MyNameIsLegion

HA and and state sales tax revenues would beg to differ. 15% to HA from seller, 21% to HA from Buyer, 8-10% in sales tax. Not to mention S&H, I think selling a few grand of collectibles generates plenty of velocity for money in the REAL economy. I'd argue the opposite on many capital gains bound electronic transactions. It's just paper wealth sitting on servers.

Savage Tales is her 17th appearance, 2 away from MTU 95 according to this: https://cmro.travis-starnes.com/character_details.php?character=574

One year earlier- Jan 1975 Savage Tales #8. I think many overlook this. I'd had this page of art for more than a few years before I even realized it.

Don't forget Bobbi was in Savage Tales also....

my dad just passed away, and there may come a time where my brother sells some items, mostly books, many of which were gifts from us or bought used over the course of 50 years. You think we have receipts? The fact it wasn't worth declaring any itemized value for any of dad's physical property agains't his estate? I bristle at the idea that I've got to do a bunch non value added paperwork benefitting no one thanks to this.

thaz kopper dewd.

this right here....

so this is exactly what I feared would happen, and this is under the existing rules. At a $600 threshold can you imagine the chaos? Pretty much if A (the amount of the 1099K) + B (the amount of additional income from the source of the 1099K declared) does not = 2 X A (or more) then they are just going to stick it to you. (I know that sounded clumsy, but it appears that A-B=C (for schedule C doesn't seem to be good enough)) And just how far into the future are you supposed to hold onto these records just in case they come snooping around? 7 years? 10 Years? Jesus.

exactly. If Ebay's 1099 says you were paid $1000, and you declare $0 extra income because you were reselling the kids old toys or crib or sports equipments, exactly where is it that you document this? It's not an itemized deduction. So what substantiates the tax payers assertion they anything to report that's less than the 1099K?????

wait, how is shipping a specific items not deductible? As it is, Ebay and Paypal take a cut of the shipping cost. If I sell for $20, COGs is $10, fees are $2 and shipping is $3 and I net $5 I have to declare $8 as income? WTH?

This seems like just a giant PIA. If the IRS consistently get a 1099 for millions of individual with anything less than 100% of that amount reported as income, for those that sold at a loss, they have to keep track of it, if and only if they are audited if they declare any amount less than what's in the 1099K. This seems like a terrible used of everyone's time, including the IRS. Of course, as Voduo suggested, this all gets automated, all bets are off, but it's still a hassle for the taxpayer. Most won't bother, they will just declare it. for low income households they will just get less of a refund. It could pinch some people on medicaid, medicare, or disability. But it see like it will always raise a flag if a middle income household that does not itemize their deductions (because the standard deduction is still a better for them) and takes the standard deduction is declaring less than the 1099K.

THAT, was extremely helpful, thank you, but it does raise the philosophical question of "opportunity cost" in what an artist creates, as in the T-shirt example. Hell, just think of the carbon footprint of the art supplies and markers and inks and pencils and paper to even produce a piece of physical art. these sunk costs are not being passed on to consumers directly, because much of the energy and material cost (same thing, 1st and 2nd law of thermodynamics) is taken from the environment at large. We could make the same argument about raising a puppy. Is it ethical is it right, no matter how cute it is. But this article does speak to changes in the how this stuff works that would dramatically reduce and NFT's carbon footprint, it just seems like they need ot wait a year. Bu too many people will FOMO now and want to jump on board.

oh man, sorry I didn't mean to get you in trouble, and I didn't see anything you posted that was mod worthy but maybe I missed it. I figured you'd be amused ot see this development that probably 95% of hobbyist's that buy and sell are not aware of ....yet.

can someone explain how an NFT consumes this much energy? Comparable to what? Not existing? How does a single NFT do that? Just by being hosted, or the energy consumed in the act of creating and the energy consumed in selling it online? This seems suspect to me. How does that compare to posting on FB, sending a tweet, hosting and posting a page of comic art on CAF? Me sending this post? (don't' answer that! I anticipate the snarky remarks already! ) Seems like there some basic laws of physics being broken here. I'm not arguing with the idea that it has an environmental impact, but I want to know that in terms of other comparable digital entities. I know bitcoin mining used to consume processor speed back in the day, and that in theory consumed energy, and there were many programs that leeched unused processor speed to mine in the background, to it's true energy consumption is a little ethereal, because if that computer on the grid was on and doing something else regardless, then it wasn't using any MORE energy and you could argue there's so much unused or underused processing power and therefore energy that making more things with the same energy cost is more efficient. Also, depending on how it's hosted, there are server platforms that are carbon neutral, or near so, like the Apple server farms.

yes, and factor in sales tax it get's worse, but I'm not talking about, and neither is the OP the individual metrics of P&L but the market perception of value being manipulated that obscure the BP etc that goes into that price. You flip a book 3x through an auction house, 60%+ of the perceived FMV was entirely the BP. When the market is driven by auction sales, the FMV perception accelerates much more steeply.

how is this really any different than what happens with HA with every single auction? I sell a $3000 book through ha, it hammers at $3600 with juice. I only get $2550 from HA after their sellers fee. GPA says it sold for $3600, but I only made $2500. Oh, and the seller "bought" it will money they had in their HA account from something they consigned, so it wasn't really cash.

we need a relief emoji.

https://www.thetaxadviser.com/issues/2019/nov/taxation-collectibles.html https://www.gtreilly.com/blog/article/selling-that-original-warhol-prepare-for-tax-bite-on-your-collectible "By law, the maximum tax rate on the sales of collectibles (after netting of any losses) is 28% or the rate at which the gain would be taxed if it were ordinary income, if lower. When taxpayers have ordinary income, collectible gains, unrecaptured Sec. 1250 gains and other long-term capital gains, the order in which each category of income is applied matters. Ordinary income is taxed first, followed by gains subject to the 25% rate, followed by gains subject to the 28% rate, and then gains subject to the 0%/15%/20% rates. In some cases, the marginal tax rate on collectible gains can exceed 28% due to the alternative minimum tax (AMT) or the Sec. 199a qualified business income (QBI) deduction." I don't pretend to understand all of this, but it appears to me that portion of your income would be taxed differently depending on the source or that income. If that income is from collectibles, they can be taxed at $28%.

so, let's say you buy a slab, crack and press and resubmit: Say it was a $1000 9.4, cost to ship, insure press and resub cost? I dunno $100. That's $1100 COGs. You flip it for $1600. after auction fees etc maybe you clear $1360. Subtract your $1100 COGs, you net. $260. That's 24% ROI. People have done more work for less. Now the IRS takes 28% of that at the higher collectibles tax rate, so now you only made $213. So your ROI is now 19%. Was it worth the hassle and paperwork and time? Scale back that example to books with a $100 COGs with similar ROI. Your talking about netting under $20. Under $10 on a $50 items. I think that will dissuade many casual sellers on they realize their effort is mostly to break even. Maybe this takes out a lot of the flippers, which slows down the market. this may be eBay's last great year. But a lot of the sellers that are fully disclosing all their sales and track all their expenses, this may not impact you directly, but indirectly, you're sales in 2022 may take a hit once the casual hobbyist discovers that the liquidity and maximal profit potential has been harmed by these new reporting rules. These taxes were never factored into their purchases when collecting or speculating. No more flipping that 1st Carnage appearance you bought 5 of and figured you could flip for 2x or 3x down the road for quick cash free and clear. Maybe it's a boon for dealers in the sense that now collectors will want to sell to dealers directly, cash under the table, so you won't be competing with the a frothy auction market or BIN on eBay. My prediction is this will finally slow the market down, that everyone had been predicting for years but never came. The party's over. Many will find the idea of paying 28% in taxes as egregious. it's a disincentive to conduct business.

@greggy, how come you don't have any nice copies like Picky Collector?

@ChasingKingKirby- I've been where you are at- lost mom 9 years ago and my dad 6 weeks ago. For those 9 years everything in my parents house stayed the way it was when she died. Dad couldn't deal with it. Now that's he's gone my brother and I had to sift through and throw away 53 years of their life. Its been like losing mom all over again in the process, so you are doing the right thing to go through things now. Putting it off down the road when your dad is gone is a double whammy I wish on no one. also, you will be grateful to have him still here as you go through things, because he's there to ask questions and provide context to things you might not know. This is what my brother and I had to struggle with, and it sucks. Take care of yourself and your dad.

why would they want to reveal their max bid to Albert?

@vodou well here's the ticking bomb you've been warning about in the OA thread. (see first post) Time to switch to NFT's and Bitcoin.