TAX SEASON IS COMING UP!!! I know what you’re thinking, what do I do if I made money one Poshmark? Do I need to file taxes? How do I do it? WHAT DO I DO?!?!?! Short of having a panic attack, we are here to help and guide you to some basic answers to get you on your way to staying in the clear when it comes down to tax time! Just as a note, this blog post is just BASIC info. This isn’t going to go into too much depth, because everyone’s situation is different, and unique. But if you’re looking to get more specific questions answered, there will be info at the end of this post!
This has been one of the most asked questions and requested blog posts as of late. So I was able to compile a small questionnaire featuring Kreithchele Barnard (@krangele on Poshmark) who was a workshop speaker at this past 2016 Poshfest, she is also a CPA (inactive) with an MBA and elective studies in Taxes and Business Strategy. Currently she is teaching accounting at Santa Ana College in Santa Ana, CA and is working on her online course Accounting For Your Fashion Resale / Boutique. Her workshop was the most sought after at Poshfest but unfortunately was cut rather short due to delays. So thankfully, I have her here with me answering a few basic questions that I have accumulated from other users to help you decide what to do come tax season.
KB – Yes. Anytime you have income from any source you should include in your income. However, if you have a loss be careful. The IRS doesn’t like to see losses on a schedule C to offset income.
Formula –> Sales – Expenses = Income / Loss
KB – Pretty much everything – anything you buy that goes into your business. Office / shipping supplies, cell phone bill, gas, etc. If you go to an event that is Poshmark related such as a Meetup, or Poshfest – registration fees, hotel, travel, etc.
KB – Depends on where you’re at -if you’re doing it as a hobby, for fun or don’t care what you make, then it’s not important. But if your activities are headed towards business, then it’s important so that you know what to report for income taxes and sales taxes. If you’re selling stuff from your own closet and basically selling it at less than you bought it for then it’s really a hobby. But if you start buying stuff with the intention of selling it for profit, then you’re going into business mode. This includes thrifting. If you go to Goodwill and buy something with the intent to resell then you’re really into business mode.
KB – If you are conducting ANY type of business you need a business license. So get one when it’s no longer a hobby and when you’re buying stuff to resell/flip.
KB- Depends on the type of entity your activities or business is – if it’s a sole proprietorship, LLC, or S-Corp.
HGF- Items above aren’t covered here in detail at HealthyGirlFashion.com but if you’d like to know more, then you can pre-purchase Kreithchele’s Accounting For Your Fashion Resale / Boutique Online Course.
KB – The course will be available in May and already has an active private Facebook Group.
HGF – For those who have purchased the course, they can ask questions, have discussions, etc. She also does a Facebook livestream for any questions that anyone in the group has. The course is $147 + $25 for Facebook Group access, but currently taking pre-orders for $62 (Course & FB Group) with full access to the Facebook group and discussions NOW. The pre-order price of $62 will be available until March 2017 so book now!
HGF – There you have it ladies! Sign up as soon as you can to get that course, because we all know you’re thrifting and selling, and making some big cash! Don’t neglect your taxes! I personally have already signed up for the course and am ready to go, so I hope you sign up too! I mean, where can you get someone readily available to answer your accounting/tax/business questions, get a quick answer right away, with a set course, Facebook group & discussions + is a Posher herself?!
I personally would like to thank Kreithchele for answering a few questions for us here are HGF. If you have some burning questions, put them down below in the comments I’ll get them answered as quick as I can!
Also- please put down your closet name below! We love checking out your closets!