TAS 288 : Get Ready for TAXES - Deductions Tips - Sales Tax - Mistake Prevention

  It’s nearing the end of the year and most sellers are so busy preparing for a great fourth quarter that they aren’t thinking a bit about preparing for tax season. That’s pretty normal but could be a mistake. You’ve got to begin thinking through your tax liability a long time before tax season comes. That’s why Scott is doing this episode with his friend and business accountant, Josh Bauerle. Josh works with lots of online entrepreneurs and Amazon sellers and has a great deal of experience dealing with the tax implications of those kinds of businesses. You’re going to learn some great things from Josh on this episode so make sure you carve out the time to listen and get yourself ready for tax season. One of the biggest tax mistakes Amazon sellers make has to do with inventory. As a seller of online products you naturally have inventory. Inventory is the products you purchase to resell through your online platforms. You can write off your inventory when it comes to taxes - BUT inventory for tax purposes is NOT what you might think it is. You’ve got to know what the IRS considers to be inventory, how it handles these things, and how it requires you to keep your inventory records. Josh Bauerle is an expert on these things and he’s got a very clear explanation of how you need to handle your inventory issues - and he shares it on this episode. Sales tax is a real headache for eCommerce sellers. Do you know how to handle it? Every person or company who sells products online is liable for sales tax on those products. It's not only a federal issue, it also varies with each state in which the products are sold. If you spend even a small amount of time thinking about that you’ll realize that the potential sales tax liability for an Amazon private label seller can get pretty heavy, pretty quickly. And on top of all that, every state handles the rules differently. You’ve got to get this one figured out though - it could make or break your business. CPA Josh Bauerle is Scott’s guest on this episode and he’s got lots of wisdom for you regarding taxes and tax liability. Why it’s legally vital for you to keep business funds separate from personal funds. Many people start out in business flying by the seat of their pants. Every business expense and every personal expense seem to be the same thing because they are living off of the money they make from the business. But today’s guest, Josh Bauerle is a CPA who has worked with business people for a long time and he’s got some horror stories about the kind of things that can happen when you co-mingle your personal and business expenses. On this episode, he highlights the reasons you need to keep those funds separate and how you can easily track and coordinate them to keep you out of tax trouble. This section alone is worth the time it will take you to listen. Are you getting all the business tax deductions that are rightfully yours? When you start a business of any kind you’re going to spend money for a variety of things that go into the operation of your business. From office supplies, to educational resources, to trips, you can legally and ethically write off many of the expenses you have in order to decrease your tax liability. But there are guidelines for how you do it that you have to understand so that you don’t get yourself in trouble with the IRS. Find out how to do tax deductions the right way from Josh Bauerle, CPA on fire, on this episode of The Amazing Seller. OUTLINE OF THIS EPISODE OF THE AMAZING SELLER [0:03] Scott’s introduction to this episode of the podcast with Josh Bauerle. [4:00] Josh’s experience with Amazon clients so far. [6:15] How you should track inventory for tax purposes. [11:18] The variety of business entity options you could form for your business. [