70s80sTimeMachine

On 2/1/2022 at 4:12 PM, Shrevvy said:

If I understand what you are asking, the answer is "no." Inventory is not a cost to offset revenue. Inventory is an asset. Buying inventory is not cost of goods sold until the product is actually sold. 

 

Thanks for pointing this out. I didn't provide the proper full scenario; this was under the context of the first/initial year you acquired the (new comics) inventory; would it not also fall under line 36 in the Part III for Cost of Goods sold section?  

On 2/1/2022 at 11:29 AM, FlyingDonut said:

*NOTE THAT I AM NOT A TAX PROFESSIONAL SO PLEASE LISTEN TO YOUR GUY"

I carry inventory from year to year per my tax guy. That number is essentially a best guesstimate but it does have some basis in reality. On my Schedule C I split out things - further inventory buys, shipping costs, consignment payments, subscriptions (GPA, GoCollect, KeyCollector), grading/pressing fees, supplies (a stunningly large amount for 2021), and my website. Those are explicitly labeled in Part V as you show above.

Thanks. So that anyone is comfortable providing input on this; I want to preface that no one should ever take advice off the internet in a thread like this. We are all accountable for our own due diligence and decisions. This is merely an exchange of ideas or thinking out loud if you will.

The reason I was specifically asking about logistics on the inventory is that I can see some potential big upside to that, separate from the sales tax matter that @jimjum12 astutely mentioned.

Say you land on the Schedule C with multiple income related streams (not just because of comics/1099K or anything comic related)  If you had another income source that had to be denoted in the Schedule C as well and you were carrying comic book inventory annually i.e. denoting your comic book purchases as costs of goods sold in Schedule C Part III or Part V; would this not then effectively reduce your total income tax liability for that particular year by at least delaying well it into the future until you sold said comic book inventory?

There are multiple credit card companies now offering unlimited 2% cash back rewards on a consistent/regular basis. There are even a couple that double your rewards if you pay through PP so if I'm in a pinch and don't want to miss out on a slab I really want that might have just posted on the MCS website, I just use my Wells Fargo or Citi etc. thus the net vig is really then only 1%. 

On 1/27/2022 at 12:01 PM, FlyingDonut said:

eBay is posting their 1099ks on January 31. The eBay report is pretty easy, all things considered - I think the Paypal csv dump just as hard.

@F For Fake  @ttfitz  @batman_fan  @snitzer  @october

This question is not necessarily for anyone specific but rather curious to see what folks in general are doing on this one.

For Paypal fees, UPS/USPS services etc. shipping costs, packing supplies, and eBay fees; is it better or preferred to just lump these all together into line item 10 on the Schedule C or do you explicitly label these individually in Part V and then that aggregate total gets carried over to line 27a.

For someone perhaps in the middle i.e. comics is not an actual business as you get a W2 from your career job but due to higher $$$ transactions and/or 1099-Ks, your comic transactions land you on the Schedule C anyways, does it make sense that with your collection, if you knew a couple years down the road you will sell a specific run or groups of slabs, is there any benefit to carrying these as "inventory" in Part III (Cost of Goods Sold?) 

Put a different way; you are not running a comic empire business. You are really just a collector but because of 1099K issuance, you have to fill out Schedule C. Is it acceptable to have $0 value for beginning inventory and ending inventory each year since you can't predict the future with respect to when/if you might sell a bunch of slabs. 

On 1/19/2022 at 10:41 PM, THE_BEYONDER said:

 

1984

I completed a couple trades on this book in slabbed form only 13 months ago now. This is not going to be a revelation for most on here but blue label 9.8s could be had for $900ish give or take. And SS depending on signature(s) were going anywhere from $1100 to $1400. Now the blue labels are pushing nearly $2K and SS $3K+. For only 13 months this is an incredible uptick. At this point, I have picked up a decent NMish raw but missed the proverbial boat on this one. 

Godzilla crossover = greatest all-time.

On 1/25/2022 at 7:13 PM, ttfitz said:

Do you live in "Upstate NY" like your profile says, or somewhere else?

I ask because some states - like my state of Virginia - have already lowered the threshold for this, so you may be in one of those states.

I believe that I read Vermont, Maryland, Massachusetts, and Illinois were in same early boat as Virginia as well.

Sending PM. Thank you.