How to deduct PERSONAL ITEMS in your reselling business

Most resellers get their start by selling their own personal items online. Are you allowed to deduct those items? And if so, how much is the deduction for your personal stuff? Watch and find out!

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TIMESTAMPS:

0:00 - Mark explains how clients started by selling personal items online.
0:15 - Many clients discovered selling was easier and profitable.
0:19 - The key question: How to account for personal items in a business.
0:31 - Introduction to Cost of Goods Sold.
0:32 - Mark Two, CPA, assists resellers with tax and business growth.
0:36 - Deducting business expenses and cost of goods sold.
0:46 - Example: T-shirt bought for $6, sold for $25.
1:08 - Selling personal items: determining deductions.
1:20 - The process is not exact; showing calculation method is crucial.
1:39 - Assign cost value: lower of original cost or market value.
1:56 - Market value example: Using $10 if market value is lower than the original cost.
2:38 - Market value may vary; consider a range based on data.
3:04 - Difficulty in finding market value for older or rare items.
3:48 - Example of using original cost if market value is lower.
4:09 - Original cost vs. market value impacts deductions.
4:32 - Use best estimate if exact records are unavailable.
5:27 - Importance of deducting legitimate business expenses.
5:39 - Handling high-value items vs. everyday goods.
6:09 - Exceptions for electronics and items with changing values.
6:37 - Tax situations are often ambiguous; confidence in deductions is key.
6:55 - Viewers are encouraged to ask questions.
6:58 - Subscribe for more tax tips and resources.
7:17 - Outro [Music]