Tax law change for Jan 1 2011

[BrianR]

"The 1099 rule is not entirely new. Under long-standing law, businesses have to file tax forms when they buy services from individual-owned businesses or partnerships. The new law extends the requirement to cover the purchase of any goods from any type of supplier. "

 

This is where it hits the individual as they are the suppliers of goods to these consignment companies.

 

[gaz973]

Woo hoo, I'm safe in the UK.

 

Buy from me.

Shipping is to expensive.

 

Bah, cheapskate.

[gaz973]

Woo hoo, I'm safe in the UK.

 

Buy from me.

 

Next we have a beer I'll... oh, wait...

 

[BrianR]

Getting back to the comic aspect so this doesn't go into the watercooler.

 

Do you think this will impact the supply of comics coming to market through venues like C- link.

 

 

Also is the fact these sales are going to be recorded better, going to deter people from shilling / buying back books to potentially raise the GPA so they can make more money?

[the blob]

Getting back to the comic aspect so this doesn't go into the watercooler.

 

Do you think this will impact the supply of comics coming to market through venues like C- link.

 

 

Also is the fact these sales are going to be recorded better, going to deter people from shilling / buying back books to potentially raise the GPA so they can make more money?

 

well, depending on when purchased, these books may be selling for big losses on c-link, so it might be in the best interest for many involved to keep track of all of this for tax write-offs, at least against gains on other books.

[P Keel]

A 1099 is self employed income,so can you also claim comic book losses then? So how does the hobby tax come into effect? as in being better,or obsolete? I see nothing but swiss cheese.

[ImageMask]

I claim all my sales now so it will have no impact on me.

 

 

What about the side bizness?

[MCMiles]

I claim all my sales now so it will have no impact on me.

 

A dirtbag puppy kicker like you - I don't believe it.

[ImageMask]

I claim all my sales now so it will have no impact on me.

 

A dirtbag puppy kicker like you - I don't believe it.

 

[Jeffro.]

That's a lot of *spoon*

 

Well, it is government after all.

[namisgr]

Could one of you tax guys comment on this in relation to comic collectors? I was under the impression that as a collector selling comics after holding them long-term, I was subject to the Federal collectibles gain tax of 28%. I send in extra witholding to comply - would a 1099 form also be necessary for a collector with a long-term gain?

[ComicConnoisseur]

Could one of you tax guys comment on this in relation to comic collectors? I was under the impression that as a collector selling comics after holding them long-term, I was subject to the Federal collectibles gain tax of 28%. I send in extra witholding to comply - would a 1099 form also be necessary for a collector with a long-term gain?

So if you add that to the 8 to 15 percent the auction houses usually charge then that means your looking at an almost 40 percent loss of your collectable over the years,

interesting

Please elaborate more.

[namisgr]

Could one of you tax guys comment on this in relation to comic collectors? I was under the impression that as a collector selling comics after holding them long-term, I was subject to the Federal collectibles gain tax of 28%. I send in extra witholding to comply - would a 1099 form also be necessary for a collector with a long-term gain?

So if you add that to the 8 to 15 percent the auction houses usually charge then that means your looking at an almost 40 percent loss of your collectable over the years,

interesting

Please elaborate more.

 

Your math is off slightly. Any commission fees and other expenses associated with selling one's collectibles are subtracted along with the original purchase costs from the gross proceeds in calculating the long-term gain. In other words, you don't have to pay an additional 28% on the auction house cut, since that's their profit and their tax liability.

 

Yes, taxes are a hit on collectibles profitability. Long-term investment gains in the stock, bond, mutual fund, and real estate markets are subject to a much lower tax burden.

 

[ComicConnoisseur]

Could one of you tax guys comment on this in relation to comic collectors? I was under the impression that as a collector selling comics after holding them long-term, I was subject to the Federal collectibles gain tax of 28%. I send in extra witholding to comply - would a 1099 form also be necessary for a collector with a long-term gain?

So if you add that to the 8 to 15 percent the auction houses usually charge then that means your looking at an almost 40 percent loss of your collectable over the years,

interesting

Please elaborate more.

 

Your math is off slightly. Any commission fees and other expenses associated with selling one's collectibles are subtracted along with the original purchase costs from the gross proceeds in calculating the long-term gain. In other words, you don't have to pay an additional 28% on the auction house cut, since that's their profit and their tax liability.

 

Yes, taxes are a hit on collectibles profitability. Long-term investment gains in the stock, bond, mutual fund, and real estate markets are subject to a much lower tax burden.

So in layman terms if I sold a mid grade AF 15 for about 10 grand then the IRS would want a 28 percent cut?

My strategy is more of a long term collecting goal and not a quick flip,that`s why I am asking.

[EastEnd]

Could one of you tax guys comment on this in relation to comic collectors? I was under the impression that as a collector selling comics after holding them long-term, I was subject to the Federal collectibles gain tax of 28%. I send in extra witholding to comply - would a 1099 form also be necessary for a collector with a long-term gain?

 

The new 1099 reporting requirement is on the purchaser not the seller. If the purchaser, and the sale, meets the criteria, the purchaser would have to prepare and issue a 1099 detailing the amount paid on the purchase to the IRS and a duplicate to the seller... theoretically, the IRS would then reconcile the 1099s received from all purchasers for a particular seller to the sellers personal tax return when filed.

 

As I mentioned though, this provision has the small business community up in arms and it's looking pretty likely that it will be repealed for small businesses before it takes effect in 2012

 

Hope that helps.

[whetteon]

If a tax law like the one mentioned in this thread goes into effect, I simply will sell my books through this website. eBay would be hurt in the long term because I suspect many current sellers would just go underground to personal forums/websites like these for their hobby needs. No one likes the hassle of paperwork for just selling a funny book. This is the equivalent to getting blood from a stone when dealing with the American business-focused people. We learn to adapt.

 

And for the record, I vote anyone out of office who likes to dig into my pockets for the answers to their problems. Another good place to cut these expenditures is to cap Congress and Senate salaries/benefits. But I doubt that will ever happen.

[ComicConnoisseur]

If a tax law like the one mentioned in this thread goes into effect, I simply will sell my books through this website. eBay would be hurt in the long term because I suspect many current sellers would just go underground to personal forums/websites like these for their hobby needs. No one likes the hassle of paperwork for just selling a funny book. This is the equivalent to getting blood from a stone when dealing with the American business-focused people. We learn to adapt.

 

And for the record, I vote anyone out of office who likes to dig into my pockets for the answers to their problems. Another good place to cut these expenditures is to cap Congress and Senate salaries/benefits. But I doubt that will ever happen.

Ebay actually is against this bill, they sent me a email asking me to sign as a form of protest, so it`s not Ebays idea but the government.

If this ever went thru it would make those post 1980`s books even less desirable to sell. Who wants to do paperwork for hundreds of $5 dollar books?

[namisgr]

So in layman terms if I sold a mid grade AF 15 for about 10 grand then the IRS would want a 28 percent cut?

 

No, that's your gross proceeds. How much did you pay for the book? What were your expenses selling it? Did you pay to insure the book while owning it? These are your expenses that need to be subtracted from your sale price to determine your gain. Gain = how much money you made.

[ComicConnoisseur]

So in layman terms if I sold a mid grade AF 15 for about 10 grand then the IRS would want a 28 percent cut?

 

No, that's your gross proceeds but not your long-term gain. How much did you pay for the book? What were your expenses selling it? Did you pay to insure the book while owning it? These are your expenses that need to be subtracted from your sale price to determine your gain.

thanks for clearing it up. (thumbs u

[whetteon]

If a tax law like the one mentioned in this thread goes into effect, I simply will sell my books through this website. eBay would be hurt in the long term because I suspect many current sellers would just go underground to personal forums/websites like these for their hobby needs. No one likes the hassle of paperwork for just selling a funny book. This is the equivalent to getting blood from a stone when dealing with the American business-focused people. We learn to adapt.

 

And for the record, I vote anyone out of office who likes to dig into my pockets for the answers to their problems. Another good place to cut these expenditures is to cap Congress and Senate salaries/benefits. But I doubt that will ever happen.

Ebay actually is against this bill, they sent me a email asking me to sign as a form of protest, so it`s not Ebays idea but the government.

If this ever went thru it would make those post 1980`s books even less desirable to sell. Who wants to do paperwork for hundreds of $5 dollar books?

 

I didn't meant eBay would be hurt because they were the ones supporting the bill - but instead eBay would be hurt business-wise as sellers like myself choose other venues to avoid paying 1099 fees.