tax consequences 2022 | CBCS Comics

Quote:

Originally Posted by EbayMafia
Quote:
Originally Posted by Jabberwookie
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.

You won't need receipts if you don't get audited. If your claims are reasonable you likely won't get audited.

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.

Have I told you about the time I dropped off 3,000 comics at SDCC? 15.82K	15.82K Scifinator private msg quote post Address this user	plus 1 plus 1 plus 1 4
	@Puckster - If your parents are still alive, disregard the following. If your parents are deceased, not to worry...At least NOT YET. There is what's known as date of death step up in basis. Essentially, the collectibles get a bump up in basis (cost wise for taxes) to ones date of death. As such if I bought my Alpha Flight #1 in 1983 for 0.75 and I die in 2033 the year after that Alpha Flight starred in their own title Movie which wins massive accolades and rockets the comic to $50,000 when my sons sell it, the basis for tax purposes will be 50,000 thus no income. Again this assumes I die and my sons sell it. If the hold it for another year and sell it for $75,000, the taxable gain is now $25,000. If your parents are still alive then all Reiterating my earlier comment about not blowing up this thread, please save your political comments for some other forum, the following is educational Now about that "NOT YET". Bernie Sanders basically introduced legislation that then candidate Biden pretty much agreed to during his campaign that would eliminate Step Up in Basis, along with killing or severely limiting estate tax deductions and annual gifting. For those who think that they may have life insurance to help pay for the death taxes, guess what if this legislation is passed, the life proceeds will also be taxed, thus substantially increasing the tax burden and liquidity needs to pay said taxes. There is a very good chance that a substantial portion of the proposal will become law, the elimination of step up in basis is a real possibility.
	4 years ago	Post 44 • IP flag post

Collector 5.69K	5.69K Jabberwookie private msg quote post Address this user	plus 1 plus 1 plus 1 0
	Quote: Originally Posted by EbayMafia Quote: Originally Posted by Jabberwookie 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. You won't need receipts if you don't get audited. If your claims are reasonable you likely won't get audited. 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.
	4 years ago	Post 26 • IP flag post

The apple sauce and pudding were the best part... 38.94K	38.94K Bronte private msg quote post Address this user	plus 1 plus 1 plus 1 0
	Still have not recieved a response from mcs on their position on 1099 forms....
	4 years ago	Post 27 • IP flag post

Collector 2.2K	2.2K Noblebeast315 private msg quote post Address this user	plus 1 plus 1 plus 1 0
	Quote: Originally Posted by JustThatGuy @Noblebeast315 are you a motivational speaker? Every single day.
	4 years ago	Post 28 • IP flag post

Collector 100	100 Bige private msg quote post Address this user	plus 1 plus 1 plus 1 12
	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.
	4 years ago	Post 29 • IP flag post

Masculinity takes a holiday. 37.27K	37.27K EbayMafia private msg quote post Address this user	plus 1 plus 1 plus 1 3
	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.
	4 years ago	Post 30 • IP flag post

If the viagra is working you should be well over a 9.8. 17.9K	17.9K xkonk private msg quote post Address this user	plus 1 plus 1 plus 1 5
	Quote: Originally Posted by Jabberwookie Claim you’re non-profit like the NFL? My collecting habit is certainly non-profit!
	4 years ago	Post 31 • IP flag post

Collector 100	100 Bige private msg quote post Address this user	plus 1 plus 1 plus 1 6
	Guys don't forget your storage for all those years. These are not stocks and bonds. New bags and boards, boxes and of course a place to store them.
	4 years ago	Post 33 • IP flag post

Collector* 10.54K	10.54K Towmater private msg quote post Address this user	plus 1 plus 1 plus 1 0
	Quote: Originally Posted by Jabberwookie Fair enough, but who is making the designation of what’s reasonable? If you get audited, then it would be the IRS. @Scifinator Thanks for the votes. You got me to 7600 on the nose.
	4 years ago	Post 34 • IP flag post

Masculinity takes a holiday. 37.27K	37.27K EbayMafia private msg quote post Address this user	plus 1 plus 1 plus 1 2
	Quote: Originally Posted by Scifinator @Bige - Totally agree with you. I was telling that client to fire his accountant for years before he finally woke up. One thing you have to keep in mind with CPA's, if one client goes down, all of their clients are at risk of being audited. It's a real fine line on just how aggressive you want a CPA to be. You definitely want to avoid CPA's who have clients that are powerful enough or intimidating enough to be able to put pressure on them. If your CPA is also CPA to Don Corleon, the IRS probably has both of you in their sights.
	4 years ago	Post 38 • IP flag post

I'm waiting.... (tapping fingers). Splotches is gettin old! 20.07K	20.07K Nuffsaid111 private msg quote post Address this user	plus 1 plus 1 plus 1 3
	This is a very very interesting thread. I've thought about it for months since this word got out about the $600 instead of $20k/200 sales. Although I've heard dozens and dozens of times the "...... yea but they should have already been reporting that income" I'm quite sure many/most don't report the income. This may change the whole dynamic of selling on ebay for millions of people; or maybe they report accordingly now. I dunno. I'm very interested to see how the millions adjust to it.
	4 years ago	Post 40 • IP flag post

Collector 3K	3K Puckster private msg quote post Address this user	plus 1 plus 1 plus 1 1
	I have to say thanks for this thread. I don't sell much as far as comics but I do sell a lot of collectables that my dad had for my mom. Primarily Zippo lighters. I do a few hundred $ in sales every month. This is going to hit me pretty hard.
	4 years ago	Post 43 • IP flag post

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