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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12437
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Trying to figure out how much to save - just became a

Customer Question

Trying to figure out how much to save for taxes - just became a consultant with a clothing company, LuLaRoe.
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: We buy all of our inventory at Wholesale from the company and then resell it at in home parites.
JA: Is there anything else important you think the Accountant should know?
Customer: parties
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

What you have here is a cost of goods sold accounting ... If you haven't set you business up as an LLC or corporation, you'll just use oyur schedule C (an attachment to the 1040 tax return, to report oyur income and expsnese).

...

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

..

The clothes purchase (ond other expenses) will be deducted from your gross receipts (sales) to come down to a profit number.

...

THis profit number is ***** income tax (and social security and medicare tax) is paid on.

...

That profit (or loss) will flow from the Shedule C on line 12 of your tax return and add to (or reduce) other income in the household.

...

Then your income is taxed as any other income (based on how you file - married filing jointly, single, etc)

Expert:  Lane replied 1 year ago.

If you'dlike to estimate your total income, cost of the clothes, your other expenses (travel to the parties, items purhased as promotional materials, home office?, rent, computer costs, etc) ... and then how you file (maried filing jointly, single,etc) along with any other income in the household - I can run a projection for you

Expert:  Lane replied 1 year ago.

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

JustAnswer will not credit me for the work unless you do.

...

Thank you!

Lane

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.