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J & R
I understand your position but I don’t do the employee thing. Originally, we had an S Corp and paid employee taxes. What a serious pain in the a$$ on several levels. Waaaayyyyy easier to 1099 somebody as an independent contractor.one thing the IRS excels at is getting their employer taxes. It’s something you never want to accidentally under pay. We farmed that all out of course, but it just ends up being an added headache and expense.
BTW, I generally mention your forum on my infrequent YouTube videos. I am trying
PS. Your caller’s wife sounds like a controlling, self absorbed jerk. Maybe I got triggered here. Lol.
Blech. PayPal Capitol has driven my partner crazy to the point he programmed a way to pull the money before Capital could get it. ( do NOT do this). We didn’t get in trouble but I nipped it in the bud and PayPal frowny faces this.
I would have preferred 15% or 20% but he went with 25%. I would really hate 30%. There is no pay ahead penalty, btw. I rather have the flexibility to decide whether to pay ahead.
PayPal Capital is a Horrible idea if you don’t understand it. If you choose it at their 25% rate, that means they will grab 25% of your sales every day. Let’s say you transfer the whole amount before PayPal Capital takes their share. Next day they make up for that. It can be painful to the unwary.
If you aren’t consistent with incoming sales, you will be buried and people have croaked doing loans this way. If you aren’t a professional full time seller or a consistent poster this probably is a bad idea. Of course, PayPal potentially screens out sellers From getting a loan by virtue of their sales performance over time.
I actually recommend you borrow the minimum as their is no pay ahead penalty (pretty sure). This leaves you much more liquidity.
Brian when we sell a high dollar item or are nervous in general we use Shipsurance.
I went thru this antique parasol phase and no matter how well packed, it seemed like the really expensive ones got destroyed in the mail.
Shipsurance was a champ about it and we still use them when it’s suitable.
Funny but horrible story, in my infinite wisdom years ago, I was deciding between three different professors for choosing a tax course for a graduate level degree I was working on.
I chose a professor that I was assured was “easier” than the others and this professor even handed out an outline for the class, so you “only” needed to “follow along”. No need to do my own outline? Bell curve? “Easiest”? Two tests for the grade? Sign me up!
Soooooo, this kindly old professor hands out the midterm exam.
Multiple Choice exam, based on 8 fact patterns.
Here were the choices: A thru F.
D. was All of the Above.
E. was none of the above.
F. was often a combo of A. and B, A and C etc.
And, oh by the way, if you screwed up the fact pattern you generally didn’t get 1 wrong on the fact pattern, you got ALL of them wrong because your numbers were off.
Iceberg meet smug dumba$$es. It was a bloodbath. I ended up skating the course with a C, but ohhhh that moment of realization when u realize you are so frakked you can’t even take a bus Back to frakked.
So indeed, I learned to take the act of figuring out the tax code a lot more seriously.
Anyway hope that amuses.
Well two concerns:
This is probably going to show up on your business taxes somehow, somewhere so are there any tax implications depending on the how’s and what’s.
Constructions generally get you 39 years of depreciation and are considered permanent structures, which is often not as beneficial to a business as a modular structure. These can fall under tangible property as long as they fall under the “assembled/ dismantled” rule of thumb. Then your business can take 7 years depreciation instead, and the shorter depreciation allows you to realize a greater tax benefit in the short term.
Or under section 179 of the Code as you probably already know, u can deduct the cost of certain types of property on income taxes as an expense, rather than having the cost of the property to be capitalized and depreciated. So modular offices, racks and office furniture would be handy if it can be fit here.
It always helps to Tax Design Before hand. Very roughly, a $50,000 project could lead to a major difference in savings overall.
2. Property Tax etc.
Probably not a big deal in your rural area, but if you do this and get reassessed your property tax goes up.
This is good news if you want to play deep and try to re-finance the whole shebang a la Grand Designs.
Yeah I now like the sound of this.
Anyway, it’s not too late to sit down and design the tax stuff on this. If it’s not being done under an LLC or a partnership, I highly recommend you sit down and bang out the numbers to see what the scenarios are. You need to maximize that Before the Line hodgepodge. You can still do this AND build, pretty sure.
I think your price works. It’s a relatively common tiki, but give it time and it will sell.
Oh, one more thing, my very humble advice is when building major structures on one’s property, one must think of one’s leverage and debt to income. It’s also important to think about property value in light of that.
Now before getting annoyed, who is the person that bought an H2 under the pretext it was tax deductible (which it SO totally was at the time), THIS GIRL. Okay, so I’m not Miss Frugal. I can’t help it, I was car deprived as a teen.
But I do know good old fashioned leverage and making business projections. Given the uncertainty of two sources of income, does a two story building work, if the economy barfs for about 6 months? If you built that and suddenly had to sell off, would it be a blood bath? Have you run the tax numbers in terms of how that can be used to help at tax time, or hurt.
So channeling my dad who bought cars in bizarre colors to get a discount for that in an effort to be ultra frugal: If I were you two, knowing nothing else, stick with needs and not wants. You can always add or expand in a few years. Stick with the original purpose.
Best Wishes.
Couple of quick notes. We have been selling online for over 15 years. I don’t mean to sound like a crotchety old timer, but you won’t make it selling online without diversification.
Quite frankly, people sell the easiest, readily available crap to sell. I think that includes contemporary clothing, video games, electronics and book related items.
In my experience the key to survival is a balance between, antiques, collectibles, contemporary and media. Having a niche that you can get known is also helps.
IF this is a competition problem, waiting them out is the name of the game: most businesses fail. Sad to say but true.
Personally, I think it’s two problems: other places to shop like Poshmark, Allmodern, Etsy, open Sky, 1stdibs and many more means buyers are looking across channels and being more savvy.
Worse though is the R word. I’m a Econ nerd. I’m pretty sure but for the monetary pumping of the Fed, we would be in a Recession.
Ultimately, I think we are getting into a deflationary environment. Compound that with the fears stirred up on both sides of the political spectrum, and people are not spending. Excuse the humor but college snowflakes are still freaking out, while most of the NRA is still stocking up on ammo and survival gear. There are too many distractions. Meanwhile, the grass gets stomped on and suffers. Either way, spending is down.
IMO, diversification in what you sell, where you sell, including overseas, and multi channel efforts basically is going to become the norm.
Finally, we are doing a lot of Oculus Rift tinkering. When the time comes, I want to be using 3-D when it’s viable. There’s some really awesome free stuff to check there, btw.
Cool. I even embedded my video. Sniff so proud of myself. Hey thanks for the forum.
Aww, dont give up. I try to copy mine to clipboard just in case. I’m not always consistent though. Please try again. 🙂
Oh yay, nice to see comments open. Thanks!
Here is my eBay adventures in what Sold:
Hi, okay, I checked again.
There is no Reply button and at the bottom with yellow background it says it is basically locked and not accepting comments.
Is there a “privilege” issue. Maybe you have higher rights than me, so aren’t seeing it?
Help.
