| Discussion Forum: Thread 319229 |
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| | | Author: | magicalbricks24  | | Posted: | Mar 31, 2022 21:53 | | Subject: | Taxes Cost More Than Expected *SALE* | | Viewed: | 145 times | | Topic: | Off Topic | |
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| BL Sellers (and buyers),
Experienced sellers are probably going to find this humorous, but I
just got back my taxes for 2021 (my first full year selling). I have mainly been
doing this as a hobby, but have made quite a bit of money considering this is
a "side hustle". I have been putting most of my income back into inventory, and
(in my defense) didn't think I would have to pay this much as last year I
only had to pay in a few hundred dollars. This year I owed nearly $3000, which
was most of my non-inventory value, leaving me with less than I want to have
in my business account. Luckily I have thousands in inventory value that is either
not sold or not listed, so if anyone is interested in buying bulk used, minifigs,
bulk Galidor, or anything in particular contact me and I'll see if I can
help.
Also, US-based sellers, how much (roughly) of your profits do you put aside that
will go towards what you owe in taxes. I am going to ask my accountant and others
that I know that sell online, but hearing from others that do the same thing
may be helpful.
Thanks
-- Nicholas
magicalbricks24
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| | | | | Author: | macebobo | | Posted: | Mar 31, 2022 23:11 | | Subject: | Re: Taxes Cost More Than Expected *SALE* | | Viewed: | 50 times | | Topic: | Off Topic | |
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| In Off Topic, magicalbricks24 writes:
| | BL Sellers (and buyers),
Experienced sellers are probably going to find this humorous, but I
just got back my taxes for 2021 (my first full year selling). I have mainly been
doing this as a hobby, but have made quite a bit of money considering this is
a "side hustle". I have been putting most of my income back into inventory, and
(in my defense) didn't think I would have to pay this much as last year I
only had to pay in a few hundred dollars. This year I owed nearly $3000, which
was most of my non-inventory value, leaving me with less than I want to have
in my business account. Luckily I have thousands in inventory value that is either
not sold or not listed, so if anyone is interested in buying bulk used, minifigs,
bulk Galidor, or anything in particular contact me and I'll see if I can
help.
Also, US-based sellers, how much (roughly) of your profits do you put aside that
will go towards what you owe in taxes. I am going to ask my accountant and others
that I know that sell online, but hearing from others that do the same thing
may be helpful.
Thanks
-- Nicholas
magicalbricks24
|
I personally set aside 30% of my gross profit both for federal and state income
and self employment taxes.
Make sure you are taking all of the deductions that are available to you on Schedule
C.
This is my first year and 30% was a bit much, but I have some 179 expenses that
kept me from owing too much. However, IMO, it is better to have too much than
too little to pay uncle.
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| | | | | Author: | ccroxton | | Posted: | Mar 31, 2022 23:12 | | Subject: | Re: Taxes Cost More Than Expected *SALE* | | Viewed: | 38 times | | Topic: | Off Topic | |
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| In Off Topic, magicalbricks24 writes:
| | BL Sellers (and buyers),
Experienced sellers are probably going to find this humorous, but I
just got back my taxes for 2021 (my first full year selling). I have mainly been
doing this as a hobby, but have made quite a bit of money considering this is
a "side hustle". I have been putting most of my income back into inventory, and
(in my defense) didn't think I would have to pay this much as last year I
only had to pay in a few hundred dollars. This year I owed nearly $3000, which
was most of my non-inventory value, leaving me with less than I want to have
in my business account. Luckily I have thousands in inventory value that is either
not sold or not listed, so if anyone is interested in buying bulk used, minifigs,
bulk Galidor, or anything in particular contact me and I'll see if I can
help.
Also, US-based sellers, how much (roughly) of your profits do you put aside that
will go towards what you owe in taxes. I am going to ask my accountant and others
that I know that sell online, but hearing from others that do the same thing
may be helpful.
|
| |
Thanks
-- Nicholas
magicalbricks24
|
In the US, personal income tax is capped at 37%, but that only applies to taxpayers
with taxable income above $539,900 for single filers and above $647,850 for married
couples filing jointly. There are 7 levels of taxation. Ask your accountant about
donations off-setting the taxes for this coming year. Those non-Lego pieces that
you can't sell on here make a handsome tax donation to a non-profit youth
group or other organization.
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| | | | | Author: | Nubs_Select | | Posted: | Mar 31, 2022 23:22 | | Subject: | Re: Taxes Cost More Than Expected *SALE* | | Viewed: | 62 times | | Topic: | Off Topic | |
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| I guess we are in the same boat. I didn't think I collected that much gst/hst
but once I added it up I have to pay nearly $3.5K and every time I save up enough
a different bill comes up that I have to pay. Still waiting for QuickBooks to
fix my account so I can find out how much I owe in other tax 
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| | | | | Author: | Yo_Yo_Flamingo | | Posted: | Apr 1, 2022 09:07 | | Subject: | Re: Taxes Cost More Than Expected *SALE* | | Viewed: | 50 times | | Topic: | Off Topic | |
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| In Off Topic, magicalbricks24 writes:
| | BL Sellers (and buyers),
Experienced sellers are probably going to find this humorous, but I
just got back my taxes for 2021 (my first full year selling). I have mainly been
doing this as a hobby, but have made quite a bit of money considering this is
a "side hustle". I have been putting most of my income back into inventory, and
(in my defense) didn't think I would have to pay this much as last year I
only had to pay in a few hundred dollars. This year I owed nearly $3000, which
was most of my non-inventory value, leaving me with less than I want to have
in my business account. Luckily I have thousands in inventory value that is either
not sold or not listed, so if anyone is interested in buying bulk used, minifigs,
bulk Galidor, or anything in particular contact me and I'll see if I can
help.
Also, US-based sellers, how much (roughly) of your profits do you put aside that
will go towards what you owe in taxes. I am going to ask my accountant and others
that I know that sell online, but hearing from others that do the same thing
may be helpful.
Thanks
-- Nicholas
magicalbricks24
|
Bulk Galidor- words that would send shivers down some people's spines
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USA, Pennsylvania
Canada, Ontario