Sell Comics, Start a Business?2263
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four_loko_dude private msg quote post Address this user | |
| Hello Everyone! I started this thread because I am interested in selling some of my collection that I have accumulated over the past 15 years. I also want to continue buying because I love comic books but my interests have changed over that time. I have done quite a bit of reading and I have come to the conclusion that the best way is to start a sole proprietorship that way I can go to local shows/cons and get all the money from my sales without losing a commission fee to ComicConnect or ebay etc. Taxes are a thorny issue that no one ever seems to mention and this way I can just put the extra income on my 1040, which is better than the 28% collectible capital gain rate, if I understand everything correctly. Also this way seems somewhat fun to me. I am curious what the members of this board think. What do you think is the best way to sell your collection while getting the most for it? Also, has anyone setup at a local con? What did you do and how did it go? |
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 Collector
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Beehderty private msg quote post Address this user | |
| Cons are expensive. Ebay or local sell for most value back | ||
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 Collector
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JCage private msg quote post Address this user | |
| If you put a list of stuff I might be interested in some keys? | ||
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 Collector
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ZosoRocks private msg quote post Address this user | |
| IMO - eBay and other services - since they charge you a service fee, this eliminates the need to include your sales amount as additional income, because you are paying another company to sell the item at a cost. In addition, when you bought this item, it immediately went to the secondary market - in which you have already paid sales tax to own the item. Question - if you sold something at a garage sale, would you include that amount as part of your income on your taxes? Probably not, huh? I'm not quite sure if selling at a Con would mitigate any of the sales tax.....unless you are in a state that requires you to report it. I have taken some tax classes in the past, but the laws change yearly, so it would probably be best to ask the IRS. :o) |
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Towmater private msg quote post Address this user | |
Quote:Originally Posted by ZosoRocks You'd think that the local and state governments want their share of the sales taxes for sales at conventions. I wonder if the organizers have to report who attended so those entities get their money too. |
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 Collector
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mattness private msg quote post Address this user | |
| When I sell at cons in CA I have to fill out and submit a form stating how much I made then I'm taxed on it as additional income. | ||
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Collector
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four_loko_dude private msg quote post Address this user | |
| Thanks for the responses everyone. My thoughts are that local cons that charge 50-100 dollars for a table aren't expensive but Wizard World certainly is. I would never make a $1000 at a big show so I wouldn't bother with that, but a smaller comic-centered show (not pop culture extravaganza) would yield collectors interested in buying back issue books. For example, I have a couple keys Detective 359 CBCS 4.5, Action 242 CGC 4.5 that I know are in demand. If the price is right I think I can sell them at local show. On the issue of taxes, I respectfully disagree ZosoRocks. I have read multiple times that if I sell comics (the government views them as collectibles) at a garage sale and make a profit, that profit must be included as part of my taxable income. Here are two examples: I buy a lawn mower for $500, don't need it anymore, sell it at a garage sale for $100. The loss is not tax deductible. Another way of putting that is it is not a capital loss. I have a Tec 359 that I bought for $25 and sell it at a garage sale for $350, the difference is a capital gain taxed at 28%. However, if I have a business then my profit is taxed at whatever my total income bracket is which for me would be less than 28%. |
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 I had no way of knowing that 9.8 graded copies signed by Adam Hughes weren't what you were looking for.
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drchaos private msg quote post Address this user | |
| Start from the top down. Once you have the top books togrther either sell them on consignment or on ebay. Chances are that you will get more money from the top 10% of your books than you will get from the bottom 50%. |
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 COLLECTOR
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DarthLego private msg quote post Address this user | |
| Why on earth would you let Uncle Sam get a cut of your pie? | ||
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 COLLECTOR
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Foghorn_Sam private msg quote post Address this user | |
| Hmmmm,10% to ebay, ComicLink, ComicConnect etc. or up to 28% to feds plus Social Security tax plus your state's sales tax and income tax, that in the end puts you forking over about 40% or more of your profit. Of course as a small business you can then deduct the cost of doing business which will help out a lot. This meaning every supply, gas and miles on your vehicle for travel, convention fees, hotel and food expenses, advertising, web hosting costs and so on can be deducted, but you'd better have receipts for everything you spend and keep a detailed log of vehicle use and have a good accountant to help you be sure you're on the up and up reporting and using everything you can that a small business would be entitled too. To me this is a lot of hassle unless you can devote yourself to it full time. It just seems easier and less costly to let the auction houses do it. That 10% is a small loss compared to everything else you have to do to do it yourself. Unless of course you can become an auction house yourself and do what they are doing. Then you can probably start making some real money at it. | ||
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 Collector
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FN_2199 private msg quote post Address this user | |
| Ebay does not report sales to IRS because of your lawnmower example. Ebay originally set itself as a flea market, not designed as a business platform. PayPal will report your sales to the IRS at 200 transactions AND $20,000 gross profit. Will you have over $20K in sales annually? If so, it is reported automatically, if not, it would be on you to report to the IRS. |
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I had no way of knowing that 9.8 graded copies signed by Adam Hughes weren't what you were looking for.
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drchaos private msg quote post Address this user | |
| Comic Connect and Cpmic Link do mot send 1099s to the IRS. Paypal will send a 1099 if you have both 200+ sales AND more than $20,000 of sales. If yoh are not selling comics full time you are basically on the honor system to report your income unless you pass the Paypal limits. |
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Collector
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four_loko_dude private msg quote post Address this user | |
| The auction houses take 10% of the sale price, then if you make a profit you still have to send 28% to the feds. There is no way around that. From what I know, there is no social security tax because I am not self employed. I have another job so this is supplemental income from a hobby that makes a profit. I would send the hot books like Action 242 to ComicLink anyway because those books get the best price in that setting. I was wondering whether ComicLink sent 1099s to the IRS. Thank You drchaos for the info. I knew about the paypal rule and I certainly wouldn't reach that threshold. | ||
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 Collector
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BrianGreensnips private msg quote post Address this user | |
| @four_loko_dude I set up at smaller shows that run about $60 a table up to $250 for a 10'×10' space for a two day show. If you are not really active buying and selling a lot of books, it can be kind of tough especially if you do not sell a couple big books. For me, I sometimes do not like the idea of selling $60 worth of books just to break even on my table fee. Also people are trying to work you down on the price all the time. I have taken a break from doing these shows for about a year now. Just been buying books that I feel have a lot of up side. I will probably start doing shows again in about a year. Then I will have some fresh stuff and will look to profit on what I have been picking up the last year or so. I will also have some fresh CBCS graded books to put out too. | ||
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 Collector
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KiloGraham private msg quote post Address this user | |
Quote:Originally Posted by DarthLego No shit! If you're selling you own belongings for cash why would you report that. That's like going to the police every time you speed and asking to be ticketed. |
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I had no way of knowing that 9.8 graded copies signed by Adam Hughes weren't what you were looking for.
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drchaos private msg quote post Address this user | |
Quote:Originally Posted by KiloGraham Sellers (on ebay, etc) are only required to collect sales tax in the states where they have physical presence (in my case NJ). If you buy a book on ebay and a seller does not charge you sales tax (let's say I am in NJ and I ship the book to NY where you live) you are expected to voluntarily report the transaction and pay use tax (the same rate as sales tax in your state). So yes, much like your example (involving speeding) use tax requires you to report on yourself and voluntarily make payment. I am not making this up, the States expect you to report and pay use tax on inter-state transactions where you did not pay sales tax. |
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COLLECTOR
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DarthLego private msg quote post Address this user | |
| If you are selling books 2nd hand then it's not technically a business. It's technically the same as having a yard sale. You are not required to report a yard sale as income. Now if you are ordering books directly from Diamond at wholesale prices and reselling, then you're a business, then you are required to report that as income. DO NOT give the government money that they have no right to! | ||
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Collector
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KiloGraham private msg quote post Address this user | |
Quote:Originally Posted by DarthLego Exactly. You don't need to start a business to sell your books. Even smaller, comic centred conventions are essentially a swap meet or flea market unless the organizers stated that vendors must have a business license. Contact the the organizers, pay cash for a small table, accept cash only for sales, stuff that shit all up in your mattress. |
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COLLECTOR
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DarthLego private msg quote post Address this user | |
Quote:Originally Posted by KiloGraham  |
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 I live in RI and Rhode Islanders eat chili with beans.
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esaravo private msg quote post Address this user | |
@DarthLego |
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I had no way of knowing that 9.8 graded copies signed by Adam Hughes weren't what you were looking for.
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drchaos private msg quote post Address this user | |
| I would recommend trying the internet (you could list them here for free or pay ebay) or perhaps consignment when starting out. Setting up at a show means pricing and organizing everything. Also it means packing everything up, bringing it to the show, having people leaf through and potentially damage the books before you have to pack everything up, bring it home, and unpack it again. Shows involve a big investment of time and an upfront cost for the table. Internet and consignments are much easier (and potentially cheaper). |
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Collector
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BrianGreensnips private msg quote post Address this user | |
| @drchaos I have to agree with you. I almost forgot about the people manhandling your books too. Some people would act like they are on speed trying to ravage through your books as if they are in some kind of relay race. It gets me worked up thinking about some of these jerks. | ||
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Collector
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ZosoRocks private msg quote post Address this user | |
Quote:Originally Posted by KiloGraham Strange, huh? :o) I buy on the secondary market, because it is still a hobby....but.....I just read this...and I respectfully have to say, I have to agree with the poster who said it is taxable...over $400.00...but,...was not aware of this. http://www.skipmcgrath.com/articles/eBay-seller-profits-earnings-taxes.shtml Hmmm.....the honor syatem, huh? :o) |
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COLLECTOR
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DarthLego private msg quote post Address this user | |
Taxation is theft!...and now it's political.  |
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Collector
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ZosoRocks private msg quote post Address this user | |
| I claim it as fake news...yep....it's gotta be false. | ||
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 COLLECTOR
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JWKyle private msg quote post Address this user | |
| I send my stuff to MyComicShop.com. They take 10% or 5.00 for each item on commissions on items up to $300 dollars. Over $300 it's 8%. You don't have to worry about shipping or returned items. Plus you can get a check mailed to you so Paypal need not be involved. | ||
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 Collector
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jrs private msg quote post Address this user | |
| Interesting article @ZosoRocks. According to it: "Generally, any income you receive from all sources is subject to income tax unless it is specifically exempt by law (hint: eBay profits are not exempt by law). That means that a lot of activities that you might not think of as taxable, such as garage sale income, gambling winnings, and yes – eBay profits – are taxable." |
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I had no way of knowing that 9.8 graded copies signed by Adam Hughes weren't what you were looking for.
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drchaos private msg quote post Address this user | |
| If you find a bag of cash, gold, etc. in the street the IRS expects you to pay tax on it. It is also a crime not to pay tax on income from illegal activities (theft, prostitution, drug sales, illegal gambling, etc.) so if you get caught doing something illegal that you gained from they can tack on tax evasion to your list of charges. You are then subject to the tax plus any unpaid interest and penalties. |
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KiloGraham private msg quote post Address this user | |
Quote:Originally Posted by drchaos I believe that's what they got Al Capone on. |
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I had no way of knowing that 9.8 graded copies signed by Adam Hughes weren't what you were looking for.
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drchaos private msg quote post Address this user | |
Quote:Originally Posted by KiloGraham Capone was equally careful about keeping his illegal earnings hidden. He endorsed only one check in his lifetime, and he never had a bank account in his own name. With the exception of that one check (for proceeds from a gambling racket), Capone dealt exclusively in cash. The FBI worked in conjunction with the Treasury Department and the Internal Revenue Service to dig up dirt on the gangster. Eventually, they found enough to convict him. The check he endorsed, along with testimony from the very few witnesses the feds could persuade to testify, provided enough evidence to put Capone away. He was ultimately found guilty of evasion for not paying taxes on his ill-gotten wealth. Capone was sentenced to ten years in federal prison and an additional year to be served at in Chicago. |
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