Pay Pal which means eBay and IRS 6050W startes 01/01/2011

[blazingbob]

Are you a hobby or a business?

 

Business would have a loss for the year which is deductible on your taxes.

 

If you are selling your personal collection and came up with a loss and you have good records I believe this would be a long term loss. Again, clear records with receipts.

[JiveTurkeyMoFo]

I like this "Keep good records, and pay taxes on your profits. To do otherwise is to defraud the government". You are stating this to some people who use Paypal "personal" to conduct business transactions in order to defraud Paypal out of their fees.

 

[passion4comics]

Are you a hobby or a business?

 

Business would have a loss for the year which is deductible on your taxes.

 

If you are selling your personal collection and came up with a loss and you have good records I believe this would be a long term loss. Again, clear records with receipts.

 

Just another way for the IRS to nickle and dime you. How many people can show what they paid years ago? If you bought an AF15 6 years ago and sell it the IRS is going to try and say it's all income if it can.

 

I do this as a hobby, but for $400 anyone can open a corp as a buffer.

[Transplant]

Hobby losses can only be deducted to the extent of hobby income. But getting your tax advise here is nuts. Consult a tax attorney or your CPA.

[G.A.tor]

Now isn't there a business reinvestment deduction, whereby if you make a sale but then reinvest the money within 30 days in new product you are not responsible for any or all the taxes?

 

An accountant friend was telling me about this a year ago, but with many of the changes to the tax laws I'm not sure if this is still around.

goes to COGS...

[passion4comics]

Hobby losses can only be deducted to the extent of hobby income. But getting your tax advise here is nuts. Consult a tax attorney or your CPA.

 

Agreed 100%

[NewWorldOrder]

+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

Of course I don't want to pay Taxes on my comic books sales.

 

For a dealer who makes their entire living on comics well that is their #1 job, so normal taxes applies yada yada yada.

 

For most of us that buy/sell comics on the side I would like to think this is our fun "free" money to use to pay for fun things or just keep.

 

I not saying the government is wrong in doing this I just wanted to discuss.

 

Of course people will try to hide this with net losses or they sold it for or less than what they paid.

 

Oh and Mike you know my name is John not Johnny do gooder.

[NewWorldOrder]

+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

+3

 

Keep good records, and pay taxes on your profits. To do otherwise is to defraud the government.

 

 

Don't get all high and mighty.

 

Heck the government has defrauded me with all those bailouts to fraud companies like AIG.

 

Oh wait I used to work for AIG.

[JiveTurkeyMoFo]

+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

Of course I don't want to pay Taxes on my comic books sales.

 

For a dealer who makes their entire living on comics well that is their #1 job, so normal taxes applies yada yada yada.

 

For most of us that buy/sell comics on the side I would like to think this is our fun "free" money to use to pay for fun things or just keep.

 

I not saying the government is wrong in doing this I just wanted to discuss.

 

Of course people will try to hide this with net losses or they sold it for or less than what they paid.

 

Oh and Mike you know my name is John not Johnny do gooder.

 

No offense John, but after a certain threshold, the income you've derived from your sales on a year-to-year basis should've been reported anyway. This law isn't really doing anything new, other then giving the IRS another auditing tool to make sure people that are running businesses are paying their fair share.

 

And yes, if you are buying low and selling high, tracking your expenses and all that, its a business. If the point is to make money (even if its just to buy more comics, not neccessarily to supplement your normal household income), then its fully taxable in the eyes of the IRS.

 

And certainly don't listen to me or anyone else, but consulting with a good CPA is never a bad idea.

 

 

 

[passion4comics]

I just don't like the idea of government prying into hobbyist buys/sells. A business would be operating under a corp of LLC is most cases.

 

Remember that comics worth thousands can have a 10-12 cent price tag on its cover. Without detailed documentation an enthusiastic IRS agent can create a nightmare for someone.

[JiveTurkeyMoFo]

I just don't like the idea of government prying into hobbyist buys/sells. A business would be operating under a corp of LLC is most cases.

 

Remember that comics worth thousands can have a 10-12 cent price tag on its cover. Without detailed documentation an enthusiastic IRS agent can create a nightmare for someone.

 

Yes, they can. Which is why detailing your transactions and keeping your receipts is so important.

[NewWorldOrder]

+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

Of course I don't want to pay Taxes on my comic books sales.

 

For a dealer who makes their entire living on comics well that is their #1 job, so normal taxes applies yada yada yada.

 

For most of us that buy/sell comics on the side I would like to think this is our fun "free" money to use to pay for fun things or just keep.

 

I not saying the government is wrong in doing this I just wanted to discuss.

 

Of course people will try to hide this with net losses or they sold it for or less than what they paid.

 

Oh and Mike you know my name is John not Johnny do gooder.

 

No offense John, but after a certain threshold, the income you've derived from your sales on a year-to-year basis should've been reported anyway. This law isn't really doing anything new, other then giving the IRS another auditing tool to make sure people that are running businesses are paying their fair share.

 

And yes, if you are buying low and selling high, tracking your expenses and all that, its a business. If the point is to make money (even if its just to buy more comics, not neccessarily to supplement your normal household income), then its fully taxable income in the eyes of the IRS.

 

And certainly don't listen to me or anyone else, but consulting with a good CPA is never a bad idea.

 

 

 

I get it George. (thumbs u

 

I have an CPA accountant and we discuss everything.

 

Trust me I am keeping track starting 1-1-2011 either way.

[inconceivable]

It's not just Ebay sales that Paypal will accumulate. In evaluating whether a Paypal account holder has met the $20k and 200 transactions thresholds for a given year, ALL Paypal transactions, including those on the CGC boards, will be counted. It tracks by social security number, not the forum on which the sale is made.

 

I can see sales threads being reduced in 2011 with this bit of news and no "free" money.

 

Maybe the trade threads will increase.

 

Dan

[JiveTurkeyMoFo]

It's not just Ebay sales that Paypal will accumulate. In evaluating whether a Paypal account holder has met the $20k and 200 transactions thresholds for a given year, ALL Paypal transactions, including those on the CGC boards, will be counted. It tracks by social security number, not the forum on which the sale is made.

 

I can see sales threads being reduced in 2011 with this bit of news and no "free" money.

 

Maybe the trade threads will increase.

 

Dan

 

Entirely possible.

 

However, I can actually see the sales threads increase significantly next year, especially if people around here trust one another enough to pay with MO and checks (which most do). Its getting really expensive to sell on eBay anyway (12% off the top in FV and Paypal fees is about average).

[Comic Book Guy]

 

The government just wants another piece of our pie because the more it eats the more it has to have. Yet when it comes time for them to give us back a piece there is no guarantee when we will ever get it. Here in California we get IOU's and promises to pay.

 

Anyone remember this from last year...

 

 

California State Controller John Chiang announced on January 26 that California's bills exceed its tax revenues and credit line and that the state is going to print its own money known as IOUs. The template is already designed.

 

Instead of receiving their state tax refunds in dollars, California residents will receive IOUs. Student aid and payments to disabled and needy will also come in the form of IOUs.

 

 

And things are only getting worse...

[Transplant]

It's not just Ebay sales that Paypal will accumulate. In evaluating whether a Paypal account holder has met the $20k and 200 transactions thresholds for a given year, ALL Paypal transactions, including those on the CGC boards, will be counted. It tracks by social security number, not the forum on which the sale is made.

 

I can see sales threads being reduced in 2011 with this bit of news and no "free" money.

 

Maybe the trade threads will increase.

 

Dan

Trades and bartering in general are still taxable. Whatever you paid for the book is your cost and the value of the book you get in trade is your amount realized. The difference between the two is your income and is due to be reported to the IRS.

[JiveTurkeyMoFo]

 

The government just wants another piece of our pie because the more it eats the more it has to have. Yet when it comes time for them to give us back a piece there is no guarantee when we will ever get it. Here in California we get IOU's and promises to pay.

 

Anyone remember this from last year...

 

 

California State Controller John Chiang announced on January 26 that California's bills exceed its tax revenues and credit line and that the state is going to print its own money known as IOUs. The template is already designed.

 

Instead of receiving their state tax refunds in dollars, California residents will receive IOUs. Student aid and payments to disabled and needy will also come in the form of IOUs.

 

 

 

And things are only getting worse...

 

Yep, Cali is screwed. Many states are in bad shape, but none as bad as there.

 

That's what happens when you spend, spend, spend and make no provisions to be fiscally responsible. When the tough times come, you're hosed.

 

But at least they'll have ebonics curriculums in the classroom.

[Jeffreykli]

+1 to Bob.

 

If you haven't been lying on your taxes, this is no big deal at all.

+2

 

And I'm laughing that SoT was posting on a public forum about how this will mean the end of hiding income from the IRS. 1) They like it when you admit to crimes in public places. 2) That's kind of the point of the new reporting.

 

+3

 

Keep good records, and pay taxes on your profits. To do otherwise is to defraud the government.

 

Worthy of a bump. Nothing should change because of the new procedure. If you're a dealer, whether part-time or not, you are supposed to report the revenue and expenses to the IRS. Even if you're not a dealer, you're supposed to report gains as capital gains if you've made a profit on that particular transaction.

 

Again, nothing has changed except the ability of people who may be on the line between a dealer and a collector to hide on the side of a collector and not report any gains.

 

Note that the burden of keeping records has always been on the individual's side; you have to prove all of your income, revenue, expenses, and deductions. No receipts or evidence means the presumption is that any deposits are income and any expenses are disallowed.

[binarysunrise]

Trust me I am keeping track starting 1-1-2011 either way.

 

Did I read this wrong? I thought that on 1-1-2011 they would report your 2010 sales. But is it the other way around? On Jan 1, they'll *start* recording for the 2011 year?

[Bosco685]

Trust me I am keeping track starting 1-1-2011 either way.

 

Did I read this wrong? I thought that on 1-1-2011 they would report your 2010 sales. But is it the other way around? On Jan 1, they'll *start* recording for the 2011 year?

I'm going through the PayPal amendments right now to read some of the recent changes.

 

Interesting.

 

•Amendment to the PayPal User Agreement

Refund Fee. Section 8.5 (Additional Fees) is amended to add a new refund fee. If you refund a Purchase Payment, we will retain the Fixed Fee portion of the Purchase Payment Fee. The buyer’s Account will be credited with the full Purchase Payment amount and the Fixed Fee portion of the Purchase Payment Fee will be deducted from your Account in addition to the amount of the refunded payment. The Fixed Fee will depend on the currency of the Purchase Payment and is listed in 8.4©.