RKD2313
Newbie
- Dec 5, 2021
- 9
- 2
Just as the title suggests, Im looking for some tax help/info/advice
- Oklahoma Sole Proprietor
- I am registered with the state for a Resale License - Have a Tax ID and EIN #
Tbh the majority of my professional life (35) I just gave my W2 to my parents and they just had mine done when they had theirs done by a family friend who has been doing our taxes for like 25 years. Im pretty ignorant to the subject to say the least. November 2020 I opened a eBay account and shortly after I paid for seller privilege's on my Amazon account I've had open for 10 years or so. May 1st 2021 I quit my Medical job to sell full time on eBay & Amazon. I know a little about the "Home as a workplace" Tax Deductions. Ive been good at keeping receipts. My wife and I have a running spreadsheet thats more or less an expense report where we're keeping track of just my online business' expenses: Supplies, product, taxes I pay on product, gas, shipping, utilities, etc
From what I've gathered prior and during my journey so far is that for the most part the general population dreads tax season and business owners (In this field anyways) look forward to tax season. Since this will be my 1st year filing with my business. Im not sure to be excited or what to expect, so Im just even keeled about it honestly. Im worried that my ignorance about taxes and things pertaining to small businesses arent going to allow me to take full advantage of my situation. I know people lie about certain things, change some numbers here or there to benefit them and I know if you do so within reason the IRS isn't going to notice or care. It would be like getting fined or audited for downloading 5 songs illegally when theres people out there downloading TB's of Copywrited/Intellectual Property on a daily basis -OR- another good example would be Speeding. Everyone is guilty of speeding. You're breaking the law, but if you do it smartly and within reason you wont get in trouble. Im not trying to turn this into a political debate, but we get raped in taxes, so If I fluff a number here and there to get a few hundred back Ill test my luck. Worst case scenario the IRS knocks on my door and Ill play dumb with my folder full of receipts and say "Damn, I thought I had those purchases documented, but I cant seem to find them" . They will see I do keep records + its a petty amount in terms of $$$ and I will simply owe them that. I fine with that repercussion if it comes to it.
With that being said, I dont want to get crazy with any figures. I just want to take advantage, within reason, of my position. Do I show I bought more in product than I actually did? Do I show I paid more in shipping than I actually did? Show more losses (No profit off of sale(s)) than I actually had? A combination of those? Not sure whether to exaggerate more so 1 specific thing or spread it out over everything. Just incase Im not making sense Ill use an example with fake figures to express what Im trying to say differently. From my understanding you take the total SQ FT of your house and then take the SQ FT that your workplace occupies within the total SQ FT of the house. Lets say mine is 20%. Also my understanding, all utilities at the time of filing would approximately get that 20% off. If I paid $1200 on Internet over the course of the year, I would get a deduction (Not sure deduction is the correct term) of $240 | 1200 * 20% = 240 | If I paid $10,500 in mortgage = $2040 ..... So on and so forth for all utilities/payments that apply to my home/work.
Ive rambled on quite a bit, sorry if I said way to much or not enough. Ask me anything or have me elaborate more specifically on something in regards to getting my question(s) answered.
Thanks you to anyone who helps
- Oklahoma Sole Proprietor
- I am registered with the state for a Resale License - Have a Tax ID and EIN #
Tbh the majority of my professional life (35) I just gave my W2 to my parents and they just had mine done when they had theirs done by a family friend who has been doing our taxes for like 25 years. Im pretty ignorant to the subject to say the least. November 2020 I opened a eBay account and shortly after I paid for seller privilege's on my Amazon account I've had open for 10 years or so. May 1st 2021 I quit my Medical job to sell full time on eBay & Amazon. I know a little about the "Home as a workplace" Tax Deductions. Ive been good at keeping receipts. My wife and I have a running spreadsheet thats more or less an expense report where we're keeping track of just my online business' expenses: Supplies, product, taxes I pay on product, gas, shipping, utilities, etc
From what I've gathered prior and during my journey so far is that for the most part the general population dreads tax season and business owners (In this field anyways) look forward to tax season. Since this will be my 1st year filing with my business. Im not sure to be excited or what to expect, so Im just even keeled about it honestly. Im worried that my ignorance about taxes and things pertaining to small businesses arent going to allow me to take full advantage of my situation. I know people lie about certain things, change some numbers here or there to benefit them and I know if you do so within reason the IRS isn't going to notice or care. It would be like getting fined or audited for downloading 5 songs illegally when theres people out there downloading TB's of Copywrited/Intellectual Property on a daily basis -OR- another good example would be Speeding. Everyone is guilty of speeding. You're breaking the law, but if you do it smartly and within reason you wont get in trouble. Im not trying to turn this into a political debate, but we get raped in taxes, so If I fluff a number here and there to get a few hundred back Ill test my luck. Worst case scenario the IRS knocks on my door and Ill play dumb with my folder full of receipts and say "Damn, I thought I had those purchases documented, but I cant seem to find them" . They will see I do keep records + its a petty amount in terms of $$$ and I will simply owe them that. I fine with that repercussion if it comes to it.
With that being said, I dont want to get crazy with any figures. I just want to take advantage, within reason, of my position. Do I show I bought more in product than I actually did? Do I show I paid more in shipping than I actually did? Show more losses (No profit off of sale(s)) than I actually had? A combination of those? Not sure whether to exaggerate more so 1 specific thing or spread it out over everything. Just incase Im not making sense Ill use an example with fake figures to express what Im trying to say differently. From my understanding you take the total SQ FT of your house and then take the SQ FT that your workplace occupies within the total SQ FT of the house. Lets say mine is 20%. Also my understanding, all utilities at the time of filing would approximately get that 20% off. If I paid $1200 on Internet over the course of the year, I would get a deduction (Not sure deduction is the correct term) of $240 | 1200 * 20% = 240 | If I paid $10,500 in mortgage = $2040 ..... So on and so forth for all utilities/payments that apply to my home/work.
Ive rambled on quite a bit, sorry if I said way to much or not enough. Ask me anything or have me elaborate more specifically on something in regards to getting my question(s) answered.
Thanks you to anyone who helps
