Wow - Income Tax As An Argument for Lowballing - What Next?!?!?

[dupont2005]

What a d-bag. There are so many variables how could he even say what your online listing fees or taxes on an item would be? He just assumes the maximum imaginable for both?

 

Is income earned through comic sales really 30%? Then why are Capital Gains so much lower? It's basically the same thing.

 

You might want to brush up on your tax law before offering advice.

Income from the sale of anything, collectibles in particular, is not the same as a capital gains.

Advice doesn't end with a question mark usually.

[HugeRosen]

Tax would depend on the amount of time held (short term vs long term). If long term, then 28%. But he would only have to report the gain. In his scenario, he would've had to pay $0 for the comic for him to be correct. Or he has the worst accountant in history giving him advice.

[shadroch]

Tax would depend on the amount of time held (short term vs long term). If long term, then 28%. But he would only have to report the gain. In his scenario, he would've had to pay $0 for the comic for him to be correct. Or he has the worst accountant in history giving him advice.

 

 

Incorrect. Care to try again? Comics, and most other collectibles are not eligible for long term capital gains. They are treated as income, and taxed at your income rate. If you have proof of what you paid for it, you only pay on the difference between what you paid and what you sold it for, but you need to have proof- a bill of sale, a CC reciept, ect, ect.

[stroszek]

Tax would depend on the amount of time held (short term vs long term). If long term, then 28%. But he would only have to report the gain. In his scenario, he would've had to pay $0 for the comic for him to be correct. Or he has the worst accountant in history giving him advice.

 

 

Incorrect. Care to try again? Comics, and most other collectibles are not eligible for long term capital gains. They are treated as income, and taxed at your income rate. If you have proof of what you paid for it, you only pay on the difference between what you paid and what you sold it for, but you need to have proof- a bill of sale, a CC reciept, ect, ect.

 

Has there been a recent change in tax law?

 

AFAIK, Collectibles are capital gains, but they are a separate category and are currently taxed at the old cap gains rate of 28%. You cannot write off losses from any category other than collectibles. If held less than a year the profits would generally be considered as regular income. At least that's true for collectors, i.e. folks not in it as a business.

 

I think collectibles and some small business stocks are the only assets still subject to the 28% rate which stinks, but that's how it is.

[Sqeggs]

Tax would depend on the amount of time held (short term vs long term). If long term, then 28%. But he would only have to report the gain. In his scenario, he would've had to pay $0 for the comic for him to be correct. Or he has the worst accountant in history giving him advice.

 

 

Incorrect. Care to try again? Comics, and most other collectibles are not eligible for long term capital gains. They are treated as income, and taxed at your income rate. If you have proof of what you paid for it, you only pay on the difference between what you paid and what you sold it for, but you need to have proof- a bill of sale, a CC reciept, ect, ect.

 

Has there been a recent change in tax law?

 

AFAIK, Collectibles are capital gains, but they are a separate category and are currently taxed at the old cap gains rate of 28%. You cannot write off losses from any category other than collectibles. If held less than a year the profits would generally be considered as regular income. At least that's true for collectors, i.e. folks not in it as a business.

 

I think collectibles and some small business stocks are the only assets still subject to the 28% rate which stinks, but that's how it is.

 

+1

[Sqeggs]

Tax would depend on the amount of time held (short term vs long term). If long term, then 28%. But he would only have to report the gain. In his scenario, he would've had to pay $0 for the comic for him to be correct. Or he has the worst accountant in history giving him advice.

 

 

Incorrect. Care to try again? Comics, and most other collectibles are not eligible for long term capital gains. They are treated as income, and taxed at your income rate. If you have proof of what you paid for it, you only pay on the difference between what you paid and what you sold it for, but you need to have proof- a bill of sale, a CC reciept, ect, ect.

 

Has there been a recent change in tax law?

 

AFAIK, Collectibles are capital gains, but they are a separate category and are currently taxed at the old cap gains rate of 28%. You cannot write off losses from any category other than collectibles. If held less than a year the profits would generally be considered as regular income. At least that's true for collectors, i.e. folks not in it as a business.

 

I think collectibles and some small business stocks are the only assets still subject to the 28% rate which stinks, but that's how it is.

 

Actually, given the rates likely next year, 28% may seem like the good old days!

[stroszek]

I'm a little unclear, however, on how your income tax bracket affects it. I _think_, but am not certain by any means, that the cap gains rate can't be higher than your income tax bracket. So if you're in the 15% income tax bracket, you still pay 15% on the collectible gain. But I need to triple check that.

[Weird Paper]

I think cap gains on all collectibles is something like 28%.

[shadroch]

Tax Relief Act of 1997 excludes collectibles from long term capital gains.

The law is 15 years old.

 

[stroszek]

Tax Relief Act of 1997 excludes collectibles from long term capital gains.

The law is 15 years old.

 

There is a long-term cap gains (one year plus) rate for collectibles, but it is 28% rather than the 15% (or lower) for stocks and many other asset classes. Or at least that's been my understanding of it.

[Weird Paper]

Tax Relief Act of 1997 excludes collectibles from long term capital gains.

The law is 15 years old.

I think this is the opposite of true. I'm not an accountant, but my accountant is.

[shadroch]

My phrasing was poor. The TRA excludes collectibles from the lower long term capital gains act, not from any C.G.

[shadroch]

Tax Relief Act of 1997 excludes collectibles from long term capital gains.

The law is 15 years old.

I think this is the opposite of true. I'm not an accountant, but my accountant is.

 

You don't need to be an accountant to use Google. Try it sometime.

[Weird Paper]

My phrasing was poor. The TRA excludes collectibles from the lower long term capital gains act, not from any C.G.

Yeah, I misunderstood you. I think we were making the same point.

[the blob]

well, paying in cash has always been used as a basis for a discount...pushing for a 30% discount, however, is a bit much, though i have certainly had many a dealer cry when I tried to pay via CC even when they take CCs (and have a big sign saying so). particularly when it implicitly assumes you paid nothing for the book. you'd only pay income taxes on your PROFIT, and the slabbing costs are part of your costs as well.

 

and, of course, a cash transaction is taxable too, but there is no paper trail like with a check, so.....

 

 

[the blob]

Tax would depend on the amount of time held (short term vs long term). If long term, then 28%. But he would only have to report the gain. In his scenario, he would've had to pay $0 for the comic for him to be correct. Or he has the worst accountant in history giving him advice.

 

 

Incorrect. Care to try again? Comics, and most other collectibles are not eligible for long term capital gains. They are treated as income, and taxed at your income rate. If you have proof of what you paid for it, you only pay on the difference between what you paid and what you sold it for, but you need to have proof- a bill of sale, a CC reciept, ect, ect.

 

you only need proof like that in the unlikely event that you are audited. it's not like you need to attach this stuff to your taxes.

[thehumantorch]

Sorry, this buyer is obviously trying to pay as little as possible. Quite the opposite of his ad.

 

He is correct to point out that auction sites take their cut but his tax argument ignores all of the costs that he could write off including the cost of the books, gas, selling fees, business costs, etc. He would hardly pay 30% on the total resale amount.

 

I would think most full-time dealers expect to pay between 70% and 90% for key books. Would they rather pay 50%? Sure but that is unlikely if the seller is knowledgeable.

[shadroch]

The buyer was trying to pay as little as possible?

Shame on him. Why, thats down right un-American.

People like that should be shot. then drawn and quartered, and their bodies left to rot on a pole. Imagine if his degenerate way of thinking was to become common?

[HugeRosen]

Without getting technical about what is considered a 'hobby' or whether you are a 'business' according to IRS and the 8,000 other tax laws, comic books are typically considered collectibles and subject to the 28% tax rate if held for long term. See attached article:

 

http://www.jklasser.com/articles/investing-in-comic-books-coins-and-other-collectibles/

 

I'm not an accountant, but I did stay in a Holiday Inn Express last night.

[EastEnd]

Without getting technical about what is considered a 'hobby' or whether you are a 'business' according to IRS and the 8,000 other tax laws, comic books are typically considered collectibles and subject to the 28% tax rate if held for long term. See attached article:

 

http://www.jklasser.com/articles/investing-in-comic-books-coins-and-other-collectibles/

 

I'm not an accountant, but I did stay in a Holiday Inn Express last night.

 

Agreed, assuming your comic book activity is not a business under the tax code, gains from the sale of collectibles (including comics) are generally taxed at 28%.