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Welcome back to another episode of the Resellers Mindset Podcast.

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My name is Mike, also known as the used book guy on YouTube,

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along with my friend and fellow full-time reseller, Johnny B.

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We help people start and grow their reselling businesses from the ground up.

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We also have a weekly zoom call and private discord for all YouTube members.

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Head on over to youtube.com backslash use book guy to join the channel and gain

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access to the full length podcast zoom call and private discord today.

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Let's get into this week's episode.

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What is up?

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I've already welcomed into another episode.

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Resellers Mindset podcast, Mike alongside Johnny today's special guest,

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Cheryl, the tax superstar out there when it comes to reselling and taxes.

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And personally, I don't think it gets talked about enough.

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So Cheryl, welcome to the show.

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Give us a little bit of an introduction to yourself and we'll kind

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of just take things as they go.

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All right.

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Um, Cheryl Miller, I am an accountant.

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I have been, uh, I've been doing taxes and accounting for over three decades.

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Uh, and it is, you know, it's just, it's my life at this point.

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I just, I ate it up.

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Um, I actually do enjoy it.

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I am not your old foggy accountant, um, type person.

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I want to be real with you.

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I want to meet you where you are and help you get out of that uncomfortable,

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uh, overwhelmed mindset of I hate taxes.

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I hate bookkeeping.

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I hate finances because once you embrace it, then you can truly start building

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your business and building your life until you do that, you're just, um,

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paddling up river.

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How did you decide to like, I mean, do you help people that aren't resellers

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with taxes because everybody, you know, like, oh, you're, you're in a lot of

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the groups, you have your own Facebook group and everything like that is resellers.

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Just kind of like, do you resell it all?

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Is your passion just resellers?

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That's why you decide to help all of us slackers out here.

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They're just out here with a pile of receipts.

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Like what's the story behind helping resellers?

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So I, um, back when COVID hit everything, you know, went to.

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Crap.

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And, um, I started reselling.

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I had been trying to resell before then I started trying to resell in 2019, just

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to get rid of stuff and found out that, um, the brands of clothes that I thought

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were good, brands weren't as good as I thought they were.

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But so, but I got intrigued and I really got into, you know, okay, what can I sell?

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And, you know, I did this thing that everybody did and started selling all

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the things, um, and like actually convinced my husband that it was a thing when I

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sold this stupid little Homer Simpson, um, doll where he was just in his underwear.

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And that's all it was.

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And I sold them for 10 bucks plus shipping.

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And I was like, okay, people really do buy everything.

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Um, but you know, I mean, I, I, I learned I could join some of the groups.

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I didn't, some of them were, were better than others.

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And, um, and it really kind of got back to, you know, everybody starts a business,

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but when you don't know how to market and you don't know how to market yourself,

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it doesn't really go anywhere.

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And so I kind of fell back into doing what I love by becoming a reseller

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and joining in the groups.

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And talking to the people and, um, it all kind of started when I made my workbook

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that, um, you guys know about and because, and I made it because there wasn't anything

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out there that was just solid made by an accountant that understood taxes and made

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it simple.

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Everything was so hard to do and so hard to keep up with it.

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I didn't want to keep up with it.

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And if I didn't want to keep up with it, then, and I liked it.

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I think you're right.

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Like when you think about it, when it comes to taxes, there's so much just like people

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out there that'll just tell you, Oh, go do this, go do that.

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And they really don't have the degree or certifications to, you know, give somebody

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a valid answer.

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And in the world of like YouTube and social media, like anybody can post anything or

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anybody can tell you, Oh yeah, you know, you're a great person.

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You can write that off and like they're completely wrong.

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But the problem is, you know, they don't know no better.

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So people like you are like a beacon of hope almost when it comes to like getting the

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correct real information when it comes to taxes.

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And personally, I don't think taxes are talked about enough in the reselling community.

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So the fact you're even willing to have a YouTube channel, cause like you said, a lot

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of it's like closed door, right?

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You got to go pay 500, a thousand dollars to sit down with an accountant.

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And that's just like the entry fee to kind of get into it.

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But you put a lot of free game out there on YouTube.

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So I guess what's the story behind the YouTube channel?

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You just want to help as many people as you can, or like what's your, you know, play when

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it comes to YouTube, because you're active on YouTube, you know, you do your lives and

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everything like that all the time.

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Yeah.

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I, I started out YouTube is like the biggest tax hack.

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So it's actually started out because it was a huge tax hack and I wanted to move to YouTube.

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I wanted to move it more personal expenses into my business.

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And then I found out that by doing it, it was really advertising for my business.

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So it didn't even matter whether or not I was making money from YouTube itself.

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It was advertising what I do and who I am.

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And it gave me a way to teach people and meet people where they are.

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So you asked earlier if I was only dealing with resellers and initially I was, but I'm

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actively trying to expand the people that I reach.

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That being said, it's still the same level of person.

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I want to reach the, the beginners, maybe the not so beginners that never embrace their

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finances.

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I want to teach people the basics so that when it comes time to hire out, they know

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that the people that they are hiring to are treating them correctly.

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Yeah, that's so important.

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It's not just like you're like selling yourself, right?

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It's like, I'm Cheryl, use me for your taxes, right?

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There's nobody else.

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You're like, okay, here's how you do it.

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Right?

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You have, you know, you're a teacher before you are trying to have somebody hire you to

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do their taxes.

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So they're prepared.

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Hey, fine.

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That's fine.

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You know, you want to have me, you know, sit down with you and go through your taxes.

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That's fine.

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But I want people just to be aware of the basics when it comes to hiring somebody.

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Because yet again, you can hire anybody.

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You don't know what their qualifications are.

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And that's usually the case when it comes to hiring an outside party, right?

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Sure, you can look on Google reviews or something, but you don't get a real true picture.

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And if you just show up and drop off your receipts, you still have no idea what's going

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on behind the scenes.

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So it's like, yeah, it's cool.

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You hired somebody to do it.

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But at the end of the day, you gain no knowledge from the whole process.

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You're just paying somebody to hopefully do it correct for you.

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That what you just said is key.

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Taxes are not done at the time that the tax forms are filled out.

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The taxes are already done at that point.

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You've given the person that's doing your taxes or yourself the information and they're

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plugging in the numbers.

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That's all they're doing is data entry at this point.

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Taxes are done all year.

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You're learning what needs to be deducted, how you can deduct it, what your possible

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deductions are, how you can add things into your life or into your business that will

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save you money and your taxes.

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So that's what I'm ultimately trying to teach is that one, you never just hand over a bag

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of receipts because you're just going to pay a crap ton of money for someone to sit there

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and go through all the things that you should have done.

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And whether it's right or not, you don't know.

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They don't know.

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Nobody knows.

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You're just putting all this in for, they're just putting all this information on the forms.

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And ultimately, when that form gets submitted, when you sign that form or you say, okay,

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yes, I agree with you and let's move forward.

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You're the one that's responsible, not the tax preparer.

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That's a good point.

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I never really thought about that.

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So if I, for example, gave Johnny all my receipts and said, yo, dude, file my taxes and he just

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did it completely wrong and the IRS will come for me and he has no liability, that's what

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you're telling me.

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Yeah.

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I mean, that's a little bit of a scary thought when you think about it, especially if you

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don't know this person or you have any kind of background because, I mean, let's be honest.

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If I was a tax person and somebody showed up with a trash bag full of receipts and said,

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here you go, sure, the money is nice, but I'm going to be a little bit kind of ticked off

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about it and I'm probably not going to put as much care into actually doing things the

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right way because why did Johnny just show up with a trash bag of receipts and nothing's

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organized at all?

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So that's a great point you bring up.

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You're liable at the end of the day.

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It ain't the tax person, regardless of what they do.

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Right.

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And let's just put this out there.

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I will not do those.

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What? My trash bag already mailed it.

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It's already coming to your house.

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It's too late.

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The receipts are on the way.

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That's where it's going.

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Return it.

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It's coming to a box.

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It's in a box.

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I'm not even returning it.

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I'm just going to take it to the dump.

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Set it on fire.

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Never happened.

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I never saw it.

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Bang.

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We're resellers.

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We know stuff gets lost in the mail all the time.

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Never got it.

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Never showed up.

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Never showed up.

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But it says delivered.

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I don't know what you're talking about.

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Return to sender.

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Done.

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So I think one of the most fun parts about business is actually taxes at the end, because

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not only does it help you keep your money, but it can help grow your money as well if

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you do it correctly.

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That's probably the 2.0 lesson that people need to understand is it can grow your money.

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It's not just reducing your expenses.

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So it's very, very important.

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Now, I think what a lot of people get confused on, what types of accounting are available

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to business in general?

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Because you hear terms like CPA, general accountant, and some other fancier ones.

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In reselling and especially type of resellers for Amazon, eBay, what type of accounting

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person would they need?

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OK.

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So let's equate the CPA as the lawyers of the tax world.

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They are the highest level.

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They have the least hands on on the day to day stuff.

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If you hire a CPA, 95% of the time, they are not the ones doing your taxes.

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They're not the ones doing your bookkeeping.

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You're not going to be able to reach them.

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You're going to pay a lot of money for a lot of nothing.

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And I don't mean that negatively across the board because there's some CPAs that are great

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and taxes are their specialty and they're staying smaller on purpose because they have

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a particular clientele that they want to work with.

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It's just not the norm.

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Then you've got people that never sat for the certified public accountant.

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And they can have their masters and they can have a four year degree and just have never

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done that and still have the same training that the CPA does.

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Then there are people like myself.

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I have a two year degree and I crap ton of experience.

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I maintain my education through I'm constantly learning.

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I'm constantly studying the different things that come out from the IRS.

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Now nobody's going to be great at state unless they're in that state.

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But I study federal taxes.

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I study bookkeeping.

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I study how taxes are done and I listen to other people that talk about the different

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ways of strategizing.

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So I'm very much in that world.

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Now there's accountants that have a two year degree that they've gone other directions.

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But I started doing taxes when I was 18 and I've just loved it ever since.

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So after I did get my accounting degree and got into I was doing a lot of corporate and

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manufacturing type accounting at the time.

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But I've always kept my foot in the door with taxes because it was just it's fun.

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Taxes are fun.

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Here's the thing.

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Taxes are the internal revenue code was written for the masses.

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There's the business side and there's the personal side.

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But it was written to encompass all of us.

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And we all come from different walks of life.

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We all have different income levels.

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And this code is like here.

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So we just wind our way through it and find the things that work for us and check the

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buy.

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OK, I like this one and I want this one and I'll take this one.

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00:14:29,000 --> 00:14:30,600
I'm going to do this one.

241
00:14:30,600 --> 00:14:32,600
And we can literally do that.

242
00:14:32,600 --> 00:14:36,080
If we know what we're working with.

243
00:14:36,080 --> 00:14:37,080
Yeah, I agree.

244
00:14:37,080 --> 00:14:41,800
I mean, if you know that taxes aren't daunting when you have the knowledge or some kind of

245
00:14:41,800 --> 00:14:46,040
understanding of exactly how they work and people, you know, you hear it all the time,

246
00:14:46,040 --> 00:14:47,040
right?

247
00:14:47,040 --> 00:14:49,360
You know, just billionaire not pay zero dollars in taxes.

248
00:14:49,360 --> 00:14:53,560
Well, the tax code like you just talked about, I want to be I always tell everybody I'm right

249
00:14:53,560 --> 00:14:56,760
in behind right in line behind, you know, Walmart and Amazon.

250
00:14:56,760 --> 00:14:57,760
I want to pay.

251
00:14:57,760 --> 00:14:58,760
Hey, don't forget about me.

252
00:14:58,760 --> 00:15:00,040
I don't want to pay nothing in taxes either.

253
00:15:00,040 --> 00:15:04,680
And it's like people have this mindset of like, well, you're not paying taxes and that's

254
00:15:04,680 --> 00:15:05,680
like a bad thing.

255
00:15:05,680 --> 00:15:07,960
Well, it's all legitimate like business expenses.

256
00:15:07,960 --> 00:15:11,200
You're taking advantage of the law that is there for everybody.

257
00:15:11,200 --> 00:15:14,760
It's not like because I resell like compared to a normal job.

258
00:15:14,760 --> 00:15:19,920
And I used to think about when I worked at CBS, there was probably so many tax write

259
00:15:19,920 --> 00:15:23,800
offs I never even thought about because you just think, well, I just have this job and

260
00:15:23,800 --> 00:15:24,920
there's really nothing you can do.

261
00:15:24,920 --> 00:15:28,800
And then you switch to resell and all of a sudden you have all these expenses you can

262
00:15:28,800 --> 00:15:29,800
write off.

263
00:15:29,800 --> 00:15:33,400
And it is kind of, you know, eye opening that I probably missed out on thousands of dollars

264
00:15:33,400 --> 00:15:37,960
when I had a normal job because you also have expenses if you work for somebody else when

265
00:15:37,960 --> 00:15:39,320
it comes to taxes.

266
00:15:39,320 --> 00:15:40,320
Right.

267
00:15:40,320 --> 00:15:49,640
See, and that's the key you don't you don't which is why I try to encourage everyone to

268
00:15:49,640 --> 00:15:54,800
and I am really struggling with this term because people seem to think that having a

269
00:15:54,800 --> 00:15:57,360
side hustle is not having a business.

270
00:15:57,360 --> 00:15:58,360
Oh yeah.

271
00:15:58,360 --> 00:16:03,040
I said we're going to die on I'm telling you right now you have a business.

272
00:16:03,040 --> 00:16:04,040
Absolutely.

273
00:16:04,040 --> 00:16:06,880
It is still a business.

274
00:16:06,880 --> 00:16:09,400
You need to run it as a business.

275
00:16:09,400 --> 00:16:10,680
But it is still a business.

276
00:16:10,680 --> 00:16:19,240
So if you're going to work for a right you're going to have a J.O.B. and I equate that to

277
00:16:19,240 --> 00:16:26,960
just you know what most of the dirty cuss words that are out there but worse then have

278
00:16:26,960 --> 00:16:34,860
a business that you can funnel your the things that you love to do through.

279
00:16:34,860 --> 00:16:45,680
So for example when you work for a when you have a job and you get a W2 then everything

280
00:16:45,680 --> 00:16:51,520
that you get the headphones that you're wearing the shirt the chair all this stuff that you

281
00:16:51,520 --> 00:17:00,520
have that you like and that you want to have are you're paying for after tax.

282
00:17:00,520 --> 00:17:02,280
Right.

283
00:17:02,280 --> 00:17:11,080
Now you decide to start this little business over here on eBay and you sell a couple of

284
00:17:11,080 --> 00:17:12,760
things.

285
00:17:12,760 --> 00:17:19,000
Now your cell phone bill that you were paying for after tax.

286
00:17:19,000 --> 00:17:23,760
Now you pay for before tax that Internet that you were paying for after tax.

287
00:17:23,760 --> 00:17:29,560
Now you pay for before tax and for the first five to seven years we're going to be looking

288
00:17:29,560 --> 00:17:36,400
for every exemption we possibly can because if you're still doing that W2 job then you're

289
00:17:36,400 --> 00:17:40,800
paying tax in on the money that you're making from the W2 job.

290
00:17:40,800 --> 00:17:47,040
And if we can reduce your income from the business into the negative then you're going

291
00:17:47,040 --> 00:17:53,960
to reduce what you have earned from the W2 job and get money back from the money that

292
00:17:53,960 --> 00:17:57,200
you paid in on the W2 job.

293
00:17:57,200 --> 00:17:58,520
I've lost so much money.

294
00:17:58,520 --> 00:17:59,520
I'm out of here guys.

295
00:17:59,520 --> 00:18:00,520
I've lost so much money.

296
00:18:00,520 --> 00:18:01,520
It's okay.

297
00:18:01,520 --> 00:18:11,240
We want we want to keep our money so that we can put it back into the economy and stimulate

298
00:18:11,240 --> 00:18:12,680
the economy.

299
00:18:12,680 --> 00:18:16,840
We don't want to give it to the government and let them decide when they're going to

300
00:18:16,840 --> 00:18:19,400
stimulate the economy.

301
00:18:19,400 --> 00:18:27,420
It's our duty to keep as much money in our pocket as possible.

302
00:18:27,420 --> 00:18:33,380
So when we're paying taxes going through the bookkeeping ourselves and Excel or QuickBooks

303
00:18:33,380 --> 00:18:40,440
or whatever tool you want to use, preference, whatever, how often in the frequency should

304
00:18:40,440 --> 00:18:42,800
a person be doing this if they're owning a business?

305
00:18:42,800 --> 00:18:49,000
Should it be a daily routine, a weekly, a monthly or five hours before it's due?

306
00:18:49,000 --> 00:18:53,080
Not the last one.

307
00:18:53,080 --> 00:19:03,120
Depending on the size and complexity of the business, that amount of time can change.

308
00:19:03,120 --> 00:19:10,800
However, for most of the people that I talked to that are resellers, how about all of the

309
00:19:10,800 --> 00:19:17,000
resellers that are single one off people and maybe you maybe even you have a couple of

310
00:19:17,000 --> 00:19:21,000
people that work with you.

311
00:19:21,000 --> 00:19:31,800
Once a month is absolute maximum time, but it's an acceptable time period.

312
00:19:31,800 --> 00:19:37,240
I can do all of my bookkeeping once a month, no problem.

313
00:19:37,240 --> 00:19:38,680
You're not going to forget things.

314
00:19:38,680 --> 00:19:40,800
You're not going to leave expenses on the table.

315
00:19:40,800 --> 00:19:41,800
You're going to remember.

316
00:19:41,800 --> 00:19:46,480
I mean, I don't remember what I did yesterday, but when I sit down to do my books, I remember,

317
00:19:46,480 --> 00:19:48,520
oh, wait, I bought this.

318
00:19:48,520 --> 00:19:49,520
I bought this.

319
00:19:49,520 --> 00:19:52,680
I got this, you know?

320
00:19:52,680 --> 00:19:56,560
But if I wait two months, I'm not going to remember.

321
00:19:56,560 --> 00:19:58,640
No one remembers what they had for breakfast hardly.

322
00:19:58,640 --> 00:20:01,000
So no, it makes sense.

323
00:20:01,000 --> 00:20:07,440
So when trying to, is it better to hire someone or is it better to teach yourself and your

324
00:20:07,440 --> 00:20:13,480
opinion on the tax stuff?

325
00:20:13,480 --> 00:20:16,480
I think you should always have someone in your pocket.

326
00:20:16,480 --> 00:20:17,480
I agree.

327
00:20:17,480 --> 00:20:26,840
So unless you are eat, sleeping and breathing taxes and even bookkeeping, then you should

328
00:20:26,840 --> 00:20:30,120
be working with someone.

329
00:20:30,120 --> 00:20:38,680
Yeah, you're not going to know all of this stuff without studying it.

330
00:20:38,680 --> 00:20:39,680
Absolutely.

331
00:20:39,680 --> 00:20:44,240
And I've done several businesses and I know a thing or two about taxes, but I always go

332
00:20:44,240 --> 00:20:47,280
to an official person who's trained in it because they're up to date on it.

333
00:20:47,280 --> 00:20:48,280
I'm not.

334
00:20:48,280 --> 00:20:49,280
I don't stay up to date.

335
00:20:49,280 --> 00:20:53,960
I just know a thing or two and I've talked with lawyers and all this kind of fun stuff.

336
00:20:53,960 --> 00:20:57,560
But I'm not current with, oh, did you know this tax law change?

337
00:20:57,560 --> 00:20:58,800
You can't do this anymore.

338
00:20:58,800 --> 00:21:01,340
Or you can do this new thing that's really cool.

339
00:21:01,340 --> 00:21:02,640
I'm not up to date on that stuff.

340
00:21:02,640 --> 00:21:03,980
And that's what they're for, in my opinion.

341
00:21:03,980 --> 00:21:04,980
So I agree.

342
00:21:04,980 --> 00:21:05,980
Right.

343
00:21:05,980 --> 00:21:11,760
Like right now we have in legislation, I'm not sure whether President Biden signed it.

344
00:21:11,760 --> 00:21:13,680
I'm not even sure if it passed in Congress.

345
00:21:13,680 --> 00:21:15,880
I haven't checked in the last few days.

346
00:21:15,880 --> 00:21:24,360
But there's a child tax credit that could give everybody with kids an extra $200 per

347
00:21:24,360 --> 00:21:25,480
kid.

348
00:21:25,480 --> 00:21:34,040
They're looking at doing the retroactivating, is that a word, the 179 deduction back to

349
00:21:34,040 --> 00:21:39,520
100% for 2023 through 24 and 25.

350
00:21:39,520 --> 00:21:44,680
So there's, I really want to know what else they've hidden in this particular legislation

351
00:21:44,680 --> 00:21:47,920
because it sounds really good.

352
00:21:47,920 --> 00:21:52,480
But there's some really good things coming through with that that could help a lot of

353
00:21:52,480 --> 00:21:53,480
people.

354
00:21:53,480 --> 00:21:56,960
So yeah, I mean, you have to stay on top of it.

355
00:21:56,960 --> 00:22:02,040
And the thing is, even me staying on top of it, I'm not 100%.

356
00:22:02,040 --> 00:22:04,760
If somebody asks me a question, I got to go dig in.

357
00:22:04,760 --> 00:22:07,720
You know?

358
00:22:07,720 --> 00:22:14,800
So but yet, having someone in your pocket that is trying to stay on top of it and is

359
00:22:14,800 --> 00:22:20,480
willing to talk with you and set aside that time, you're going to be that much better

360
00:22:20,480 --> 00:22:25,520
off on your taxes and within your business than if you don't.

361
00:22:25,520 --> 00:22:26,520
All right.

362
00:22:26,520 --> 00:22:30,080
I got a hot topic, a hot question here for you to answer.

363
00:22:30,080 --> 00:22:33,000
I'm putting you right on the hot seat with this one, okay?

364
00:22:33,000 --> 00:22:39,840
As somebody that has YouTube reselling, I didn't get a 1099 from eBay or Amazon.

365
00:22:39,840 --> 00:22:43,960
I don't have to file taxes because I didn't get a 1099.

366
00:22:43,960 --> 00:22:49,200
I would just like your opinion on exactly how this works and just your overall, like,

367
00:22:49,200 --> 00:22:51,080
I don't know, it's kind of because you hear it a lot.

368
00:22:51,080 --> 00:22:53,680
And let's be, I'm going to be straight up with, I'm going to be straight up here on

369
00:22:53,680 --> 00:22:54,680
this podcast.

370
00:22:54,680 --> 00:22:59,360
I know a lot of y'all out there listening that don't get the 1099, ain't claiming that

371
00:22:59,360 --> 00:23:00,640
money on your taxes.

372
00:23:00,640 --> 00:23:05,440
So I'm going to ask the expert here what your opinion is, what are some risks if you do

373
00:23:05,440 --> 00:23:07,300
it one way or the other?

374
00:23:07,300 --> 00:23:09,240
And yeah, that's like one of the biggest things I always hear.

375
00:23:09,240 --> 00:23:13,440
I didn't get a 1099, so I ain't got to worry about nothing.

376
00:23:13,440 --> 00:23:14,800
So here's the thing.

377
00:23:14,800 --> 00:23:19,400
I'm going to start with the end first.

378
00:23:19,400 --> 00:23:26,280
They keep postponing the 1099, but within the next couple of years, it's going to be

379
00:23:26,280 --> 00:23:31,480
back at the $600 that it's been the whole time that somehow or another the platforms

380
00:23:31,480 --> 00:23:34,680
got away with not having to give you a 1099.

381
00:23:34,680 --> 00:23:38,360
I don't know how they've been getting away with it for all these years.

382
00:23:38,360 --> 00:23:47,620
I'm sure that I heard that eBay is trying to send people to DC to lobby against it,

383
00:23:47,620 --> 00:23:51,200
but they've been doing this the longest, right?

384
00:23:51,200 --> 00:23:54,320
They've been not sending the 1099s the longest.

385
00:23:54,320 --> 00:23:57,160
So yes, they're going to want to do it.

386
00:23:57,160 --> 00:24:02,080
However, their platform is the best out there of all the platforms.

387
00:24:02,080 --> 00:24:06,600
They're showing you the true numbers where nobody else is.

388
00:24:06,600 --> 00:24:13,920
That being said, when those 1099s start rolling in and people start filing their taxes with

389
00:24:13,920 --> 00:24:21,400
those 1099s because they're going to have to, and the IRS is going to look and say,

390
00:24:21,400 --> 00:24:28,480
oh, you just started a business this year, but you're making $200,000 on here.

391
00:24:28,480 --> 00:24:33,280
Yeah, I don't think so.

392
00:24:33,280 --> 00:24:38,520
Audit and then they're going to go back up to 10 years.

393
00:24:38,520 --> 00:24:45,120
And if they find anything within the time period that they go back and audit, they can

394
00:24:45,120 --> 00:24:48,000
go back indefinitely.

395
00:24:48,000 --> 00:24:53,080
So I don't know about you, but I don't want to deal with that.

396
00:24:53,080 --> 00:24:54,080
No.

397
00:24:54,080 --> 00:24:55,080
Yes, you do.

398
00:24:55,080 --> 00:25:02,560
If you have made over $600 gross, gross, then you have to claim it.

399
00:25:02,560 --> 00:25:03,560
Why?

400
00:25:03,560 --> 00:25:10,160
Let's go back to the beginning of the call when I said you want to claim it.

401
00:25:10,160 --> 00:25:16,840
If you claim it, you can claim all the other crap too.

402
00:25:16,840 --> 00:25:22,760
So you just spoke the big evil word everybody in business is afraid of, audit.

403
00:25:22,760 --> 00:25:26,520
What do you do if you get audited and you've been doing your taxes the whole time?

404
00:25:26,520 --> 00:25:28,520
Do you go seek out a professional?

405
00:25:28,520 --> 00:25:29,600
Is it the end of the world?

406
00:25:29,600 --> 00:25:32,000
The sky's falling, you're ruined?

407
00:25:32,000 --> 00:25:33,880
What's the deal when you get audited?

408
00:25:33,880 --> 00:25:38,840
Nowadays, it's just a letter.

409
00:25:38,840 --> 00:25:44,520
It's just a letter and they ask you for certain things and you go find the certain things

410
00:25:44,520 --> 00:25:51,560
and you mail back or you should actually just electronically deposit the things into the

411
00:25:51,560 --> 00:25:54,640
file that they give you.

412
00:25:54,640 --> 00:25:59,960
And I mean, you don't have to actually talk to anybody.

413
00:25:59,960 --> 00:26:02,380
You don't have to actually look at anybody.

414
00:26:02,380 --> 00:26:06,960
You just look at a piece of paper and you look at the computer screen and you put your

415
00:26:06,960 --> 00:26:07,960
stuff in.

416
00:26:07,960 --> 00:26:12,560
So, so long as you've dotted all your I's and you've crossed all your T's, you're going

417
00:26:12,560 --> 00:26:15,200
to be fine.

418
00:26:15,200 --> 00:26:26,800
It's not a scary thing unless you've been trying to say, yeah, I spent all this money,

419
00:26:26,800 --> 00:26:30,960
but I don't have any receipts.

420
00:26:30,960 --> 00:26:37,160
So if you save your receipts, like you're supposed to save your receipts, then you should

421
00:26:37,160 --> 00:26:38,160
be fine.

422
00:26:38,160 --> 00:26:39,160
I got to.

423
00:26:39,160 --> 00:26:40,160
Yeah.

424
00:26:40,160 --> 00:26:42,840
I got a I got a burning topic here on receipts.

425
00:26:42,840 --> 00:26:45,280
So somebody wants I forget what it was.

426
00:26:45,280 --> 00:26:46,280
I don't know.

427
00:26:46,280 --> 00:26:49,880
I was talking to somehow I brought up tax in a YouTube video and that's like, no, never

428
00:26:49,880 --> 00:26:50,880
do that again.

429
00:26:50,880 --> 00:26:59,320
Somebody said that you don't need actual receipts that they can just submit their bank statement

430
00:26:59,320 --> 00:27:06,480
that just shows like, okay, I bought I went shopping at Target and it was a hundred dollars

431
00:27:06,480 --> 00:27:08,360
and they were they were adamant about this.

432
00:27:08,360 --> 00:27:09,360
It wasn't me.

433
00:27:09,360 --> 00:27:10,360
You can't angry at me, Cheryl.

434
00:27:10,360 --> 00:27:14,400
I'm just telling you that these are some of the misconceptions out there that you can

435
00:27:14,400 --> 00:27:19,720
just submit your bank statement that really doesn't have anything itemized or anything

436
00:27:19,720 --> 00:27:21,760
and you can get away with that.

437
00:27:21,760 --> 00:27:32,000
There is actually a social media company that is helping accountants with their social media

438
00:27:32,000 --> 00:27:41,240
and they provided a piece of content that basically said that that these bookkeepers

439
00:27:41,240 --> 00:27:46,640
were putting out and then they were going back into the group going, why am I?

440
00:27:46,640 --> 00:27:49,040
Why are people telling me I can't do this?

441
00:27:49,040 --> 00:27:51,120
It was on your stuff.

442
00:27:51,120 --> 00:27:56,680
I'm like, what kind of bookkeeper account are you that you don't know that I know the internal

443
00:27:56,680 --> 00:28:03,040
revenue code that says it's not good enough to have just a bank statement because the

444
00:28:03,040 --> 00:28:11,120
bank statement does not itemize what you actually spent the money on and the IRS is going to

445
00:28:11,120 --> 00:28:18,160
want to see what you actually spent the money on because they're going to say, oh, well,

446
00:28:18,160 --> 00:28:23,400
you actually only spent five dollars on some pens and the other ninety five dollars was

447
00:28:23,400 --> 00:28:26,020
your groceries.

448
00:28:26,020 --> 00:28:34,640
So we're not doing the ninety five, but we'll give you the five for the pens for your business.

449
00:28:34,640 --> 00:28:37,020
So let's say this.

450
00:28:37,020 --> 00:28:39,800
Let's say in my bookstore, I've sold a book.

451
00:28:39,800 --> 00:28:42,720
Somebody gave me one dollar for it.

452
00:28:42,720 --> 00:28:45,400
Do I report that one dollar because it was cash?

453
00:28:45,400 --> 00:28:51,640
Do I do I or do I or do I do report that one dollar because it was cash?

454
00:28:51,640 --> 00:28:57,920
Because there's an interesting concept if cash was done, you don't have to report it.

455
00:28:57,920 --> 00:29:04,200
So the way that I look at it and obviously this is going to be a moral thing for everyone

456
00:29:04,200 --> 00:29:06,600
because there's no proof.

457
00:29:06,600 --> 00:29:07,600
Right.

458
00:29:07,600 --> 00:29:08,600
Cash changed hands.

459
00:29:08,600 --> 00:29:10,520
There's no way to prove it.

460
00:29:10,520 --> 00:29:18,560
The way that I look at it is I am running a business, so I want everything to be above

461
00:29:18,560 --> 00:29:21,000
board.

462
00:29:21,000 --> 00:29:26,680
So if I'm using Venmo, if I'm using Cash App, if I'm using cash hand to hand, I want to

463
00:29:26,680 --> 00:29:27,680
count it.

464
00:29:27,680 --> 00:29:31,480
But there's another reason I want to count it.

465
00:29:31,480 --> 00:29:42,480
So because we're resellers, we're in a very like this is the best business you want to

466
00:29:42,480 --> 00:29:48,280
be in if you want to get rid of crap in your house.

467
00:29:48,280 --> 00:29:50,520
We go to the thrift stores and we buy something.

468
00:29:50,520 --> 00:29:56,160
Like you might buy a box of books and you're paying like a penny on the on a book or something

469
00:29:56,160 --> 00:29:57,360
like that.

470
00:29:57,360 --> 00:30:02,440
But if you take a book out of your house that you went to the bookstore and actually bought

471
00:30:02,440 --> 00:30:07,600
or you went to Amazon and actually bought, you might have bought it 20 years ago for

472
00:30:07,600 --> 00:30:12,200
50 bucks and you decide to sell it this year.

473
00:30:12,200 --> 00:30:17,160
And now this year it may only be worth a dollar, but you're going to run it through your store

474
00:30:17,160 --> 00:30:24,160
and you're going to put it in your expenses as a book from your home, from your closet,

475
00:30:24,160 --> 00:30:31,360
from your stuff and put the $50 on there and then go ahead and sell it for the dollar.

476
00:30:31,360 --> 00:30:33,480
And if it never sells, okay, fine.

477
00:30:33,480 --> 00:30:36,800
Now you pull it out of your store and you throw it in the trash or you give it back

478
00:30:36,800 --> 00:30:40,120
to you know, you give it to a thrift store.

479
00:30:40,120 --> 00:30:47,440
But everything that you decide in your house that you want to get rid of and I've been

480
00:30:47,440 --> 00:30:54,080
purging some stuff here lately because for whatever reason, this concept did not cross

481
00:30:54,080 --> 00:30:55,080
my mind until recently.

482
00:30:55,080 --> 00:31:02,040
So I've gotten rid of a ton of stuff that I did not run through my business first.

483
00:31:02,040 --> 00:31:08,320
But yeah, if you run it through your business as a yard sale, Facebook marketplace, hand

484
00:31:08,320 --> 00:31:11,400
to hand, whatever, a flea market, it doesn't matter.

485
00:31:11,400 --> 00:31:22,520
If you claim the cash, then it's just part more part of your business.

486
00:31:22,520 --> 00:31:26,360
It's just like eBay and Amazon and all the rest.

487
00:31:26,360 --> 00:31:29,080
So I claim the cash.

488
00:31:29,080 --> 00:31:31,120
Good answer.

489
00:31:31,120 --> 00:31:32,120
I like it.

490
00:31:32,120 --> 00:31:36,840
So you, you know, other people, oh, why do I got to pay taxes on something I already

491
00:31:36,840 --> 00:31:37,840
bought?

492
00:31:37,840 --> 00:31:42,280
That's like the big argument when the whole $600 things come out as, well, I got this

493
00:31:42,280 --> 00:31:46,640
couch that I bought 20 years ago, I don't have a receipt and I sold it and it was over

494
00:31:46,640 --> 00:31:47,960
$600.

495
00:31:47,960 --> 00:31:49,280
And now I got to pay taxes.

496
00:31:49,280 --> 00:31:50,400
Like, how is that fair?

497
00:31:50,400 --> 00:31:54,920
So like, what you're saying here is, okay, maybe you bought a book 10 years ago.

498
00:31:54,920 --> 00:31:58,640
And if you're going to write it off on your taxes, do you still need to have the receipt

499
00:31:58,640 --> 00:32:01,800
from the time of purchase, even though it was 10 years ago?

500
00:32:01,800 --> 00:32:02,800
Nope.

501
00:32:02,800 --> 00:32:04,640
Okay, fair enough.

502
00:32:04,640 --> 00:32:05,640
I was just curious.

503
00:32:05,640 --> 00:32:14,000
No, you don't and that's, that's why we as a re as resellers are in a very unique situation

504
00:32:14,000 --> 00:32:16,080
because no other business can do that.

505
00:32:16,080 --> 00:32:18,200
We get to do it because we're resellers.

506
00:32:18,200 --> 00:32:23,280
I want to talk a little bit about there's like, at least all that I know of, there's

507
00:32:23,280 --> 00:32:26,360
like two different ways to track your inventory.

508
00:32:26,360 --> 00:32:29,760
It's like accrual or cash, right?

509
00:32:29,760 --> 00:32:33,160
Are those the two like that you can either track?

510
00:32:33,160 --> 00:32:35,200
All I know is I do the easy one.

511
00:32:35,200 --> 00:32:37,280
Yeah, the accounting methods.

512
00:32:37,280 --> 00:32:41,440
You kind of want to give a quick little inside look at, you know, each one of those and which

513
00:32:41,440 --> 00:32:45,240
one you think resellers should probably use.

514
00:32:45,240 --> 00:32:46,240
Sure.

515
00:32:46,240 --> 00:32:49,640
Cash, it's simple, it's easy.

516
00:32:49,640 --> 00:32:55,760
And everybody, if they're, if they are claiming that they're doing accrual and they're doing

517
00:32:55,760 --> 00:32:58,520
line by line accounting, they're all doing it wrong anyway.

518
00:32:58,520 --> 00:33:02,080
So just go to cash and, and forget the rest.

519
00:33:02,080 --> 00:33:04,080
Is that fair enough?

520
00:33:04,080 --> 00:33:07,680
The big difference is like with accrual, you, I don't even know.

521
00:33:07,680 --> 00:33:08,680
It's just so complicated.

522
00:33:08,680 --> 00:33:09,680
Here's the thing.

523
00:33:09,680 --> 00:33:10,680
Here's the thing.

524
00:33:10,680 --> 00:33:17,120
If you're going to do a cruel, which means you're with resellers, it's a super headache

525
00:33:17,120 --> 00:33:23,120
because in order to do it right, if you go buy a hundred things from the thrift store,

526
00:33:23,120 --> 00:33:30,720
you need to come home and put those hundred things into your expenses and into your inventory,

527
00:33:30,720 --> 00:33:31,720
into your inventory.

528
00:33:31,720 --> 00:33:36,440
You don't get to claim any of that stuff.

529
00:33:36,440 --> 00:33:38,920
None of it.

530
00:33:38,920 --> 00:33:41,880
You put it into your inventory.

531
00:33:41,880 --> 00:33:45,640
You haven't even listed it yet.

532
00:33:45,640 --> 00:33:53,360
Now you, you decide, okay, now you're going to go wash it or, you know, look at the book

533
00:33:53,360 --> 00:33:57,800
and make sure it's actually a good thing.

534
00:33:57,800 --> 00:34:03,200
And you find five of your books.

535
00:34:03,200 --> 00:34:04,440
There was mold in them.

536
00:34:04,440 --> 00:34:06,820
You can't sell them.

537
00:34:06,820 --> 00:34:10,920
So now you have to go back and take out five of the entries.

538
00:34:10,920 --> 00:34:15,140
You are ready to put the time in for.

539
00:34:15,140 --> 00:34:18,020
And those five entries, well, they're not going to take them out.

540
00:34:18,020 --> 00:34:22,760
You're going to leave them there and you're going to make an entry that you are going

541
00:34:22,760 --> 00:34:24,640
to throw them away.

542
00:34:24,640 --> 00:34:32,480
So they're not going to be listed, but they can be moved from your inventory into your

543
00:34:32,480 --> 00:34:42,280
expenses because at the amount that you paid for them, because they were not worth selling

544
00:34:42,280 --> 00:34:44,920
after you bought them.

545
00:34:44,920 --> 00:34:47,800
And then you finally get through the rest of them and then you go take your pictures

546
00:34:47,800 --> 00:34:49,240
and then you get them listed.

547
00:34:49,240 --> 00:34:52,600
And then, you know, half of them never sell.

548
00:34:52,600 --> 00:34:56,160
So you do at some point in time, you're going to have to take the other half of them and

549
00:34:56,160 --> 00:35:01,240
put them over there for the amount that you paid for them.

550
00:35:01,240 --> 00:35:06,420
This might be, you know, a year or two or five years from now when you decide to purge

551
00:35:06,420 --> 00:35:10,640
all your stuff and all your bad purchases.

552
00:35:10,640 --> 00:35:17,820
And so that's money that you could have claimed all that time ago against the income that

553
00:35:17,820 --> 00:35:19,880
you made that year.

554
00:35:19,880 --> 00:35:21,680
But you didn't do that.

555
00:35:21,680 --> 00:35:26,440
You took all the extra time to do all the different line by line stuff.

556
00:35:26,440 --> 00:35:32,240
And people think that because they have put in all these things line by line, that that's

557
00:35:32,240 --> 00:35:34,720
actually their bookkeeping.

558
00:35:34,720 --> 00:35:36,680
But it's not their bookkeeping.

559
00:35:36,680 --> 00:35:43,280
They've got a whole ton of extra expenses on top of that, that they're not even thinking

560
00:35:43,280 --> 00:35:45,760
about.

561
00:35:45,760 --> 00:35:52,760
So on top of that, if you're going to do accrual for your inventory, then you have to do accrual

562
00:35:52,760 --> 00:35:54,960
for everything in your business.

563
00:35:54,960 --> 00:36:00,920
So if you buy a pack of paper, for example, and say the pack of paper was ten dollars

564
00:36:00,920 --> 00:36:05,040
for a hundred sheets, for 500 sheets, that's however many sheets.

565
00:36:05,040 --> 00:36:10,080
So you literally are supposed to count the number of sheets that you use and you're only

566
00:36:10,080 --> 00:36:14,760
paying for, you're only expensing what you have used, not the...

567
00:36:14,760 --> 00:36:16,360
You got to be nuts.

568
00:36:16,360 --> 00:36:19,280
Not a fun game.

569
00:36:19,280 --> 00:36:22,000
But I do have a fun game for you, Cheryl.

570
00:36:22,000 --> 00:36:23,800
I don't want you to go into nuances.

571
00:36:23,800 --> 00:36:28,400
I just want a true or false that I can report it for taxes.

572
00:36:28,400 --> 00:36:29,400
Okay.

573
00:36:29,400 --> 00:36:31,200
We'll start easy here.

574
00:36:31,200 --> 00:36:33,160
Yes, true.

575
00:36:33,160 --> 00:36:35,960
All right.

576
00:36:35,960 --> 00:36:40,440
Not what's in the wallet, but the wallet itself.

577
00:36:40,440 --> 00:36:41,960
Did you buy it to sell it?

578
00:36:41,960 --> 00:36:45,600
No, my own personal wallet to use to put my stuff in.

579
00:36:45,600 --> 00:36:46,600
No.

580
00:36:46,600 --> 00:36:47,600
Oh, sadness.

581
00:36:47,600 --> 00:36:48,600
Cell phone.

582
00:36:48,600 --> 00:36:49,600
Absolutely.

583
00:36:49,600 --> 00:36:50,600
Love that one.

584
00:36:50,600 --> 00:36:51,600
Coffee.

585
00:36:51,600 --> 00:36:52,600
No.

586
00:36:52,600 --> 00:37:01,320
Oh, haircut or beard cut?

587
00:37:01,320 --> 00:37:04,120
Are you in your photos?

588
00:37:04,120 --> 00:37:06,120
Oh, you.

589
00:37:06,120 --> 00:37:08,120
Not yet.

590
00:37:08,120 --> 00:37:10,160
Wait, wait, wait.

591
00:37:10,160 --> 00:37:16,680
You are making an income from this podcast where you are in the video.

592
00:37:16,680 --> 00:37:17,680
Yeah, there we go.

593
00:37:17,680 --> 00:37:21,040
You're drinking your coffee.

594
00:37:21,040 --> 00:37:23,040
We talked about the coffee cup quite a bit.

595
00:37:23,040 --> 00:37:24,040
There you go.

596
00:37:24,040 --> 00:37:25,520
Now it's an expense.

597
00:37:25,520 --> 00:37:26,520
Okay.

598
00:37:26,520 --> 00:37:29,560
I want to cut in on this now because she just put you onto this new game.

599
00:37:29,560 --> 00:37:30,960
You're going to save some money.

600
00:37:30,960 --> 00:37:37,320
What about my drink I got at the gas station on my way home from the thrift stores?

601
00:37:37,320 --> 00:37:41,160
Oh, that's a hard one.

602
00:37:41,160 --> 00:37:43,320
It's not a hard one.

603
00:37:43,320 --> 00:37:50,000
It's it's a I disagree with that one.

604
00:37:50,000 --> 00:37:53,600
So that goes in.

605
00:37:53,600 --> 00:37:55,680
You said this was true, false, yes or no.

606
00:37:55,680 --> 00:37:57,160
So we're not going into the nuances.

607
00:37:57,160 --> 00:37:58,160
Sorry about that.

608
00:37:58,160 --> 00:37:59,160
So that's a no.

609
00:37:59,160 --> 00:38:01,000
No, sorry, Mike.

610
00:38:01,000 --> 00:38:08,240
What about my Halloween hoodie that I wear and YouTube videos and on the podcast?

611
00:38:08,240 --> 00:38:12,360
And it's become part of your brand because it's like you're like into the whole Michael

612
00:38:12,360 --> 00:38:13,360
Myers thing.

613
00:38:13,360 --> 00:38:15,760
I mean, I do have a Michael Myers emo on the YouTube.

614
00:38:15,760 --> 00:38:16,760
He wears them fairly.

615
00:38:16,760 --> 00:38:17,960
It's like my coffee cup.

616
00:38:17,960 --> 00:38:20,040
It's like in every episode.

617
00:38:20,040 --> 00:38:21,640
So there you go.

618
00:38:21,640 --> 00:38:22,640
Yes.

619
00:38:22,640 --> 00:38:29,280
I guess like what's the what's the gray area when it comes to like uniforms and food, right?

620
00:38:29,280 --> 00:38:33,040
Because I don't go people are going to say, well, I need clothes to go to the thrift store,

621
00:38:33,040 --> 00:38:34,040
right?

622
00:38:34,040 --> 00:38:35,040
I'm not naked out there scanning books.

623
00:38:35,040 --> 00:38:36,040
I got clothes.

624
00:38:36,040 --> 00:38:40,280
And what about like what if I'm out and about and I want to stop at Chick-fil-A and get

625
00:38:40,280 --> 00:38:41,360
food for myself?

626
00:38:41,360 --> 00:38:43,400
Like I know it's kind of like a gray area.

627
00:38:43,400 --> 00:38:48,760
I'm just curious like what your take is when it comes to uniforms and food expenses for

628
00:38:48,760 --> 00:38:49,760
a reseller.

629
00:38:49,760 --> 00:38:59,200
OK, so when it comes to for a reseller, just reseller, when it comes to just a reseller,

630
00:38:59,200 --> 00:39:00,200
then.

631
00:39:00,200 --> 00:39:01,200
No clothes.

632
00:39:01,200 --> 00:39:02,200
No.

633
00:39:02,200 --> 00:39:11,800
What we can get away with, though, is because if we buy things that we wear for a little

634
00:39:11,800 --> 00:39:19,320
bit and then list, then we can, you know, we can still take them.

635
00:39:19,320 --> 00:39:26,960
We just can't take them when we first buy them because we can't we can't take our clothes

636
00:39:26,960 --> 00:39:31,200
as we have to wear the clothes we have to eat.

637
00:39:31,200 --> 00:39:34,040
So unless you have.

638
00:39:34,040 --> 00:39:41,920
Some other way of adding a reason for that expense, you can't take it now as far as food

639
00:39:41,920 --> 00:39:44,240
while you're out.

640
00:39:44,240 --> 00:39:51,440
There is no mileage that says how far you have to be away from home for it to be considered

641
00:39:51,440 --> 00:39:54,720
travel meals.

642
00:39:54,720 --> 00:40:00,600
The way that I interpret it is.

643
00:40:00,600 --> 00:40:06,560
Back when Chris Lynn was working like a couple of miles from his house in the storage unit

644
00:40:06,560 --> 00:40:11,960
in California, it was like ridiculous to try and get, you know, that couple of miles.

645
00:40:11,960 --> 00:40:13,600
It was like hours of time.

646
00:40:13,600 --> 00:40:14,600
Right.

647
00:40:14,600 --> 00:40:19,800
I would totally feel comfortable with him taking his lunch.

648
00:40:19,800 --> 00:40:32,720
But for me, it's, you know, what in my area, if I leave my area, then I can take.

649
00:40:32,720 --> 00:40:35,840
I could take my lunch or I could take a meal.

650
00:40:35,840 --> 00:40:43,000
But if I'm within my area and I've got a couple of thrift stores that are near me, then I'm

651
00:40:43,000 --> 00:40:45,560
not going to be taking meals that day.

652
00:40:45,560 --> 00:40:52,600
I'm going to I'm only going to take it if I'm out and I go outside of my area and I'm

653
00:40:52,600 --> 00:40:55,080
gone all day long, then I will.

654
00:40:55,080 --> 00:40:57,720
I will take a meal.

655
00:40:57,720 --> 00:40:59,560
So here's a fun one.

656
00:40:59,560 --> 00:41:02,680
You hear all the time the term tax brackets.

657
00:41:02,680 --> 00:41:04,920
What's the best tax bracket to be in?

658
00:41:04,920 --> 00:41:08,360
Or is there a best tax bracket to be in?

659
00:41:08,360 --> 00:41:09,360
One where you're paying nothing.

660
00:41:09,360 --> 00:41:10,360
There we go.

661
00:41:10,360 --> 00:41:11,860
I like that answer.

662
00:41:11,860 --> 00:41:12,920
What's that one, Cheryl?

663
00:41:12,920 --> 00:41:16,920
I want to get to that one.

664
00:41:16,920 --> 00:41:22,760
That one is not waiting to the last minute to do your bookkeeping and your taxes.

665
00:41:22,760 --> 00:41:28,080
That one is paying attention to everything that you're doing all year long, having someone

666
00:41:28,080 --> 00:41:33,520
that you're talking to on a regular basis so that you can find all of the things and

667
00:41:33,520 --> 00:41:48,840
add in the things so that you are reducing your gross income below your standard deduction.

668
00:41:48,840 --> 00:41:52,680
So I'm going to ask probably a higher level one as some people a little bit more advanced

669
00:41:52,680 --> 00:41:54,280
that listen to this.

670
00:41:54,280 --> 00:42:00,680
So at the end of the rainbow, how we keep the most money, I see a lot of corporations

671
00:42:00,680 --> 00:42:06,600
do this, they become what's called a conglomerate and they're basically all funneling the chain

672
00:42:06,600 --> 00:42:11,000
business with all these little sub businesses that provide the main business.

673
00:42:11,000 --> 00:42:18,720
Is that the best way to, well, as you put it, not pay taxes or have zero taxes?

674
00:42:18,720 --> 00:42:23,320
Or is there an even better way than doing the conglomerate route?

675
00:42:23,320 --> 00:42:31,960
So for smaller businesses, that route is very difficult to get to, number one.

676
00:42:31,960 --> 00:42:43,600
Number two, FinCEN, which is the Financial Criminal Enforcement Network, they put it

677
00:42:43,600 --> 00:42:45,240
into law several years ago.

678
00:42:45,240 --> 00:42:53,920
It's actually mandated for this year that if you have an LLC, if it was started prior

679
00:42:53,920 --> 00:43:04,280
to 2024, you have this full year to fill out their paper saying who actually owns the business.

680
00:43:04,280 --> 00:43:07,400
So people have to come out of the shadows?

681
00:43:07,400 --> 00:43:08,400
Yes.

682
00:43:08,400 --> 00:43:18,560
And if you start the business in 2024, you have to do it within, I think, in 60 days,

683
00:43:18,560 --> 00:43:20,880
maybe 30 days.

684
00:43:20,880 --> 00:43:27,240
But yeah, so there are actually, I've talked to several, there are actually lawyers and

685
00:43:27,240 --> 00:43:34,760
CPAs that are finally saying no to LLCs and trying to steer people away from it because

686
00:43:34,760 --> 00:43:36,920
they don't want to have any parts of it.

687
00:43:36,920 --> 00:43:44,640
Because what happens is if a lawyer or an accountant or myself was to help you fill

688
00:43:44,640 --> 00:43:50,040
out this paper and sign off on it, now if you change your name, if you get married,

689
00:43:50,040 --> 00:43:54,520
if you move, if you do this, if you do that, if you go to the bathroom wrong, then they

690
00:43:54,520 --> 00:43:58,440
are now responsible for making all of the updates on that form.

691
00:43:58,440 --> 00:44:02,440
And if they don't make the updates, then they're the ones in trouble.

692
00:44:02,440 --> 00:44:03,440
That sounds horrible.

693
00:44:03,440 --> 00:44:04,440
I don't like it.

694
00:44:04,440 --> 00:44:06,640
I don't like it either.

695
00:44:06,640 --> 00:44:10,560
But it's a good point to bring up because a lot of people always ask, people that just

696
00:44:10,560 --> 00:44:16,520
start reselling, it's always, oh, should I get an LLC before they even sold their first

697
00:44:16,520 --> 00:44:17,800
month of stuff?

698
00:44:17,800 --> 00:44:21,160
So for me, I've always operated as a sole proprietor.

699
00:44:21,160 --> 00:44:25,960
So what's your take on LLC versus, because you see it all the time, I need an LLC before

700
00:44:25,960 --> 00:44:27,320
I even start reselling.

701
00:44:27,320 --> 00:44:31,720
What's your take on the sole proprietor versus the LLC route that seems to be like, I don't

702
00:44:31,720 --> 00:44:34,440
know, the official cool, like, oh, I got an LLC, right?

703
00:44:34,440 --> 00:44:36,760
Like, I don't know, like, what's your take on it?

704
00:44:36,760 --> 00:44:43,720
So my take is, this is the hill I will die on.

705
00:44:43,720 --> 00:44:48,240
People seem to think that being a sole proprietor is not a business.

706
00:44:48,240 --> 00:44:51,680
It's absolutely a business.

707
00:44:51,680 --> 00:44:55,040
You have less oversight.

708
00:44:55,040 --> 00:44:58,000
So I prefer less oversight.

709
00:44:58,000 --> 00:45:02,560
Like, quit, quit, you know, needle and diamond, they quit looking over my shoulder.

710
00:45:02,560 --> 00:45:04,560
I don't need your, I don't need your help.

711
00:45:04,560 --> 00:45:06,600
Uncle Sam, go away.

712
00:45:06,600 --> 00:45:07,600
I'll take care of this.

713
00:45:07,600 --> 00:45:08,600
Got it.

714
00:45:08,600 --> 00:45:20,240
When you, when you start an LLC or an LLP or a C Corp, or you get designated as an S Corp,

715
00:45:20,240 --> 00:45:26,640
it, what it has done and why they're all so, I want you to do this is because of all the

716
00:45:26,640 --> 00:45:32,520
income it creates for the person that's trying to talk you into it.

717
00:45:32,520 --> 00:45:36,800
Then they get to help you do, then they do the paperwork for you.

718
00:45:36,800 --> 00:45:38,400
Then they set you up for all this stuff.

719
00:45:38,400 --> 00:45:42,720
And now you're set up for all this stuff and they never explained to you what was required.

720
00:45:42,720 --> 00:45:48,120
So now you've gone a whole year and it's time to do your taxes and you didn't know that

721
00:45:48,120 --> 00:45:52,000
you had to file an informational return and you didn't know that it was going to cost

722
00:45:52,000 --> 00:45:57,840
you an extra, who knows how much they're going to charge you for, for, you know, the, because

723
00:45:57,840 --> 00:46:05,040
you have an LLC now or that they got you designated as an escort because that was going to help

724
00:46:05,040 --> 00:46:13,360
you with your, with your taxes and you didn't do payroll all year because you didn't know

725
00:46:13,360 --> 00:46:15,640
you were supposed to.

726
00:46:15,640 --> 00:46:17,040
And now you've got fine.

727
00:46:17,040 --> 00:46:22,200
You're going to get fined an extraordinary amount of money because you didn't do payroll,

728
00:46:22,200 --> 00:46:26,120
but you did take distributions.

729
00:46:26,120 --> 00:46:30,520
And then I'm talking to people that have all this has happened to, and they're like, what?

730
00:46:30,520 --> 00:46:33,920
And you watch the color drain from their face.

731
00:46:33,920 --> 00:46:35,320
So true.

732
00:46:35,320 --> 00:46:39,600
I mean, even in business, people get the types of corporations all confused.

733
00:46:39,600 --> 00:46:43,720
And I lean toward what you're saying there, the simpler, the better.

734
00:46:43,720 --> 00:46:47,840
And there's whatever benefit you're trying to get over here, like with the corporation,

735
00:46:47,840 --> 00:46:52,040
because I see this from LLCs trying to become a corporation from a sole prop, trying to

736
00:46:52,040 --> 00:46:53,040
call it a corporation.

737
00:46:53,040 --> 00:46:57,080
You can get it elsewhere and still be a sole prop or close enough.

738
00:46:57,080 --> 00:47:00,280
And I don't think a lot of people realize that.

739
00:47:00,280 --> 00:47:01,280
Right.

740
00:47:01,280 --> 00:47:03,200
You're, you're exactly right.

741
00:47:03,200 --> 00:47:09,320
And that's, that's part, I probably say that in almost every call that I'm on is like,

742
00:47:09,320 --> 00:47:10,320
what?

743
00:47:10,320 --> 00:47:11,800
A sole prop is still a damn business.

744
00:47:11,800 --> 00:47:12,800
Yeah.

745
00:47:12,800 --> 00:47:13,800
People lack it off.

746
00:47:13,800 --> 00:47:14,800
It's still a business.

747
00:47:14,800 --> 00:47:18,080
You may have to fill out an extra form to get the tax break that shiny S corp over here

748
00:47:18,080 --> 00:47:19,080
got, but whatever.

749
00:47:19,080 --> 00:47:21,520
It's still the same thing.

750
00:47:21,520 --> 00:47:23,440
Really?

751
00:47:23,440 --> 00:47:32,080
Um, I have done a lot of taxes over the years and I'm not going to say that I am, that I

752
00:47:32,080 --> 00:47:33,080
know everything.

753
00:47:33,080 --> 00:47:40,960
Cause I, I, I first to admit, I don't know everything, but I have sat down with scenarios

754
00:47:40,960 --> 00:47:47,840
that these people in YouTube land will come up with and say that the S corp is going to

755
00:47:47,840 --> 00:47:49,720
save you money.

756
00:47:49,720 --> 00:47:54,800
And I haven't figured out how it actually does it yet.

757
00:47:54,800 --> 00:47:58,640
Like they'd leave out a bunch of stuff in the middle.

758
00:47:58,640 --> 00:48:04,880
And I've sat down and done it as a, as a sole prop, done the taxes as a sole prop on paper

759
00:48:04,880 --> 00:48:08,200
and then done them as a S corp.

760
00:48:08,200 --> 00:48:17,280
And um, yeah, I don't get it because if you're doing an S corp where you have to pay yourself

761
00:48:17,280 --> 00:48:25,200
a payroll, now you have money that you have to pay taxes on before you spend it.

762
00:48:25,200 --> 00:48:30,360
How is that a good thing?

763
00:48:30,360 --> 00:48:32,960
This is all, listen, so proud all the way.

764
00:48:32,960 --> 00:48:34,480
And that's what I've been in from day one.

765
00:48:34,480 --> 00:48:39,600
I'm already sitting over here confused S corps, all this other stuff like sole proprietor

766
00:48:39,600 --> 00:48:45,120
is just the, I mean, no, because this is the reality of most people and I'll be, I see

767
00:48:45,120 --> 00:48:46,600
it all the time on Instagram.

768
00:48:46,600 --> 00:48:51,360
Oh, hire your kid, hire your cat, be an LLC, you know, join the circus.

769
00:48:51,360 --> 00:48:53,440
You'll save all this money in taxes.

770
00:48:53,440 --> 00:48:58,060
There's so much out there and sole proprietor is just the easy straightforward way to kind

771
00:48:58,060 --> 00:49:00,960
of get yourself in, understand what you're doing.

772
00:49:00,960 --> 00:49:01,960
Sure.

773
00:49:01,960 --> 00:49:05,240
Maybe if you're doing millions of dollars, maybe there is a benefit to go on this route

774
00:49:05,240 --> 00:49:06,560
when it comes to certain things.

775
00:49:06,560 --> 00:49:09,720
But listen, none of us are this type of hot shots yet.

776
00:49:09,720 --> 00:49:12,480
You're perfectly fine being a sole proprietor.

777
00:49:12,480 --> 00:49:13,480
You're going to be okay.

778
00:49:13,480 --> 00:49:15,600
And yes, you are a business.

779
00:49:15,600 --> 00:49:26,120
So if you were saying something and I was wanting to, oh, well, let me, let me hit this

780
00:49:26,120 --> 00:49:27,160
one at least.

781
00:49:27,160 --> 00:49:36,160
So an LL, oh, LLCs and sole props do their taxes the exact same way on a schedule C.

782
00:49:36,160 --> 00:49:42,720
But the LLC has to pay more money into the, has to pay money into the government to have

783
00:49:42,720 --> 00:49:47,560
an LLC and has all this paperwork hoops to jump through.

784
00:49:47,560 --> 00:49:49,760
So you're doing your taxes the exact same way.

785
00:49:49,760 --> 00:49:56,340
There is no difference in what you are allowed to get or what there's no nothing.

786
00:49:56,340 --> 00:50:01,640
Everything is exactly the same.

787
00:50:01,640 --> 00:50:12,640
If you are selling something like toys that to kids where there could be a liability,

788
00:50:12,640 --> 00:50:17,520
maybe you want to think about having an LLC.

789
00:50:17,520 --> 00:50:22,360
Maybe you want to consider having some type of umbrella insurance.

790
00:50:22,360 --> 00:50:26,480
I'm actually going to talk with a couple of people this week about umbrella insurance

791
00:50:26,480 --> 00:50:30,080
and make sure that I'm understanding it correctly.

792
00:50:30,080 --> 00:50:38,840
But that would be one thing in the reseller word HBA, something like that, that could

793
00:50:38,840 --> 00:50:44,280
cause possibly cause harm to someone that you might want to protect yourself from.

794
00:50:44,280 --> 00:50:48,480
Like my sister friends, they just slip and fall and bust their head open and bleed on

795
00:50:48,480 --> 00:50:50,720
my floor in my books.

796
00:50:50,720 --> 00:50:52,360
But yeah.

797
00:50:52,360 --> 00:50:54,000
So, so there's that.

798
00:50:54,000 --> 00:51:01,400
There's another one that if you are going to get involved in real estate, always buy

799
00:51:01,400 --> 00:51:04,480
real estate through the business.

800
00:51:04,480 --> 00:51:09,080
Always start an LLC for the property before you buy it.

801
00:51:09,080 --> 00:51:15,400
That's the one time that I will say absolutely do an LLC.

802
00:51:15,400 --> 00:51:17,720
So I got a fun one here.

803
00:51:17,720 --> 00:51:21,680
Because there's a lot of husband and wife resellers.

804
00:51:21,680 --> 00:51:26,920
Are they still considered a sole prop if there's two of them and they're 50-50 partners?

805
00:51:26,920 --> 00:51:29,120
No, they're LLPs.

806
00:51:29,120 --> 00:51:32,680
There we go.

807
00:51:32,680 --> 00:51:46,440
They, and also what they say they are and what is on the paperwork with the platform

808
00:51:46,440 --> 00:51:47,960
is different.

809
00:51:47,960 --> 00:51:58,440
So you and your spouse could be working together within the business, but only one of the spouses

810
00:51:58,440 --> 00:52:04,720
is actually on the 1099 that comes from the platform.

811
00:52:04,720 --> 00:52:07,840
And that's perfectly fine.

812
00:52:07,840 --> 00:52:13,760
That one spouse is the one that's going to go on the schedule C and all the expenses

813
00:52:13,760 --> 00:52:16,640
are going to go through it.

814
00:52:16,640 --> 00:52:18,680
And the other spouse doesn't have to be there.

815
00:52:18,680 --> 00:52:21,280
It's considered a family business.

816
00:52:21,280 --> 00:52:23,200
It's no, it's no problem.

817
00:52:23,200 --> 00:52:26,840
Now if you want to start paying your spouse, then that's a whole different story.

818
00:52:26,840 --> 00:52:30,760
And that's more time than we got.

819
00:52:30,760 --> 00:52:32,600
Now what about outside of marriage?

820
00:52:32,600 --> 00:52:36,760
Like just two people getting together, are they still an LP or are they something different?

821
00:52:36,760 --> 00:52:39,640
I know the answer is that's what I'm asking.

822
00:52:39,640 --> 00:52:43,800
That would be a partnership also.

823
00:52:43,800 --> 00:52:49,640
And you would need to do the paperwork for it because you should always have some type

824
00:52:49,640 --> 00:52:55,000
of contract for having a partnership.

825
00:52:55,000 --> 00:52:56,180
But yeah.

826
00:52:56,180 --> 00:52:57,800
What about vehicles?

827
00:52:57,800 --> 00:53:01,960
Let's touch vehicles real quick when it comes to expenses because again, there's a lot of

828
00:53:01,960 --> 00:53:03,040
misinformation.

829
00:53:03,040 --> 00:53:04,560
Should I be doing miles?

830
00:53:04,560 --> 00:53:06,520
Should I be writing off gas and repairs?

831
00:53:06,520 --> 00:53:09,400
What if I go buy a Lamborghini for my book selling business?

832
00:53:09,400 --> 00:53:12,840
Can I write off the purchase price of the Lamborghini if it's just for the book selling

833
00:53:12,840 --> 00:53:13,840
business?

834
00:53:13,840 --> 00:53:15,160
Like give me a quick little insight.

835
00:53:15,160 --> 00:53:16,160
Well, it depends.

836
00:53:16,160 --> 00:53:18,040
Did you buy it from your own personal Lamborghini?

837
00:53:18,040 --> 00:53:23,080
I don't even know what you're talking about here.

838
00:53:23,080 --> 00:53:26,880
So I bought, all right, I'm a reseller.

839
00:53:26,880 --> 00:53:29,840
For some reason, my car explodes today.

840
00:53:29,840 --> 00:53:33,880
Resale is my main source of income or I guess we'll do the main source of income first.

841
00:53:33,880 --> 00:53:36,680
I go buy another vehicle.

842
00:53:36,680 --> 00:53:41,600
Can I write off the purchase price of the vehicle?

843
00:53:41,600 --> 00:53:44,040
That depends.

844
00:53:44,040 --> 00:53:54,920
So I said earlier that the legislation is in place to retroactive 179 deduction to 100%

845
00:53:54,920 --> 00:53:57,320
for 2023.

846
00:53:57,320 --> 00:54:04,440
So there is the possibility that you could take 100% of the purchase price of the vehicle

847
00:54:04,440 --> 00:54:06,360
depending on what the vehicle is.

848
00:54:06,360 --> 00:54:20,400
If the vehicle is a 6,000 pound or more weight, gross vehicle weight, and if the vehicle is,

849
00:54:20,400 --> 00:54:31,660
can seat at least nine people behind the driver or has a truck bed of at least six feet, then

850
00:54:31,660 --> 00:54:40,660
you can take 100% of the purchase price up to the amount of business use.

851
00:54:40,660 --> 00:54:47,080
So you still have to keep the mileage and you still have to keep all the deductions

852
00:54:47,080 --> 00:54:52,960
because the mileage is going to equate what you're going to be able to get off the 179

853
00:54:52,960 --> 00:54:59,060
deduction and it has to be at least 51% of business miles.

854
00:54:59,060 --> 00:55:02,920
But you can't take actual mileage.

855
00:55:02,920 --> 00:55:08,880
You have to take actual expenses for your vehicle.

856
00:55:08,880 --> 00:55:12,600
So it gets kind of complicated, but it's huge.

857
00:55:12,600 --> 00:55:19,240
If you've got the money in your business that you need that kind of a tax write off, it's

858
00:55:19,240 --> 00:55:26,000
definitely a super viable option to reduce your gross income.

859
00:55:26,000 --> 00:55:28,400
So let's take it a step further.

860
00:55:28,400 --> 00:55:30,560
You're doing the normal accounting for your vehicle.

861
00:55:30,560 --> 00:55:35,080
You get into a fender bender and you got like three grams of repairs to have done to get

862
00:55:35,080 --> 00:55:37,160
your vehicle back up to snuff.

863
00:55:37,160 --> 00:55:41,400
Are those repair costs a deduction or a write off of some kind?

864
00:55:41,400 --> 00:55:42,400
Okay.

865
00:55:42,400 --> 00:55:48,240
So that depends on whether you're taking mileage or you're taking actual.

866
00:55:48,240 --> 00:55:57,640
And if you're taking actual, then you can write off the deductions that you pay for,

867
00:55:57,640 --> 00:56:01,160
not what the insurance company covers.

868
00:56:01,160 --> 00:56:07,040
And again, it's only based on the mileage of the miles that we're actually driven for

869
00:56:07,040 --> 00:56:08,040
business.

870
00:56:08,040 --> 00:56:12,560
So if you're only driving your vehicle 10% for business, then that's all you're going

871
00:56:12,560 --> 00:56:14,360
to get is 10%.

872
00:56:14,360 --> 00:56:18,320
So you can't correct me if I'm wrong.

873
00:56:18,320 --> 00:56:21,600
You can't claim gas and miles.

874
00:56:21,600 --> 00:56:23,640
You have to go one way or the other.

875
00:56:23,640 --> 00:56:24,640
Yes.

876
00:56:24,640 --> 00:56:25,640
Okay.

877
00:56:25,640 --> 00:56:28,360
So that's what I was because of the thing, a lot of people kind of just, oh, I can write

878
00:56:28,360 --> 00:56:29,360
off everything.

879
00:56:29,360 --> 00:56:34,480
For me, I personally, I do the, well, not the miles one.

880
00:56:34,480 --> 00:56:35,480
I do the other one.

881
00:56:35,480 --> 00:56:37,960
I buy new tires for the Lamborghini.

882
00:56:37,960 --> 00:56:39,720
It's a write off, things like that.

883
00:56:39,720 --> 00:56:40,720
So I don't do the miles.

884
00:56:40,720 --> 00:56:46,640
I do the actual, I guess, vehicle, I guess, upkeep cost.

885
00:56:46,640 --> 00:56:47,640
Actual vehicle expenses.

886
00:56:47,640 --> 00:56:48,640
Okay.

887
00:56:48,640 --> 00:56:50,840
You still have to keep track of your miles.

888
00:56:50,840 --> 00:56:51,840
Yeah.

889
00:56:51,840 --> 00:56:52,840
Yeah.

890
00:56:52,840 --> 00:56:58,120
So when tax time comes, you don't put the write off for the miles in addition to-

891
00:56:58,120 --> 00:56:59,120
Right.

892
00:56:59,120 --> 00:57:00,120
No.

893
00:57:00,120 --> 00:57:01,120
No.

894
00:57:01,120 --> 00:57:09,280
So the key is, and the reason why I generally teach for people to track their miles is because

895
00:57:09,280 --> 00:57:13,160
I have to get their head wrapped around actually tracking their miles before that I can get

896
00:57:13,160 --> 00:57:17,560
them their head wrapped around tracking both.

897
00:57:17,560 --> 00:57:21,960
And you have to keep them separate because we don't know which one we're going to use,

898
00:57:21,960 --> 00:57:22,960
right?

899
00:57:22,960 --> 00:57:23,960
Necessarily.

900
00:57:23,960 --> 00:57:31,040
If it's the first year, then we still have a choice.

901
00:57:31,040 --> 00:57:35,360
If we start out taking miles, we still have a choice.

902
00:57:35,360 --> 00:57:41,080
If we start out taking actual, we no longer have a choice, but we still have to keep up

903
00:57:41,080 --> 00:57:42,080
with both.

904
00:57:42,080 --> 00:57:45,600
So- Go ahead, Johnny.

905
00:57:45,600 --> 00:57:53,040
So outside of Excel, which I consider probably the best, what would be the program you would

906
00:57:53,040 --> 00:57:54,040
tell people to use?

907
00:57:54,040 --> 00:57:58,400
A pre-built program for keeping track of all their stuff they need to keep track of come

908
00:57:58,400 --> 00:58:01,680
tax season outside of Excel?

909
00:58:01,680 --> 00:58:03,920
And your tax document, of course.

910
00:58:03,920 --> 00:58:08,920
Well, I mean, I was going to say first and foremost, it'd be my workbook.

911
00:58:08,920 --> 00:58:12,960
I mean, I call it simplified accounting for a reason.

912
00:58:12,960 --> 00:58:20,920
If you want an actual program, then I just got, I'm in the process of getting certified.

913
00:58:20,920 --> 00:58:24,900
I am an accountant under Xero.

914
00:58:24,900 --> 00:58:29,600
So I'm sure you've been hearing Xero because it came out of Australia and all these Australian

915
00:58:29,600 --> 00:58:35,240
people are talking about Xero and it's like lying around the market, but it's flying around

916
00:58:35,240 --> 00:58:39,920
the reselling community.

917
00:58:39,920 --> 00:58:45,080
I hate that other company with a passion, the one that starts with a QB that's actually

918
00:58:45,080 --> 00:58:49,880
a big I and has a shoot knees for the tax side of things.

919
00:58:49,880 --> 00:58:52,620
I can't stand that company.

920
00:58:52,620 --> 00:58:54,960
It's a huge trigger for me.

921
00:58:54,960 --> 00:58:57,560
So don't use them.

922
00:58:57,560 --> 00:58:58,560
Okay.

923
00:58:58,560 --> 00:59:02,800
Whatever you do, don't go there.

924
00:59:02,800 --> 00:59:03,800
It's too late for me.

925
00:59:03,800 --> 00:59:05,080
I don't want you to go to H&R Block.

926
00:59:05,080 --> 00:59:06,320
Just don't go there.

927
00:59:06,320 --> 00:59:07,600
It's too late for me, Cheryl.

928
00:59:07,600 --> 00:59:08,600
I'm a lost cause.

929
00:59:08,600 --> 00:59:15,040
I understand if you block me after this, but unfortunately I'm on the dark side here with

930
00:59:15,040 --> 00:59:16,040
QuickBooks.

931
00:59:16,040 --> 00:59:20,000
It's kind of what I did from the beginning, five, six years ago, whenever I started this

932
00:59:20,000 --> 00:59:21,000
thing.

933
00:59:21,000 --> 00:59:24,160
So I'm stuck in prison, Cheryl, and I don't know if you can get any.

934
00:59:24,160 --> 00:59:25,620
You're not stuck in prison.

935
00:59:25,620 --> 00:59:27,080
You're not stuck in prison.

936
00:59:27,080 --> 00:59:31,200
And I guess I'm just going to have to spend more time in Discord learning how to use Discord

937
00:59:31,200 --> 00:59:35,680
so that I can convert you over from QuickBooks to Xero.

938
00:59:35,680 --> 00:59:37,920
Listen, I knew from your YouTube videos.

939
00:59:37,920 --> 00:59:40,720
You're not a fan of QuickBooks and TurboTax.

940
00:59:40,720 --> 00:59:42,840
So I'm like, I'm not bringing it up, but here we are.

941
00:59:42,840 --> 00:59:44,520
I had it out myself here.

942
00:59:44,520 --> 00:59:45,520
It's all right.

943
00:59:45,520 --> 00:59:46,520
It's my fault.

944
00:59:46,520 --> 00:59:48,280
I want to save you money.

945
00:59:48,280 --> 00:59:49,280
Number one.

946
00:59:49,280 --> 00:59:51,760
I want to save you money.

947
00:59:51,760 --> 00:59:53,000
You don't even have to spend it.

948
00:59:53,000 --> 00:59:55,280
I'm not asking you to spend it with me.

949
00:59:55,280 --> 00:59:58,360
I just want to save you money.

950
00:59:58,360 --> 01:00:04,520
So Xero is a lot easier to use.

951
01:00:04,520 --> 01:00:13,960
They cost a lot less money and then you're not supporting this.

952
01:00:13,960 --> 01:00:20,600
I feel about that company the way some people feel about Jeff Bezos.

953
01:00:20,600 --> 01:00:25,240
But it's easier.

954
01:00:25,240 --> 01:00:28,260
It's cheaper.

955
01:00:28,260 --> 01:00:32,920
You can still pull all your stuff in and have the things.

956
01:00:32,920 --> 01:00:35,400
But you can see it.

957
01:00:35,400 --> 01:00:40,680
The thing that I don't like about QuickBooks and TurboTax is they hide everything from

958
01:00:40,680 --> 01:00:48,360
people and you can't see what is actually working so that you know for sure that the

959
01:00:48,360 --> 01:00:50,960
numbers are right.

960
01:00:50,960 --> 01:00:53,160
And if I can't see it, I don't trust it.

961
01:00:53,160 --> 01:00:56,160
It's basically just kind of like the whole idea of just dropping a bag of receipts.

962
01:00:56,160 --> 01:00:58,040
You're kind of just doing that with QuickBooks.

963
01:00:58,040 --> 01:01:00,040
I mean, it's basically the equivalent.

964
01:01:00,040 --> 01:01:04,200
You just pay $30 a month to drop your receipts into their program.

965
01:01:04,200 --> 01:01:08,400
I 100% understand that argument for sure.

966
01:01:08,400 --> 01:01:11,600
And I mean, I can save you said 30 bucks a month.

967
01:01:11,600 --> 01:01:13,880
I can get you into Xero for 15.

968
01:01:13,880 --> 01:01:17,320
Say she's ready to go.

969
01:01:17,320 --> 01:01:20,440
Should we push her affiliate link all over the place for Xero when the time comes?

970
01:01:20,440 --> 01:01:21,720
It's not an affiliate link.

971
01:01:21,720 --> 01:01:22,840
It's not an affiliate link.

972
01:01:22,840 --> 01:01:24,400
And you don't even have to work with me.

973
01:01:24,400 --> 01:01:26,800
You just go get it.

974
01:01:26,800 --> 01:01:29,400
Just go get it.

975
01:01:29,400 --> 01:01:30,400
It's the future.

976
01:01:30,400 --> 01:01:31,400
The kids, it's the future.

977
01:01:31,400 --> 01:01:36,080
So, you know, again, you have to go into detail on this one.

978
01:01:36,080 --> 01:01:37,880
Just a simple yes, no.

979
01:01:37,880 --> 01:01:43,960
So we get forms from Amazon and forms for eBay telling our gross net.

980
01:01:43,960 --> 01:01:45,800
Have they reported and accounted for everything?

981
01:01:45,800 --> 01:01:49,520
Remember, yes or no, because I know this is a detailed answer.

982
01:01:49,520 --> 01:01:52,000
It would take us like three hours to explain.

983
01:01:52,000 --> 01:01:54,040
No, it won't take us three hours.

984
01:01:54,040 --> 01:01:55,480
I can do it really quickly.

985
01:01:55,480 --> 01:01:59,520
But I will tell you that eBay's got the best dashboard and tells you everything.

986
01:01:59,520 --> 01:02:01,000
Yeah, there we go.

987
01:02:01,000 --> 01:02:02,000
All right.

988
01:02:02,000 --> 01:02:06,240
But now that you brought it up.

989
01:02:06,240 --> 01:02:11,760
If you sell on Amazon or Poshmark, and I can't speak for the other platforms, but I can definitely

990
01:02:11,760 --> 01:02:13,280
speak for those two.

991
01:02:13,280 --> 01:02:17,600
If you sell on Amazon or Poshmark, I want you to go get your gross numbers and I want

992
01:02:17,600 --> 01:02:23,640
you to take your net numbers and subtract the net that they actually stuck in your bank

993
01:02:23,640 --> 01:02:27,160
account from the gross.

994
01:02:27,160 --> 01:02:33,160
And then take all the chunk in the middle, the difference and put it in your bookkeeping

995
01:02:33,160 --> 01:02:34,160
as expenses.

996
01:02:34,160 --> 01:02:37,800
Yeah, there we go.

997
01:02:37,800 --> 01:02:43,040
Because Amazon is the worst.

998
01:02:43,040 --> 01:02:50,040
Amazon is hiding all kinds of stuff that they're putting on your 1099 so that they're trying

999
01:02:50,040 --> 01:02:53,560
to get out of having to pay it.

1000
01:02:53,560 --> 01:02:55,200
That's exactly what they're doing.

1001
01:02:55,200 --> 01:02:59,840
They're putting all the stuff that they charge you all these fees for and they're putting

1002
01:02:59,840 --> 01:03:06,880
it on the 1099 because when they report the 1099, that's an automatic straight dollar

1003
01:03:06,880 --> 01:03:09,800
for dollar deduction off of their taxes.

1004
01:03:09,800 --> 01:03:13,320
Yeah, especially if you don't get a 1099 with Amazon.

1005
01:03:13,320 --> 01:03:16,500
All I can say is good luck, Chuck, figuring out those numbers because they don't have

1006
01:03:16,500 --> 01:03:18,440
no kind of easy reports.

1007
01:03:18,440 --> 01:03:21,720
They want you to export Excel sheets.

1008
01:03:21,720 --> 01:03:22,760
They're not sorted.

1009
01:03:22,760 --> 01:03:23,760
That's a pain in the butt.

1010
01:03:23,760 --> 01:03:26,760
Thankfully, since I've been selling, I do get the 1099.

1011
01:03:26,760 --> 01:03:28,080
So I do see the fee breakdown.

1012
01:03:28,080 --> 01:03:31,580
But if you don't, like you said, you have no idea.

1013
01:03:31,580 --> 01:03:32,760
And it's all fees with Amazon.

1014
01:03:32,760 --> 01:03:35,040
We all know Amazon's taking at least 50%.

1015
01:03:35,040 --> 01:03:40,120
So that could be a huge write off you're missing when it comes to being an Amazon seller.

1016
01:03:40,120 --> 01:03:44,040
And that's a good call out for sure because you're losing thousands of dollars in write

1017
01:03:44,040 --> 01:03:46,400
off just from that alone.

1018
01:03:46,400 --> 01:03:47,400
Right.

1019
01:03:47,400 --> 01:03:50,320
And I don't want to see anybody losing that money.

1020
01:03:50,320 --> 01:03:57,240
Now, Poshmark is not quite as bad as Amazon, but they are very, very similar in the fact

1021
01:03:57,240 --> 01:04:03,600
that your cancellations are still being reported inside of your 1099.

1022
01:04:03,600 --> 01:04:04,600
I believe it.

1023
01:04:04,600 --> 01:04:07,520
So do Poshmark the exact same way.

1024
01:04:07,520 --> 01:04:11,720
I mean, I know most of your people are booksellers, but a lot of them are crossed.

1025
01:04:11,720 --> 01:04:12,840
They cross over.

1026
01:04:12,840 --> 01:04:13,840
So yeah.

1027
01:04:13,840 --> 01:04:18,080
So yeah, gross minus net.

1028
01:04:18,080 --> 01:04:19,200
Take this stuff in the middle.

1029
01:04:19,200 --> 01:04:24,040
I do have a I do have a form for Posh.

1030
01:04:24,040 --> 01:04:30,320
I that will calculate all the little different things if you want to do all the stuff.

1031
01:04:30,320 --> 01:04:38,720
But I haven't built one for Amazon because I didn't have a access to the whole downloadable

1032
01:04:38,720 --> 01:04:41,200
big report in order to build one.

1033
01:04:41,200 --> 01:04:45,360
So all right.

1034
01:04:45,360 --> 01:04:46,520
Final thoughts here.

1035
01:04:46,520 --> 01:04:49,680
Final tips and tricks when it comes to taxes.

1036
01:04:49,680 --> 01:04:53,360
Maybe give us a few things that people you kind of already gave us a few like with the

1037
01:04:53,360 --> 01:04:54,360
cell phone and everything.

1038
01:04:54,360 --> 01:04:59,440
What are some common things that a reseller could write off that most people probably

1039
01:04:59,440 --> 01:05:01,400
wouldn't think they could write off?

1040
01:05:01,400 --> 01:05:04,400
All right.

1041
01:05:04,400 --> 01:05:09,280
So do you want to know the biggest one that people forget to write off?

1042
01:05:09,280 --> 01:05:10,520
Yes, we do.

1043
01:05:10,520 --> 01:05:16,400
The one that everybody argues about the most platform fees.

1044
01:05:16,400 --> 01:05:17,400
The subscription.

1045
01:05:17,400 --> 01:05:19,600
I'm absolutely serious.

1046
01:05:19,600 --> 01:05:20,600
People forget it.

1047
01:05:20,600 --> 01:05:21,600
I put it.

1048
01:05:21,600 --> 01:05:24,400
Yeah, it's like the cell phone bill or the Internet bill.

1049
01:05:24,400 --> 01:05:25,400
Yeah.

1050
01:05:25,400 --> 01:05:26,400
OK.

1051
01:05:26,400 --> 01:05:27,400
Yes.

1052
01:05:27,400 --> 01:05:30,240
You're talking like the eBay store fee or like the Amazon professional seller fee.

1053
01:05:30,240 --> 01:05:33,760
The big number that we were just talking about.

1054
01:05:33,760 --> 01:05:34,760
All the fees.

1055
01:05:34,760 --> 01:05:35,760
Yeah.

1056
01:05:35,760 --> 01:05:36,760
Yeah.

1057
01:05:36,760 --> 01:05:37,760
They forget it.

1058
01:05:37,760 --> 01:05:38,760
They forget the whole thing.

1059
01:05:38,760 --> 01:05:39,760
The whole kit and caboodle.

1060
01:05:39,760 --> 01:05:46,080
I'm like, hey, I'm looking at people's bookkeeping and I'm like, um, no, you got to be nuts.

1061
01:05:46,080 --> 01:05:47,080
Where's your platform fees?

1062
01:05:47,080 --> 01:05:48,080
And they're like, what?

1063
01:05:48,080 --> 01:05:49,080
No, no, no, no.

1064
01:05:49,080 --> 01:05:53,000
The number that you guys complain about having to get this fee all the time.

1065
01:05:53,000 --> 01:05:54,000
That's where the money is.

1066
01:05:54,000 --> 01:05:57,040
That's where all the money went.

1067
01:05:57,040 --> 01:06:00,920
That literally doubles your burden in an Amazon business.

1068
01:06:00,920 --> 01:06:04,680
If they're taking 50 percent and you don't write that off, you're literally doubling

1069
01:06:04,680 --> 01:06:05,680
how much.

1070
01:06:05,680 --> 01:06:07,640
I mean, that's mind blowing.

1071
01:06:07,640 --> 01:06:10,720
I thought it was I thought everybody knew at least you write off the fees you're paying

1072
01:06:10,720 --> 01:06:11,720
on the platforms.

1073
01:06:11,720 --> 01:06:12,720
But I mean, that's good to know.

1074
01:06:12,720 --> 01:06:16,240
They'll just take the net number, Mike, and then they're like, this is what I made and

1075
01:06:16,240 --> 01:06:17,240
it'll do nothing else.

1076
01:06:17,240 --> 01:06:18,240
Okay.

1077
01:06:18,240 --> 01:06:19,240
Then you just forget.

1078
01:06:19,240 --> 01:06:20,240
They're not even doing that.

1079
01:06:20,240 --> 01:06:21,240
Really?

1080
01:06:21,240 --> 01:06:22,240
They're not even doing that.

1081
01:06:22,240 --> 01:06:23,240
They're taking the gross.

1082
01:06:23,240 --> 01:06:24,240
They're taking the gross.

1083
01:06:24,240 --> 01:06:25,240
They're reporting the gross.

1084
01:06:25,240 --> 01:06:26,240
That's even better.

1085
01:06:26,240 --> 01:06:31,240
They're reporting the gross and they're completely forgetting the platform fees.

1086
01:06:31,240 --> 01:06:32,240
Oh my God.

1087
01:06:32,240 --> 01:06:39,240
They're forgetting all the shipping, all the promoted, all the subscription fees, all the

1088
01:06:39,240 --> 01:06:43,080
stuff that they've been complaining about having to pay all year.

1089
01:06:43,080 --> 01:06:46,480
No wonder they're so angry on the floor.

1090
01:06:46,480 --> 01:06:47,480
No wonder.

1091
01:06:47,480 --> 01:06:49,480
They're doing their taxes wrong.

1092
01:06:49,480 --> 01:06:51,200
Oh my God.

1093
01:06:51,200 --> 01:06:52,440
All right.

1094
01:06:52,440 --> 01:06:53,720
So that's number one.

1095
01:06:53,720 --> 01:06:55,640
Number two, cell phone.

1096
01:06:55,640 --> 01:06:57,440
Number three, internet.

1097
01:06:57,440 --> 01:07:01,760
Because we are running online businesses, those are 100 percent deductible.

1098
01:07:01,760 --> 01:07:06,280
I don't care whether multiple people can be on the internet at the same time.

1099
01:07:06,280 --> 01:07:07,280
It doesn't matter.

1100
01:07:07,280 --> 01:07:11,360
We cannot run our business without it.

1101
01:07:11,360 --> 01:07:14,040
So those three.

1102
01:07:14,040 --> 01:07:18,400
Oh, continuing education.

1103
01:07:18,400 --> 01:07:19,400
These groups.

1104
01:07:19,400 --> 01:07:22,080
People forget to take these groups.

1105
01:07:22,080 --> 01:07:23,080
Doesn't matter what.

1106
01:07:23,080 --> 01:07:26,080
I can write it off.

1107
01:07:26,080 --> 01:07:27,080
Yeah.

1108
01:07:27,080 --> 01:07:28,080
YouTube.

1109
01:07:28,080 --> 01:07:35,440
Because most of what we do is learning from other sellers on YouTube.

1110
01:07:35,440 --> 01:07:39,880
So YouTube premium.

1111
01:07:39,880 --> 01:07:46,120
If you are putting your hands in your pictures or you're putting your face in your pictures

1112
01:07:46,120 --> 01:07:53,560
then like a manicure or Johnny was talking about, you know, haircut or a beard or a trim

1113
01:07:53,560 --> 01:08:05,400
or something like that, then those would be possible deductions.

1114
01:08:05,400 --> 01:08:08,280
Possible expense.

1115
01:08:08,280 --> 01:08:14,600
It's critical that you're writing this stuff down during the year.

1116
01:08:14,600 --> 01:08:22,600
There is an actual box on the taxes that you or your preparer have to check that says,

1117
01:08:22,600 --> 01:08:24,600
is it written?

1118
01:08:24,600 --> 01:08:25,600
Yes.

1119
01:08:25,600 --> 01:08:26,960
OK.

1120
01:08:26,960 --> 01:08:34,720
And it's the number probably one of the top things that the IRS will flag and audit you

1121
01:08:34,720 --> 01:08:35,720
on.

1122
01:08:35,720 --> 01:08:42,280
Oh, I have one that maybe you can give some clarification on cleaning supplies.

1123
01:08:42,280 --> 01:08:48,120
I don't care if you're working out of your home or like me in a warehouse and toiletries.

1124
01:08:48,120 --> 01:08:50,080
Are those?

1125
01:08:50,080 --> 01:08:57,400
So cleaning supplies, if you're working out of your home, cleaning supplies for your items

1126
01:08:57,400 --> 01:08:59,600
or your office space.

1127
01:08:59,600 --> 01:09:00,600
Absolutely.

1128
01:09:00,600 --> 01:09:03,880
We'll just leave that at that.

1129
01:09:03,880 --> 01:09:08,080
I mean, that's like a little bit like I can't write off the toilet paper I use.

1130
01:09:08,080 --> 01:09:09,080
Right.

1131
01:09:09,080 --> 01:09:12,320
So it's like kind of a gray area, I guess, when it comes to that type.

1132
01:09:12,320 --> 01:09:15,360
I guess the overall thing is you can't get crazy with some of this stuff.

1133
01:09:15,360 --> 01:09:16,360
Right.

1134
01:09:16,360 --> 01:09:17,360
Like, I mean, come on now.

1135
01:09:17,360 --> 01:09:18,360
It's like I wear it.

1136
01:09:18,360 --> 01:09:19,640
It's a reason she's giggling over there.

1137
01:09:19,640 --> 01:09:24,440
I wear a ten thousand dollar robe during the podcast that I got to buy and write off.

1138
01:09:24,440 --> 01:09:28,080
It's crazy things that go into it.

1139
01:09:28,080 --> 01:09:33,600
My dogs are part of my branding and they're my security system.

1140
01:09:33,600 --> 01:09:36,960
I mean, well played, Cheryl.

1141
01:09:36,960 --> 01:09:37,960
Well played.

1142
01:09:37,960 --> 01:09:40,840
This is why she gets paid the big bucks.

1143
01:09:40,840 --> 01:09:45,720
Where can people find you, Cheryl, for those out there wondering, like, where can you find

1144
01:09:45,720 --> 01:09:50,640
what groups are you in, like what kind of services you offer and things like that?

1145
01:09:50,640 --> 01:09:53,640
So for starters, I'm in y'all's group.

1146
01:09:53,640 --> 01:09:57,000
And she's over in the member's discord on the YouTube.

1147
01:09:57,000 --> 01:09:58,000
Yep.

1148
01:09:58,000 --> 01:09:59,600
And I'm not even a bookseller.

1149
01:09:59,600 --> 01:10:01,080
So but I am a member.

1150
01:10:01,080 --> 01:10:06,720
I am a paid member of the of that particular group.

1151
01:10:06,720 --> 01:10:11,040
I am in tech and sports reseller greatness group.

1152
01:10:11,040 --> 01:10:16,120
I'm in Chris Lynn's reseller Nirvana group.

1153
01:10:16,120 --> 01:10:20,080
I am in my simplified accounting with Cheryl group.

1154
01:10:20,080 --> 01:10:25,520
And so I have I have my own Facebook group that is free for anybody to join.

1155
01:10:25,520 --> 01:10:27,400
I will answer questions in there.

1156
01:10:27,400 --> 01:10:30,960
Please don't DM me.

1157
01:10:30,960 --> 01:10:39,840
I have my YouTube channel, which is YouTube at Saw Cheryl, S-A-W Cheryl, C-H-E-R-Y-L.

1158
01:10:39,840 --> 01:10:46,240
So most of my stuff is at Saw Cheryl in some way.

1159
01:10:46,240 --> 01:10:51,040
I think Instagram, which I keep forgetting even exists, is simplified accounting with

1160
01:10:51,040 --> 01:10:55,040
Cheryl, like all spelled out.

1161
01:10:55,040 --> 01:11:00,320
I have a TikTok that I'm desperately trying to figure out how to do.

1162
01:11:00,320 --> 01:11:04,800
But YouTube is my YouTube and Facebook are my favorites.

1163
01:11:04,800 --> 01:11:09,760
I go live Monday through Friday for a healthy chat.

1164
01:11:09,760 --> 01:11:13,840
And it's healthy mind, healthy body, healthy business, healthy finances.

1165
01:11:13,840 --> 01:11:24,280
It's like so you this morning I was on the treadmill while I was holding on to my laptop.

1166
01:11:24,280 --> 01:11:28,320
Yeah so and I have a paid membership group too.

1167
01:11:28,320 --> 01:11:31,680
And all of her links will be down below if you're over on the YouTube or if you're listening

1168
01:11:31,680 --> 01:11:35,840
on the podcast and you come over to the YouTube video, all her links will be pinned down in

1169
01:11:35,840 --> 01:11:40,160
the comments section so you'll be able to easily find out where she is.

1170
01:11:40,160 --> 01:11:41,160
I'm curious.

1171
01:11:41,160 --> 01:11:45,720
One thing when it comes to like your services, it's already February as a reseller.

1172
01:11:45,720 --> 01:11:47,840
I have no idea what I'm doing with taxes.

1173
01:11:47,840 --> 01:11:52,160
Is it too late to kind of reach out to you and have you help me and file my taxes?

1174
01:11:52,160 --> 01:11:53,880
It is not.

1175
01:11:53,880 --> 01:12:01,720
I still have room in my books for taxes, but I'm only doing taxes from February to March

1176
01:12:01,720 --> 01:12:03,400
if you want them in on time.

1177
01:12:03,400 --> 01:12:13,040
So I suggest if you want me to do them, I have a link in my link tree or you can reach

1178
01:12:13,040 --> 01:12:14,040
out.

1179
01:12:14,040 --> 01:12:17,240
I can give it to you guys either way.

1180
01:12:17,240 --> 01:12:20,800
But it's it you make an appointment.

1181
01:12:20,800 --> 01:12:23,160
It's not a face to face appointment.

1182
01:12:23,160 --> 01:12:26,680
It's a deadline for you to have your stuff into a drop box.

1183
01:12:26,680 --> 01:12:30,440
Once you make the appointment, I send you a drop box.

1184
01:12:30,440 --> 01:12:38,040
I send you I put a cheat sheet for a checklist into the drop box.

1185
01:12:38,040 --> 01:12:42,040
And that's the date that I plan on getting started.

1186
01:12:42,040 --> 01:12:47,040
So if you don't have your stuff to me, you forfeit your fifty dollar deposits.

1187
01:12:47,040 --> 01:12:50,160
Got to keep people accountable.

1188
01:12:50,160 --> 01:12:51,160
Yeah.

1189
01:12:51,160 --> 01:12:52,160
Yeah.

1190
01:12:52,160 --> 01:12:53,160
All right.

1191
01:12:53,160 --> 01:12:54,160
I think we're going to wrap it up there.

1192
01:12:54,160 --> 01:12:57,680
Cheryl, we appreciate you spending time with us and telling us the facts of taxes, not

1193
01:12:57,680 --> 01:13:01,040
just the crazy nonsense you hear out there on the Internet.

1194
01:13:01,040 --> 01:13:03,800
So yeah, if you're interested, you know, make sure you check out the link down below and

1195
01:13:03,800 --> 01:13:06,520
we'll talk to everybody in next week's episode.

1196
01:13:06,520 --> 01:13:07,520
Thanks.

1197
01:13:07,520 --> 01:13:10,000
Appreciate being there.

1198
01:13:10,000 --> 01:13:13,640
Thanks for listening to another episode of the resellers mindset podcast.

1199
01:13:13,640 --> 01:13:18,080
Today's full episode and all previous episodes are available to all YouTube members along

1200
01:13:18,080 --> 01:13:20,800
with the weekly zoom call and private discord.

1201
01:13:20,800 --> 01:13:24,880
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