Wholesale 101

Most online sellers I have chatted with do not understand how taxes work in general, let alone how write-offs work and how important they are. Write offs are so important, that in your first several years of business you likely will get a LARGER tax return check because you have a lot of costs to get rolling! Here’s a simple example of how writeoffs work that we used in yesterdays article:Damaged inventory is a TAX WRITEOFF. It goes in the “Loss” Category. Let’s say you pay $1,000 for 100 piece …

Getting completely damaged inventory always sucks. There’s never a time when you get a broken item and celebrate. Ever. BUT you should NOT be throwing away your damaged pieces! Here’s what you need to do:Damaged inventory is a TAX WRITEOFF. It goes in the “Loss” Category. Here’s a really super quick, simple explanation of how important it is to write-off your losses. Let’s say you pay $1,000 for 100 pieces of clothing. This means you paid $10 per piece.Let’s say 20 pieces are totally unse …