Deduct every damn thing, underwear, cell phone that my boss calls me on. Internet is deducted in full due to the business, any extra items no sold are deducted. How does that answer your question? It doesn't but it gives you a legal avenue to reduce any tax bill you have.
I do not believe the 600$ is for 2021. The tax forms were already printed and ready to send out when he made that statement. It may be valid for 2022. You do get a tax exemption from you state and federal EIN. In my state at least, you can call the state capitol and get a very friendly and very helpful person that is in accounting that is for small businesses. Of the top of my head I fail to recall that dept name. But it (for me) is within the State portal.
I’m not an accountant or financial advisor. This is NOT financial or tax advice… do as you wish with this information. It’s how I understand your circumstances.
You pay taxes on capital gains… if you purchased an item for $600 and sell it for $700 you theoretically should be paying taxes on that net gain of $100. BUT, if you’re a business or sole prop, you should also be factoring the time, services, risks, and resources that you had to take in order to perform this $100 net gain transaction (for example, item has to get to client, ads, your time/salary, office space, vehicle depreciation, storage, etc). Speak with your accountant on selling items you already OWN and had PAID TAXES ON already. I don’t think these items constitute as “items purchased with intended for resale”. Though, with your resale for profit, you may have to write off a lot of expenses to offset your gains.
I do it the Hillary way
Deduct every damn thing, underwear, cell phone that my boss calls me on. Internet is deducted in full due to the business, any extra items no sold are deducted. How does that answer your question? It doesn't but it gives you a legal avenue to reduce any tax bill you have.
I do not believe the 600$ is for 2021. The tax forms were already printed and ready to send out when he made that statement. It may be valid for 2022. You do get a tax exemption from you state and federal EIN. In my state at least, you can call the state capitol and get a very friendly and very helpful person that is in accounting that is for small businesses. Of the top of my head I fail to recall that dept name. But it (for me) is within the State portal.
Just my measly $0.01 Just I feel for you.
I’m not an accountant or financial advisor. This is NOT financial or tax advice… do as you wish with this information. It’s how I understand your circumstances.
You pay taxes on capital gains… if you purchased an item for $600 and sell it for $700 you theoretically should be paying taxes on that net gain of $100. BUT, if you’re a business or sole prop, you should also be factoring the time, services, risks, and resources that you had to take in order to perform this $100 net gain transaction (for example, item has to get to client, ads, your time/salary, office space, vehicle depreciation, storage, etc). Speak with your accountant on selling items you already OWN and had PAID TAXES ON already. I don’t think these items constitute as “items purchased with intended for resale”. Though, with your resale for profit, you may have to write off a lot of expenses to offset your gains.