tax consequences 202214570
 Collector
|
tonyz58 private msg quote post Address this user | |
| Anyone out there with with knowledge re new tax law for 2022 re collectibles?? Will all sales be regarded as ordinary income?? Any suggestions to protect ourselves?? Or are we screwed?? | ||
| Post 1 • IP flag post | ||
 Collector
|
Dalkiel private msg quote post Address this user | |
| . | ||
| Post 2 • IP flag post | ||
 Collector
|
Jabberwookie private msg quote post Address this user | |
| I would definitely seek out a tax professional. I have some experience with stocks, bonds and dividends, but where those differ from collectibles is the cost basis is recorded somewhere. Basically, there is a record of what you bought and sold it for. There doesn’t seem to be anything like that for collectibles, so you’ll be paying on all of what you made. Unless, you kept a lot of receipts. |
||
| Post 3 • IP flag post | ||
 Collector
|
doog private msg quote post Address this user | |
| Anything over $600 in sales you will get a 1099 from EBay or whoever you use. Comics are taxed for capital gains purposes at 40% Hope you have some write offs to reduce the tax. Even worse case I made a killing off my comics investment. |
||
| Post 4 • IP flag post | ||
 Collector
|
Murm private msg quote post Address this user | |
| How about here on the boards if someone receives a payment thru PayPal Goods & Services? Does PayPal report it to the IRS? |
||
| Post 5 • IP flag post | ||
 Have I told you about the time I dropped off 3,000 comics at SDCC?
|
Scifinator private msg quote post Address this user | |
| @tonyz58 - Well, that is an interesting question. First off, technically no. Sale of collectibles is a capital gain not ordinary income though some capital gains are taxed as ordinary income and collectibles are subject to a capital gains tax rate that is higher than the typical capital gains rate. That said, in relation to the recent "stimulus" or "American Rescue Plan Act of 2021" (let's not derail this thread with political tyrads on the merits or lack thereof of said act please), yes, the act will now require ebay, etsy, paypal, amazon, etc to issue 1099's to those who have total sales exceeding $600 in 2022. But again technically, one was supposed to self report that anyway. Really, the problem lies in the accounting of such sales. Did you buy the collectible Barbie, coin, comic, etc 13 years ago at $168 and sold it in feb 2022 for for $100 or $1,000? You either have a cap loss or a cap gain, but, do you have the receipt to prove such cost basis? Probably not. For all your accountant or IRS know, it was a gift with 0 cost basis. Now there is much more nuance to that that I being a CFP and not a CPA will defer to the professional accounts, but I think this give you the gist. That all said, true auction houses like Sotheby's, Heritage, Hake's, etc may not be subject to the 1099 rule. we will seen when the IRS published the regs based on the new law. |
||
| Post 6 • IP flag post | ||
 Collector
|
tonnage71 private msg quote post Address this user | |
| Following.... | ||
| Post 7 • IP flag post | ||
|
Collector
|
Rjman48 private msg quote post Address this user | |
| I second @murmonster. Here's an interesting article. I don't know if this pertains to feeless transaction platforms like venmo, zelle, cash app, or even PayPal g&s's. It's going to become harder to avoid reporting income from selling stuff online https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard |
||
| Post 8 • IP flag post | ||
|
Have I told you about the time I dropped off 3,000 comics at SDCC?
|
Scifinator private msg quote post Address this user | |
| @Murmonster yes, it will be for Goods and Service payments. | ||
| Post 9 • IP flag post | ||
|
Have I told you about the time I dropped off 3,000 comics at SDCC?
|
Scifinator private msg quote post Address this user | |
| @doog not 40% unless you are adding state like NY or CA. Fed tax rate for most collectibles is 28% | ||
| Post 10 • IP flag post | ||
|
Collector
|
Murm private msg quote post Address this user | |
| @Scifinator I just edited my comment but the answer is yes in that PayPal will report all payments received thru Goods & Services to the IRS? | ||
| Post 11 • IP flag post | ||
|
Have I told you about the time I dropped off 3,000 comics at SDCC?
|
Scifinator private msg quote post Address this user | |
| @Murmonster yes, even if negotiated thru CBCS forum, Facebook, etc. I fear an unfortunate byproduct will be more fraud as more people will start to use friends and family. Which, is great, bu unfortunately, not everyone is an @esaravo caliber person. | ||
| Post 12 • IP flag post | ||
 Captain Accident
|
the420bandito private msg quote post Address this user | |
Just do like Google, Amazon, Apple etc. do....they avoid billions and billions in taxes and don't pay their fair share.  |
||
| Post 13 • IP flag post | ||
|
Collector
|
Jabberwookie private msg quote post Address this user | |
Quote:Originally Posted by the420bandito So make your home office in Ireland or something? Claim you’re non-profit like the NFL? |
||
| Post 14 • IP flag post | ||
|
Collector
|
Murm private msg quote post Address this user | |
| @Scifinator Thanks for the info I’ve been wondering about it for a while glad to finally get an answer. | ||
| Post 15 • IP flag post | ||
 Collector*
|
Towmater private msg quote post Address this user | |
| Speak with your accountant. If you don't have one set an appointment after tax season with a CPA in your area. Lay out what you have been doing in sales and what your records are like. That way you have at least 6 months to develop a tax strategy with the CPA to help lesson the blow. | ||
| Post 16 • IP flag post | ||
 "Forum Overlord" bah ha ha ha...
|
JustThatGuy private msg quote post Address this user | |
| Anyone wants to set up shop in a van? | ||
| Post 17 • IP flag post | ||
|
Captain Accident
|
the420bandito private msg quote post Address this user | |
Quote:Originally Posted by JustThatGuy I've sold plenty of books face-to-face. We are still a free country last time I checked... |
||
| Post 18 • IP flag post | ||
 Beaten by boat oars
|
Studley_Dudley private msg quote post Address this user | |
| Clearly cash would be king in these scenarios, but what about being paid via money order or check? Would that be tracked or is that reporting based on the honesty policy? | ||
| Post 19 • IP flag post | ||
 Masculinity takes a holiday.
|
EbayMafia private msg quote post Address this user | |
Quote:Originally Posted by Jabberwookie @Jabberwookie Isn't the NFL just a management Umbrella for the team owners? I always assumed that the NFL organization is a non-profit. I figured that all retained earnings were sent to the team owners, which would be where the taxes are paid. |
||
| Post 20 • IP flag post | ||
 Collector
|
Noblebeast315 private msg quote post Address this user | |
| @JustThatGuy down by the river? | ||
| Post 21 • IP flag post | ||
|
Masculinity takes a holiday.
|
EbayMafia private msg quote post Address this user | |
Quote:Originally Posted by Scifinator I'm wondering about the current status of friends and family. It used to be that it was just for sending gift money to family or friends. But I've used it quite a bit and I don't see it presented that way in more. The way I read the instructions currenlty, it's really acceptable for anyone that you have trust in and sending money the other way is just a way of purchasing Buyers Insurance. I do wonder what's in it for Paypal, but I assume they just want to get money into Paypal accounts where it will turn into fees for them eventually one way or another. |
||
| Post 22 • IP flag post | ||
|
Masculinity takes a holiday.
|
EbayMafia private msg quote post Address this user | |
Quote:Originally Posted by Jabberwookie You won't need receipts if you don't get audited. If your claims are reasonable you likely won't get audited. |
||
| Post 23 • IP flag post | ||
|
"Forum Overlord" bah ha ha ha...
|
JustThatGuy private msg quote post Address this user | |
| @Noblebeast315 are you a motivational speaker? | ||
| Post 24 • IP flag post | ||
|
Collector
|
Jabberwookie private msg quote post Address this user | |
Quote:Originally Posted by EbayMafia Yes, it’s a little more complex than my flip remark, and I also didn’t want to go into a deep dive on non-profits and tax loopholes and the like on a thread about mostly comics. My hope is people will go seek out the info on their own. |
||
| Post 25 • IP flag post | ||
|
Collector
|
Jabberwookie private msg quote post Address this user | |
Quote:Originally Posted by EbayMafia Fair enough, but who is making the designation of what’s reasonable? I suspect there will be some growing pains and an ounce of prevention is worth a pound of cure. This was less about scaring people and more about noting the differences in stocks vs collectibles. |
||
| Post 26 • IP flag post | ||
 The apple sauce and pudding were the best part...
|
Bronte private msg quote post Address this user | |
| Still have not recieved a response from mcs on their position on 1099 forms.... | ||
| Post 27 • IP flag post | ||
|
Collector
|
Noblebeast315 private msg quote post Address this user | |
Quote:Originally Posted by JustThatGuy Every single day. |
||
| Post 28 • IP flag post | ||
 Collector
|
Bige private msg quote post Address this user | |
| I am a tax professional and you can write off some of your slabbing and the cost of all the expenses against that 1099. Computer expenses, cameras, some of your phone bill whatever you use to make money, Including going to your LCS, shipping fees everything. Remember the ebay fees and the cost of the comics. Not sure if this is your collection from years ago, also write off losses. You can use all of that to reduce your gains. | ||
| Post 29 • IP flag post | ||
|
Masculinity takes a holiday.
|
EbayMafia private msg quote post Address this user | |
| Here's why Black Markets become popular in societies burdened with fees and taxes: Scenario 1) Let's say I Buy @Martymann's Golden Age childhood collection for $50,000 on Ebay, I Pay $55,000 with sales tax, @Martymann keeps $45,000 after fees and $27,000 after Capital Gains taxes. Scenario 2) I meet @Martymann at a con, we agree on $41,000 cash and we each part with an extra $14,000 in our pockets to spread around in other places. In my opinion this will be the greatest gift ever to promoters of collectibles conventions. Ebay on the other hand is going to have a tough time adjusting to it. |
||
| Post 30 • IP flag post | ||
This topic is archived. Start new topic?