I hope this question is ok here, wasn't sure where else to put it. With the new year, comes a new time for taxes. I was working on getting a business with my woodworking going last year, however that didn't quite happen. A few one-off sales here and there, but getting a web site up, turning enough product to really have enough inventory for a web site or Etsy/Ebay shop, etc. didn't happen either.
So, I'll really be getting this new business going this year, starting probably with an Etsy store. Mostly because they take care of all the taxing and whatnot for you, which is quite convenient (if a bit expensive, I think they take a 30% cut!) Thing is, even though I am starting my business legitimately this year, I spent a heck of a lot of money (and sales tax!) on building up stock and supply last year. I have a lot of wood for turning in general, a ton of pen blanks, quite a lot of pen kits, not to mention some big new tools like a bandsaw and drill press (although I am pretty sure its appropriate to start writing those off once you actually start selling product created with it?) I also have spent money a fair amount on electricity last year, and a full third of my garage space is completely dedicated to this business.
I'm definitely in need of a tax guy to help me figure all of this out, especially the stock and supply bit. I am honestly not sure if I can/should/must deal with the cost and taxes of buying all the stock and supply for my 2021 taxes? Or do I defer on that, much like I do (I think?) for the larger machines? If I don't properly account for all the money and tax spent on supply and stock (I had some official document issues last year that I wasn't able to get fully resolved until November, so I don't have a tax id yet for any kind of tax exempt purchasing...that is something I'm working on and hope to have ASAP) in the year I bought, I am not sure if I lose the opportunity to take any deductions or whatnot for it all? Anyway...
I live in Colorado, south of Denver. I contacted one guy last year, who was hard to get ahold of and never called me back when he said he would... I don't know if any other Colorado turners know of a great tax guy who knows this kind of business who could help me? I have always done my own personal taxes, and I'm reasonably good with money, but this is taking things to a whole new level of complexity I'm definitely not ready for myself, and there is just too much law for me to wade through while still working a day job, and also while still trying to build up an inventory for an online store, while also trying to design and build my own web site, etc. etc.
Thanks!
So, I'll really be getting this new business going this year, starting probably with an Etsy store. Mostly because they take care of all the taxing and whatnot for you, which is quite convenient (if a bit expensive, I think they take a 30% cut!) Thing is, even though I am starting my business legitimately this year, I spent a heck of a lot of money (and sales tax!) on building up stock and supply last year. I have a lot of wood for turning in general, a ton of pen blanks, quite a lot of pen kits, not to mention some big new tools like a bandsaw and drill press (although I am pretty sure its appropriate to start writing those off once you actually start selling product created with it?) I also have spent money a fair amount on electricity last year, and a full third of my garage space is completely dedicated to this business.
I'm definitely in need of a tax guy to help me figure all of this out, especially the stock and supply bit. I am honestly not sure if I can/should/must deal with the cost and taxes of buying all the stock and supply for my 2021 taxes? Or do I defer on that, much like I do (I think?) for the larger machines? If I don't properly account for all the money and tax spent on supply and stock (I had some official document issues last year that I wasn't able to get fully resolved until November, so I don't have a tax id yet for any kind of tax exempt purchasing...that is something I'm working on and hope to have ASAP) in the year I bought, I am not sure if I lose the opportunity to take any deductions or whatnot for it all? Anyway...
I live in Colorado, south of Denver. I contacted one guy last year, who was hard to get ahold of and never called me back when he said he would... I don't know if any other Colorado turners know of a great tax guy who knows this kind of business who could help me? I have always done my own personal taxes, and I'm reasonably good with money, but this is taking things to a whole new level of complexity I'm definitely not ready for myself, and there is just too much law for me to wade through while still working a day job, and also while still trying to build up an inventory for an online store, while also trying to design and build my own web site, etc. etc.
Thanks!