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How to Make $10,000 Per Month with Amazon FBA [Full Business Breakdown]

September 11, 2019


what’s going on guys it’s good to be
back so today we’re gonna go through yet another online arbitrage expenses
tutorial now as you see if you look at some of these numbers that are on the
screen right now I made a little bit less than the last month of August and
actually spent a little bit more so my margins were you know my profit margin
wasn’t as good although it’s still pretty good we’re gonna run through all
that here in a second I think that these are good you know examples this is
probably what is September the ninth month of the year so this is the ninth
time I’m running through expenses and an expenses tutorial to show you the
backend of how the business model actually works and exactly you know what
you’re spending you know what you can deduct and all sorts of things and then
what you have to you know what your take home pay essentially is and you know you
know how much you can pay taxes on I think this is a really good way to kind
of show the ins and outs not just like the tutorials of like sourcing stuff but
also the backend of the business and how I actually run through taxes and
expenses and how I calculate my take-home pay and my taxes now I didn’t
believe it or not before we get into this I actually didn’t have that many
expenses this month it wasn’t like the last month I didn’t deduct anything
relative other than the normal commissions and fees so you’ll see the
1:29 right here on the screen that’s basically outside of the cost of goods
which we’re gonna get into here in a second all that I basically deducted you
know in the month of September and just ran through all my basically statements
I usually use my my business credit card and sometimes my business bank account
to make charges you know whether that’s on Amazon or I’m you know ordering boxes
or wherever out but I thought that this was a good opportunity because I didn’t
have that many expenses this month to show you other ideas of certain things
that you might be deducting in your business now a lot of these things are
gonna be tailored the examples that I’m gonna give you are gonna be tailored to
online arbitrage or doing you know when an ecommerce sourcing business like that
however this just gives you examples I want to say always consult with an
accountant or a CPA when you’re doing this do your due diligence there are
certain things that you can deduct it’s going to depend on state to state and
all sorts of other things but I think that this is a really good you know
opportunity to show you different things that I am under the impression that
depending on your circumstance you can deduct from your business because the
more you deduct obviously the less taxable income you know so
obviously you’re paying less taxes and your profit margins are higher so this
is a good way to kind of knock down your tax bill now before we get into the
specific numbers and I go through specific examples of certain things that
you can deduct versus some things that you might not be able to I do want to
let you guys know that I’m opening up the course to five more people so I’m
gonna give you five more coupon codes I’ll pop the coupon code up on the
screen right now the first five people to claim that coupon code get the course
fifty percent off and as always guys the course online arbitrage pro is the first
link in the description now that we got that out of the way let’s talk about the
numbers and the specifics here and I’ll run through some examples of certain
things that you can deduct on this business and other similar businesses
like it so if you look down at the advertising that’s pretty
self-explanatory in the last video in August’s video and
I’ll drop the entire playlist up in the right hand corner right now if you want
to check it out I’ll also link it in the description below I basically talked
about in August how I ran advertising which was you know Amazon PPC for my
arbitrage products now 99.9 percent of the time you’re not gonna do this I was
just testing it out but that’s basically an example of advertising if you’re
running PPC and also if you’re running other similar businesses you know you
can be doing Bing ads Google Adwords maybe YouTube ads and other similar
stuff like that you know Facebook ads and so on and so forth so car and truck
expenses now that’s something that you can actually deduct your mileage if you
you know you have a car if you’re if you’re leasing a car and making payments
on your car lease I’m under the impression that you can’t also deduct
the mileage but since I don’t actually do that and I actually own my car now
this is where I put my mileage in but like I said it you’re gonna have to ask
your accountant what’s best for you and your situation now commissions and fees
is always a flat on 1/29 for me that’s like my jungle scout and other
miscellaneous things that’s basically what you’re paying for you know certain
fees for actually uploading you can if you actually want to do this this is a
question I get a lot you can actually you know basically list your sales and
your income and then deduct the fees although I don’t understand why you
would want to do that because Amazon already does it for you so when they pay
you out the fees are already are already deducted from that payout so you don’t
need to do that so we’re just gonna move on with that but that’s where I put my
legis and my jungle scale and everything else that is a cost for your business in
that cash now contract labor that’s we’re gonna
put things like your VA and your prep Center
now you’ll see you down here I also listed some of those here in wages but
this is gonna depend you know on hours that you’re basically paying them if you
have full-time employees or if you’re simply just hiring contract labor here
and there for a VA or a prep Center that’s gonna fall into that now if we
look at some depreciation pretty self-explanatory if you’re also
deducting you know your car and you own a car or your mileage I’m under the
impression that’s where you put the appreciation but I’m not 100 about that
like I said not a tax professional I just hire an accountant so health
insurance now and you’ll see here I put that you can deduct that as well
obviously and the way that one of the ways you can do this that you might want
to look into is through an HSA account which is basically just lets you you
know if you get injured or you know you anything happens to you health insurance
wise as an entrepreneur basically you can you know write that off insurance
and other health pretty self-explanatory office expenses you know that’s so so
broad but just to give you examples of things that I’ve deducted on this
business for that is this actual laptop that I’m talking to you through this
microphone that I’m speaking into there’s a chair that I’m actually
sitting in right here these were all office expenses because I use them in my
business every single day now moving on let’s see car lease so like I said you
can deduct your car lease now that’s gonna depend on whether you own or you
you know you’re leasing like I said talk to your accountant but you can also
deduct a portion of your car lease if not the entire thing repairs and
maintenance pretty so explanatory supplies you know that’s like your other
that could also fall into the office expense category and vice versa so
you’re talking like tape for this business model you know paper if you’re
using you know you’re printing out paper through your printer a printer is
another great example of an office expense box is you know a label maker or
laborers Beit labels all those things fall under supplies and you can deduct
all those from your taxable income at the end of the month at the end of the
quarter or at the end of the year depending on whatever whenever you’re
doing it and that’s just being basically makes your it knocks your tax bill down
so you don’t have to pay that much in taxes now travel expenses pretty
self-explanatory or we skip taxes and license so taxes and licenses you know
just two examples of this really fast without diving into everything fully
in-depth here wholesale so if you’re paying a
wholesale license or wholesale fee from you know potential company or if you
have like you know a reseller permit or something like that that you’re paying
you know for per state that’s also gonna fall into here and then if you’re doing
like private labeling is some of those import fees and there’s tariffs that you
might pay also gonna fall into this category now travel expenses and meals
and entertainment both of these things are things that I’m actually deducting
at the end of this month I’m gonna fly out to see one my good buddies that is
actually a CPA as well and we’re gonna talk about you know my plan going
forward you know moving forward this year for my taxes I do actually have an
accountant as well but it just really helps me out to kind of and get somebody
that I trust you know full heartedly to give me their opinion on and their
expertise and it also kind of doubles as like a you know I’m basically flying out
there for business but I’m deducting it you know because it’s gonna be a good
opportunity to kind of double as like a fun way to see him as well as you know a
business and traveling expense so everything the flight
I’m not saying in the hotel I’m staying with him but if I were that would also
be a deduction if I rented a car that would be a deduction all sorts of things
like that and any meals are in an entertainment that I have while I’m
there basically also a deduction I put it on my business credit card and then I
pay that off and I know that that’s a deduction at the end of the month moving
on now believe it or not you can deduct utilities now you can only deduct a perp
or a portion of your utilities if you’re you know doing a home business but if
you have an office then you can deduct all of them wages as well we already
talked about but that’s really gonna depend on whether you’re putting in
commissions or contract labor excuse me or wages is gonna depend on whether you
actually have full-time employees most of the time or not now like I said all
these things are examples of things that I understand and I’ve deducted before I
wanted to give you examples of these so you can take them and run with them and
apply them to your own business I’m not telling you that you can always deduct
these for yourself always consult acts professional but
these just gives you ideas you know I hope it really helps because I know that
you know a lot of people don’t understand taxes and I certainly didn’t
when I got started now let’s move on to the fun stuff so if we deduct all those
expenses right there my net income before cost of goods becomes ten
thousand seven 7655 but that’s not what I actually made
because – the expenses obviously now we have to take off the cost of goods what
I actually spent on products to make that money so let’s pull out our trusty
calculator right here and I will see exactly how much I made and what I
actually have to pay taxes on so we’ll take ten thousand seven hundred and
seventy six fifty five – two thousand nine hundred and eighty dollars and
twelve cents and that becomes seven thousand seven hundred and ninety six
dollars and forty three cents now this is where a lot of people go wrong as
well they don’t put any money aside for taxes but you have to do that so I
always like to take thirty percent I know that that can be a little bit high
depending on your tax you know you on your income level and your tax bracket
on your state and so on and so forth and whether or not you’re paying an income
tax and vice versa I like to put thirty percent away you don’t have to put that
much away it’s just an opinion so I’m gonna take a conservative estimate let’s
just say 25 percent in the middle so let’s multiply this by 75 percent and
that will give us our take-home pay obviously the other portion of that is
what we end up having to pay in taxes whether you pay that at the end of the
month or you put in that you know into a fund to pay quarterly we’re enough fun
to pay at the end of the year that will give you an example and a really a good
understanding of you know hey how much I’m paying in taxes and be what I
actually get to take home and you know keep at the end of the day and at the
end of the month so let’s multiply this by point 75 because we’re paying 25
percent taxes right and that becomes five thousand eight hundred and forty
seven dollars and 32 cents so that’s exactly what I get to take home
obviously whatever that ought the rest of that was two thousand or whatever it
was it ends up being tax money and I put that into a fund and I talked about that
before if you guys want to check out my business bank account and how you can
set that up I’ll drop that as the card up in the right hand corner and I’ll
also link that in the description below but I hope this video helps you this is
stuff that you know I wish somebody would have walked me through and taught
me when I was first starting I know a lot of people that get into this and a
lot of people that are gonna take the course are just getting into this
business model so I know that a they would love to
understand most of them at least you know what they can deduct so that they
can obviously keep more majority of that money and also you know it just really
gives you an example from somebody who’s been in that place before so you can
take that and tailor that you don’t have to make the mistakes that I did
and like I said tailor to your business so hope you guys like this video give it
a thumbs up if you do it’s really good to be back I’m excited to kind of get
back into the swing of things I love a good vacation for those of you that
don’t know I was in Punta Cana with my girlfriend and some of my friends but as
much as I love a good vacation it really makes you appreciate you know coming
back and getting back into the grind because if you’re anything like me and
you’re an entrepreneur you absolutely love it so with that being said I’ll see
you guys in the next one

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