Income tax question15799
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cesidio private msg quote post Address this user | |
Quote:Originally Posted by the420bandito OR garage/yard sales |
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| Post 26 • IP flag post | ||
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Towmater private msg quote post Address this user | |
| I don't think eBay is going to be happy. I'm glad the flippers will have to either pay taxes (which they should be doing and may be) or they will be seeking other avenues to sell their items. Noting that in our area the convention centers now require sellers to provide their tax information for sales tax reporting and payment purposes it should be easier for cross checking to happen in an audit. |
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| Post 27 • IP flag post | ||
 past performance is no guarantee of future actions.
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KatKomics private msg quote post Address this user | |
| Do you guys have probate/estate tax?? Best option is to die - have your estate pay 1% (that's the rate where I am) on the assessed value then their new tax base is that value - they can sell all books immediately and deduct any brokerage fees etc. and will end up paying little to no tax on the sale. Or....what are your tax rates for gifts?? We can gift up to $15,000 annually with no impact (to as many people as you want) - so assess the value of the collection - gift it to a child or spouse - or better yet a relative on their death bed where you are the sold beneficiary. Gift now and again in Jan - hope they die in Feb - pay the estate tax $300 - get $30k in books back -sell with no income! Say sales are $35k - cost of good sold is $30k plus selling fees = no income!! |
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| Post 28 • IP flag post | ||
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Collector
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cesidio private msg quote post Address this user | |
Quote:Originally Posted by DrWatson That's the problem most of us that do this for a living or side job are getting squeezed. Big difference between starting to pay the taxes on 600 than starting to pay on 20000+. This is going to be a mess. Anyone that does more than 600 in sales should really talk to a tax pro. |
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| Post 29 • IP flag post | ||
 Masculinity takes a holiday.
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EbayMafia private msg quote post Address this user | |
Quote:Originally Posted by DrWatson I have complex feelings about the subject. The fact that people are willing to buy and sell on Ebay with 10% seller fees and 10% sales tax tells me that there is a fair number that people are willing to pay for a clean, simple process. When you start adding in a state and federal income tax and make people track every detail of their hobby...for small players I think it just gets to be too much and too complicated. So they will either disappear or go to the black market. it won't do anything to the bigger players they have always been past the minimum reporting requirements and have their systems in place. I just wonder what the fair share/fair process is for the small time hobbyist who is dealing with less than $20,000 per year in sales and purchases. Quote: Originally Posted by the420bandito I've thought about the hit to Ebay. The information I would like to know is what percentage of their revenue comes from dealers doing between $600 and $20,000 per year? And of those, what percentage don't currently report their sales as part of their overall income? If that is a big number, short Ebay stock. If that is a small number, they shouldn't be too worried. And the smart money doesn't seem to be overly worried about it. |
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| Post 30 • IP flag post | ||
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past performance is no guarantee of future actions.
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KatKomics private msg quote post Address this user | |
| I don't get why the IRS is going after sales of personal property? We can sell personal items without reporting as income up to $1000 Any individual item sold over $1000 you only pay the difference i.e. sold for $1500 - only claim $500 as profit This new rule would I think mean that someone having a moving sale - could, potentially end up having to technically pay tax if they made more than $600 yes? |
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| Post 31 • IP flag post | ||
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past performance is no guarantee of future actions.
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KatKomics private msg quote post Address this user | |
Quote:Originally Posted by DrWatson I agree but also disagree - what constitutes 'business' - someone who sells some personal items once in a while to either pay bills or buy other items isn't what you would call a business. Would certainly fail the 'going concern' test. As far as paying fair share - the people who get the 'profit' will likely buy things that will have taxes on them so it all goes into the pot -if anything this will drive black markets and possibly reduce the flow of cash in the economy as some just choose to not sell their knick knacks at all |
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| Post 32 • IP flag post | ||
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Collector
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cesidio private msg quote post Address this user | |
Quote:Originally Posted by EbayMafia It's not just comics. Comics sports cards pokemon cards coins art even collectable wines. This is anecdotal but I use to be able to buy gold and silver coins from the US Mint and make money selling at 7 to 10 % over spot. Now those are break even prices. When the federal stuff kicks in next year my accountant said realistically am going to have to go 12 to 15 % just to break even. I'm not into this to break even. And not to many consumers outside of basic utilities are going to pay a 20+ % premium for a book card coin or anything else. |
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| Post 33 • IP flag post | ||
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Masculinity takes a holiday.
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EbayMafia private msg quote post Address this user | |
| I suspect that the 80/20 rule applies to Ebay sellers: 80% of Ebays revenues are generated by 20% of their sellers. The new reporting requirements would mean nothing to these high-volume sellers, because they are already over the existing thresholds. Of the remaining 80% of sellers, even if the bottom half drop out because of the new laws that is only going to likely be 5%-6% of sales (maximum 10%). I'm guessing Ebay figures at least half of that lost revenue will be picked up by additional sales going to the high volume sellers. So they might see a 2%-3% drop in revenues from this in a bad case scenario. | ||
| Post 34 • IP flag post | ||
 Collector
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doog private msg quote post Address this user | |
| I read that the proposed tax reporting rule has changed from $600 to $10,000 after complaints from the banking industry. Much more reasonable IMO. |
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| Post 35 • IP flag post | ||
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Doc_Cop private msg quote post Address this user | |
| The actual 2022 tax changes are you'll have to report income from selling comics over $600.00. It used to be $20,000. Which sucks! Of course you'll also have to keep great records of your purchase price, costs to ship etc. so you are able to lower your profit and actual income from the sale. Either way, on top of the 13% you'll pay for EBay and PayPal fees you'll pay Uncle Sam his cut (your specific tax bracket). You'll see a lot less people selling on EBay and more people using YouTube live streams, Facebook Market Place and forums such as this. | ||
| Post 36 • IP flag post | ||
 Collector
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Huntergreene2 private msg quote post Address this user | |
Just make it an official business, claim it all and your weekly purchases for your collection are "cost of goods".  |
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| Post 37 • IP flag post | ||
 Have I told you about the time I dropped off 3,000 comics at SDCC?
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Scifinator private msg quote post Address this user | |
| @doog - nope, not reasonable at all since the AVERAGE American has annual flows of $61,000 per year. What you are referring (600 to 10,000) is not tax reporting. It is reporting of ones banks deposits and withdrawals. Not just deposits from goods sold. This will give the government unreasonable access to most americans data. Why? Not because they are trying to catch the rich tax cheats. I doubt it is for tax cheats at all. With this data, the government will be able to further mine data on patterns and proclivities of virtually all Americans. For anyone who thinks this is a good idea, I hear China is lovely this time of year. |
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| Post 38 • IP flag post | ||
 Where's his Bat-package?
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Byrdibyrd private msg quote post Address this user | |
Quote:Originally Posted by Doc_Cop Sorry, but... no. You are actually supposed to report all income from sales ('garage sales' type are exempt - as in, sporadic sales that don't net much profit - but I don't know the exact parameters), not just when they meet the requirements for eBay to issue a 1099K. I found this gem out from my accountant, and believe me, I was very glad that I keep all my receipts. The reason why eBay is changing IRS reporting requirements was pretty obvious that year, too, because I actually made over $40,000 from sales on eBay but didn't qualify for a 1099K because of the number of sales. It is not difficult, with the previous requirements, for tax fraud to occur (sorry, that's what it is when you don't report your taxable income) simply because people don't know that just because you don't get the 1099K, doesn't mean that you don't have to report the income anyway. If you get audited, Uncle Sugar won't care that you have an excuse, he's just going to want his back-tax money + interest. |
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| Post 39 • IP flag post | ||
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Masculinity takes a holiday.
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EbayMafia private msg quote post Address this user | |
| I notice a pattern of people saying that you need to talk to a tax accountant. And I know that statement is true, but philosophically I wonder why? Why should the IRS make the mountain so difficult to properly climb, that only by paying a Sherpa can the average citizen hope to scale it unscathed? Is that fair? Is that moral? That's why I don't think it is wrong or immoral for the average citizen to simply keep their annual sales small and avoid stepping on to the mountain at all. In fact, I believe this may be why the reporting limits were set at $10,000 in the first place. A recognition that the average person should be able to engage in the marketplace to a small degree without needing to hire an expert to navigate the tax situation. Kind of a trade-off of "you're supposed to report it but we know the tax laws are egregiously biased in favor of those with professional assistance. So we will turn a blind eye to small numbers". | ||
| Post 40 • IP flag post | ||
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Towmater private msg quote post Address this user | |
| @EbayMafia While yours view seem to be philosophical in nature, the answer isn't. The answer is because they are the experts. They have gained insight into what works and what doesn't through years of education and practical experience. For example, if one doesn't learn from people who haven't been downrange or cleared rooms in the real world then you end up dead if you try it without learning from them. |
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| Post 41 • IP flag post | ||
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Have I told you about the time I dropped off 3,000 comics at SDCC?
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Scifinator private msg quote post Address this user | |
| @Towmater - Clearing rooms and downrange...one might think you referring to particularly noxious flatulence. Then again, our tax code is a steamy pile of bovine excrement. So says Scifinator - He who comes into serious conversations with oddly timed jokes. |
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| Post 42 • IP flag post | ||
 I'm waiting.... (tapping fingers).Splotches is gettin old! |
Nuffsaid111 private msg quote post Address this user | |
Quote:Originally Posted by EbayMafia This 1000000000000000000000000000000% |
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| Post 43 • IP flag post | ||
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Masculinity takes a holiday.
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EbayMafia private msg quote post Address this user | |
Quote:Originally Posted by Towmater @Towmater I think you might be misunderstanding the subject of the "why" in my comment. You're right, one shouldn't expect to clear out a Crips safehouse without the help of trained and experienced professionals. But why should that be true of dabbling in the buying and selling of collectibles? Tax regulations that benefit those with expert help are biased towards entities that are large enough to justify hiring expert help. They are biased against the average unsophisticated citizen. I believe the $10,000 reporting threshold has always been a way of equalizing this. A way of protecting the dabblers from the complexities of tax laws that are really intended for more sophisticated entities. |
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| Post 44 • IP flag post | ||
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Collector*
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Towmater private msg quote post Address this user | |
Quote:Originally Posted by EbayMafia OK, and things change. That's the way things go in life. If one isn't willing to get advise from a tax professional, or gain the expertise necessary then the choices are really, leave the playing field or stay on it an accept the consequence of not doing things correctly. |
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| Post 45 • IP flag post | ||
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past performance is no guarantee of future actions.
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KatKomics private msg quote post Address this user | |
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| Post 46 • IP flag post | ||
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I'm waiting.... (tapping fingers). Splotches is gettin old! |
Nuffsaid111 private msg quote post Address this user | |
| As many have stated on here and I shall parrot: This Forum (and other forums), Local Conventions, Garage Sales, setting up at Flea Markets, Facebook /Instagram sales will undoubtedly increase next year. Ebay and other avenues that have to provide a 1099 will take a hit. How much - who knows. I know my direction in 2022 and it is not where it currently is. |
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| Post 47 • IP flag post | ||
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Masculinity takes a holiday.
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EbayMafia private msg quote post Address this user | |
Quote:Originally Posted by Huntergreene2 @Huntergreene2 Yes, eventually when you sell them they can move to the Profit and Loss statement and reduce your tax liability as Cost of Goods Sold. In the meantime they will stay on your Balance Sheet as Inventory and won't help reduce your taxes. Technically you could write them off as "obsolete" but I think it would raise a red flag to repeatedly write off a significant portion of your inventory as obsolete or unsellable. Probably doing it in your first year of reporting would also raise a red flag and potentially trigger an audit. |
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| Post 48 • IP flag post | ||
 To answer your question, no, this is not where the comics go to die.
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MutantMania private msg quote post Address this user | |
| Yeah I think I am going to set up some type of store in my garage for sales.... | ||
| Post 49 • IP flag post | ||
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Collector*
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Towmater private msg quote post Address this user | |
| I'm not sure how forums and facebook are any different than eBay. While one might not receive a 1099, people generally don't send cash through the mail. So, payments have to be deposited and run through a bank. Unless you are doing a trade there is a paper trail on the transaction that can be followed. | ||
| Post 50 • IP flag post | ||
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I'm waiting.... (tapping fingers). Splotches is gettin old! |
Nuffsaid111 private msg quote post Address this user | |
Quote:Originally Posted by Towmater Facebook - I will sell locally. There are dozens of groups in my vicinity/county for sales. They will be cash only. Forum - removed from the list All the rest remain and will be cash only. Problem solved |
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| Post 51 • IP flag post | ||
 The apple sauce and pudding were the best part...
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Bronte private msg quote post Address this user | |
| I was offered a local sale of a book I have on ebay.. Somehow doing a local sale of a 4k book sounds kinda scary. I can't imagine counting 4k even in a police department.... | ||
| Post 52 • IP flag post | ||
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I'm waiting.... (tapping fingers). Splotches is gettin old! |
Nuffsaid111 private msg quote post Address this user | |
Quote:Originally Posted by Bronte I dont work with books of that value. I work with hundreds. So it works for me |
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| Post 53 • IP flag post | ||
 I live in RI and Rhode Islanders eat chili with beans.
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esaravo private msg quote post Address this user | |
| We really should set up a trading thread. No money needed, no PayPal, no eBay, just swap books for other books (or collectables). | ||
| Post 54 • IP flag post | ||
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past performance is no guarantee of future actions.
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KatKomics private msg quote post Address this user | |
| Move to Canada and become Canadian Citizens - none of this applies to us - easy peasy!!! Or..setup a #'d company in a tax haven - funnel all transactions through there - visit once a year to bring back just under the amount where you need to declare... for Canada it's 10k - soooo come back with 9k and you don't need to declare it |
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| Post 55 • IP flag post | ||
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