is to store your financial statements for validation in case the card's company deletes your records after some time.
What if you bought at garage sales and finally decide to sell your collection? And don't have receipts but remember what you paid for it? Or you buy something for so much and part it out?
Great video, thank you!
I still like to photo copy my receipts and put them in a file folder. Plus I write down in a notebook what the cost was and at what store plus the day. I also write down my sales if I'm at an in person event. I'm still learning but it's always good to learn something new 😉
Thanks for sharing your knowledge with us. I really appreciate all the help you give. Now I've got to go back and catch up on some of your other videos. Again, thanks!
Very good advice. I will scan from now on. Question kinda unrelated; I sell on 2 platforms and will be adding a third. In the past, I’ve put all sells on one spreadsheet, but noted what platform the item sold in. Can I continue to do that, or will I need a spreadsheet for each platform? Keep in mind that I am a very small operation and want as little paperwork as possible. Thank you.
What if you buy something from just another person, not a business. Then you sell it. Are you taxed on the full amount because you don’t have a record? Particularly, buying on Facebook marketplace and later selling on ebay
That was helpful to know. Thanks!
Thanks for sharing this info!!
Amazing as always!!!
Thank you
Also, I was planning on scanning receipts this coming weekend, just assuming it was ok, but I'm glad that you have now verified that for me! I hatteeee paper clutter so much!
You have chosen the right path :)
Thanks for all of this wonderful information you give out! I have a really fast question. I have downloaded and have started using your Spreadsheet "which looks great BTW" and my question is: If I sell an item on eBay where I actually got more $$ for shipping than what it actually cost me where/how do I add the extra money that I got from shipping? for instance, let's say I got $10 for shipping from the customer but it only cost me $5, on your spreadsheet it just has a column labeled "SHIPPING" do I enter the amount that the customer paid? or what the customer paid minus what I paid? or do I add what they paid to the "purchase price" and then enter the total amount the customer paid for shipping in the "SHIPPING" column? I hope this makes sense. Thanks in advance.
I’ve heard resellers say they use the average per cost system. Buy 6 shirts from all different prices but write it down In The books as a total for cost decided by the six shirts . So they just add six shirts to the spread sheet With one date and just all the same price ?
If the item was bought 20 years ago and there is no receipt, no exact date of purchase, but you find an old add or online article with the MSRP (manufacturer's suggested retail price) of the item, is that usable?
Another great video!!!!!
I bake Sourdough Bread on the weekend and sell it to friends at a price that just covers my expenses to the penny. Do I need to report it as income?
I have a death pile with resale items in the original shopping bag, but missing receipts. When I list them for Ebay sale, I take a picture of the item with the original price tags still on them, and store those as proof of purchase, since I am unsure of the exact dates of purchase.
That sounds sufficient to me.
I got a quick question - Should you have a separate bank account for your ebay and amazon stores?
Great Video.
Unless a person is paying by cash.....if they pay by Credit card or pay app, they should have receipts. Everyone should have a "business" credit card from paypal or elsewhere and all payments made from that credit card.
Now I feel better
Thanks for the great tips Mark! How long should you keep your tax returns and support I have paper copies for 7 years back? Going forward I would like to store them electronically. Also for deductions like utilities that do electronic billing, many of those companies only allow access to the e bill for 12 months so I always do paper billing. What method do you suggest on those utility bills?
He never answers that question, did he? Here's what google states: 3 years
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction
Thank you!
Is the QuickBooks receipt tracker okay to use?
Thanks for this video, very helpful! One question can your credit card transaction history be used as documentary evidence of a business expense instead of a paper or digital receipt? Thanks again, keep up the useful content.
Yes. But the chances of the IRS auditing you is slim. Unless they find an irregularity. I'm guessing that they compare your years past reporting and numbers to the current one. For example, if you continually lose money then that might raise flags. Or if all of a sudden you had a big increase in profits.
Thanks for the video just found your channel..had a quick question..I buy 2,000 in inventory in October 2023 I don't sell it until 2024..how is that taxed..since it was an expense in 23..but I don't make profit till next year..do I deduct the 2,000 from my 2023 taxes?do u have any content that breaks that senario down in detail?
Yes check out some of my inventory videos. It depends how you account for your inventory, do you use the accrual method for inventory deducting only when sold? Or the cash method for inventory and deduct when purchased, this one did not used to be allowed.
@@notyourdadscpa I haven't tried either I just started selling in August some of inventory is Lego so I won't sell that till mid next year..but I purchased this year..so just wondering the best way to account that when I file taxes in a couple months .I file a regular W2 since I work full time also..just don't wanna get burned when i do taxes
@@notyourdadscpa I read where unsold inventory can actually help because it can help reduce my gross earned income is this correct?
What do you suggest for garage sale sourcing? This is for ebay. I do a lot of entire town sales I usually keep a running spreadsheet of the town and a breakdown of cost of each item. Garage sales are not going to provide a receipt. So I have the spreadsheet but what about the second part? I also keep a spreadsheet with my sales and include the cost of the item on that spreadsheet along with all the fees etc and download eBay's logs they keep for each ite. Is that enough?
Yes, in that case you just have to create your own record, and that has to suffice. For higher dollar items you could always take a picture, request a signature, but that's usually not necessary.
@@notyourdadscpa The problem is I have so many items ready to sell to really start this off my excell spready sheet is like 11k lines of items lol
Thanks so much for this helpful information! I have one question...would a credit card statement be sufficient "Documentary Evidence"? Since it does not provide an itemized list of what was purchased, would the IRS allow it? Thanks again!
It's probably not as good as a receipt, but it's better than nothing. If the transaction on the statement is for more than one item, it would lose some of its strength as documentary evidence. The IRS might still allow it though, they aren't 100% consistent.
How could you record a Yard Sale Purchase?
What is the cloud?😫😫😫😫😫😫😫😫😫😫
What is the password to my phone? I forgot it years ago and Google wants it to rain on my cloud!😫😫😫😫😫😫😫
Receipts are printed with disappearing ink!😫😫😫😫😫😫😫😫
👍
Wait, what? Lol too funny
do you have any recommendations for good scanning apps?
Scannable, scanbot, adobescan are the ones I usually recommend. There are so many!
Lol