2020 RESELLER TAXES. Every number you need to know.
Published on: December 10 2022 by RockstarFlipper
In the world of reselling, taxes can be a confusing and overwhelming topic. But it's essential to understand the numbers behind reseller taxes to ensure you're filing correctly and avoiding any legal issues. In this article, we'll break down every number you need to know for 2020 reseller taxes.
Important Numbers to Know:
1. Sales Tax Rates - Sales tax rates vary by state and even by city or county. It's essential to research the sales tax rate for your location to ensure you're charging the correct amount to your customers.
2. Taxable Sales - Taxable sales are the total amount of sales that are subject to sales tax. This includes both tangible goods and some services.
3. Resale Certificates - Resale certificates are necessary to prove that you're a reseller and not the end consumer. These certificates exempt you from paying sales tax on items you plan to resell.
4. Use Tax - Use tax is a tax on items purchased outside of your state but used within your state. It's important to keep track of these purchases and pay the appropriate use tax.
5. Tax Deductions - As a reseller, you may be eligible for tax deductions on business expenses such as shipping, storage fees, and office supplies. Keep track of these expenses throughout the year to maximize your deductions.
Understanding reseller taxes may seem daunting, but with the right information and tools, you can file correctly and avoid any legal issues. Remember to research your sales tax rate, keep track of taxable sales and purchases, obtain resale certificates, and take advantage of tax deductions. By knowing these essential numbers, you can navigate the world of reseller taxes with confidence in 2020.
Table of Contents About 2020 RESELLER TAXES. Every number you need to know.
2020 RESELLER TAXES. Every number you need to know.
Tax Filing Tips for Resellers and Small Business Owners
- Video disclaimer and advice on seeking professional help from a CPA
What to Prepare for Your CPA or Tax Software:
- List of necessary items for filing federal income taxes
- Gross sales and how to calculate it
- Cost of goods sold
- Dues and subscriptions/fees and subscriptions for websites and services
- Materials used up within 12 months
- Equipment intended to be used longer than 12 months
- Materials used in production or presentation of products
Important Dates:
- Extension for filing federal taxes until July 15th, 2020
- Quarterly taxes for Q1 and Q2 due by July 15th, 2020
- Penalties for not filing quarterly taxes if you owe $1
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