Copper's Heating/Selling Well on Ebay 33 33

[divad]

5 hours ago, Kevin76 said:

Marvel Graphic Novel 4 (1st New Mutants) I just sold a 9.8 for $725.00, paid $50 for and it came back a 9.8. ha

Very nice work!

[divad]

34 minutes ago, 1Cool said:

Everyone sells differently and has different expectations.  If you can sell high grade raws for about CGC graded prices - great job and I see why you stay the course.  I usually have to get the books graded to get close to graded prices so I sell the ungraded at a discount and sell 200-300 books a month.  I'd get buried in books if I sold a long box a year so I go a different route - both ways make money and are not wrong. 

This is true, but I spend less time packing and shipping. 

[divad]

36 minutes ago, 1Cool said:

 

11 hours ago, FlyingDonut said:

Enh. If you buy a long box for $50 and sell four books for $75, I would agree with Divad that the rest of the books have a negative cost.

I disagree.  The cost is set.  You spent $50 so the cost is $50 or $50/# of books if you want to look at cost per book.  Now how much you make as a total or per books is up to how much they sell for and the 4/$75 is of course included in that equation.

 

Well, that's certainly ONE way to look at it.

 

[W16227]

23 minutes ago, 1Cool said:

I disagree.  The cost is set.  You spent $50 so the cost is $50 or $50/# of books if you want to look at cost per book.  Now how much you make as a total or per books is up to how much they sell for and the 4/$75 is of course included in that equation.

Probably somewhere in the middle depending on how you want to run your accounting... If you just want to average your buys against the # of books -- you are correct.  But this means when buying a mixed collection, you will slant your profit a lot based on which books you bring to market. You average $1 a book in a long --- the 10 that are $100+ books will have a significantly higher tax burden. The rest - if they are in your bargain bins they are at a loss. Some may look at that and have a good way to balance the sales and profits to not take a big hit on tax day ( by which stock they are selling).

If you are looking at "free cash flow" - then thinking of the books as free ( or less than free) --- a "negative" value works. From a COGS standpoint ( thinking taxes here ) --- this does not work. You can mark the value down to zero - but the IRS would probably not agree with a negative inventory cost...

For a mixed lot to ensure at least some average costs basis -- I pull all of the better books and assign a value of .10 ( unbagged) to .20 ( bagged/boarded) cheap stock.  The rest of the buy - split up the remaining costs based on relative values of the books.  This gives me a balanced accounting - and a way to assign the profit in the case of books sold that cannot be tracked back to a buy ( happens sometimes)...

Of course - for those too small to do the taxes ( or those who skip that step) --- does not really matter.....

 

 

 

 

[divad]

1 hour ago, Aweandlorder said:

show me  sold listings and I'll eat my words up

Why would I bother showing YOU anything?

[1Cool]

1 minute ago, W16227 said:

Probably somewhere in the middle depending on how you want to run your accounting... If you just want to average your buys against the # of books -- you are correct.  But this means when buying a mixed collection, you will slant your profit a lot based on which books you bring to market. You average $1 a book in a long --- the 10 that are $100+ books will have a significantly higher tax burden. The rest - if they are in your bargain bins they are at a loss. Some may look at that and have a good way to balance the sales and profits to not take a big hit on tax day ( by which stock they are selling).

If you are looking at "free cash flow" - then thinking of the books as free ( or less than free) --- a "negative" value works. From a COGS standpoint ( thinking taxes here ) --- this does not work. You can mark the value down to zero - but the IRS would probably not agree with a negative inventory cost...

For a mixed lot to ensure at least some average costs basis -- I pull all of the better books and assign a value of .10 ( unbagged) to .20 ( bagged/boarded) cheap stock.  The rest of the buy - split up the remaining costs based on relative values of the books.  This gives me a balanced accounting - and a way to assign the profit in the case of books sold that cannot be tracked back to a buy ( happens sometimes)...

Of course - for those too small to do the taxes ( or those who skip that step) --- does not really matter.....

 

 

 

 

 

[divad]

2 minutes ago, W16227 said:

Probably somewhere in the middle depending on how you want to run your accounting... If you just want to average your buys against the # of books -- you are correct.  But this means when buying a mixed collection, you will slant your profit a lot based on which books you bring to market. You average $1 a book in a long --- the 10 that are $100+ books will have a significantly higher tax burden. The rest - if they are in your bargain bins they are at a loss. Some may look at that and have a good way to balance the sales and profits to not take a big hit on tax day ( by which stock they are selling).

If you are looking at "free cash flow" - then thinking of the books as free ( or less than free) --- a "negative" value works. From a COGS standpoint ( thinking taxes here ) --- this does not work. You can mark the value down to zero - but the IRS would probably not agree with a negative inventory cost...

For a mixed lot to ensure at least some average costs basis -- I pull all of the better books and assign a value of .10 ( unbagged) to .20 ( bagged/boarded) cheap stock.  The rest of the buy - split up the remaining costs based on relative values of the books.  This gives me a balanced accounting - and a way to assign the profit in the case of books sold that cannot be tracked back to a buy ( happens sometimes)...

Of course - for those too small to do the taxes ( or those who skip that step) --- does not really matter.....

 

 

 

 

There you go!

[divad]

1 minute ago, 1Cool said:

 

Very relevant this morning, indeed!

[FlyingDonut]

1 hour ago, manetteska said:

So the purchase price of a book is determined once you sell other stuff to cover it? OK...

That's how I look at my cost - I do things by collections by buys. Once I hit my number for my  cost (usually a 3x multiplier) then the COGS for the remaining items is zero and I can discount them.

[ygogolak]

12 hours ago, divad said:

I don't do buildings . . . but it shows that you really don't understand the marketplace.   

 

Is it nicer than this book?  Hands down!

 

 

On 11/6/2017 at 5:43 PM, 1Cool said:

Your buyers are insane.  Even if the book comes back 9.8 they would lose money on the deal in most cases.  I’d love to see how many you sell each month but with 10 accounts it would be too much trouble to figure it out.

Insane indeed 

https://m.ebay.com/itm/Legends-5-NM-CAPTAIN-MARVEL-SUPERMAN-BATMAN-FLASH-SUICIDE-SQUAD-DC-Comics/302503449337?ssPageName=STRK%3AMEBIDX%3AIT&_trksid=p2055119.m1438.l2649

[1Cool]

2 minutes ago, ygogolak said:

 

Insane indeed 

https://m.ebay.com/itm/Legends-5-NM-CAPTAIN-MARVEL-SUPERMAN-BATMAN-FLASH-SUICIDE-SQUAD-DC-Comics/302503449337?ssPageName=STRK%3AMEBIDX%3AIT&_trksid=p2055119.m1438.l2649

But but - that's a 9.6 and his is a 9.8! 

[F For Fake]

6 minutes ago, FlyingDonut said:

That's how I look at my cost - I do things by collections by buys. Once I hit my number for my  cost (usually a 3x multiplier) then the COGS for the remaining items is zero and I can discount them.

Yes, this exactly.

[manetteska]

6 minutes ago, FlyingDonut said:

That's how I look at my cost - I do things by collections by buys. Once I hit my number for my  cost (usually a 3x multiplier) then the COGS for the remaining items is zero and I can discount them.

So even using the after-selling-determine-purchase-price math, the remaining items cost $0, not "less than zero", right?

[ygogolak]

10 minutes ago, manetteska said:

So even using the after-selling-determine-purchase-price math, the remaining items cost $0, not "less than zero", right?

I think someone comes to your house and pays you to hold them.

[W16227]

1 hour ago, manetteska said:

1 hour ago, FlyingDonut said:

a 3x multiplier) then the COGS for the remaining items is zero and I can discount them.

So even using the after-selling-determine-purchase-price math, the remaining items cost $0, not "less t

well - depends what you mean by costs, ----

Your cost basis - ( with US taxes) - since we are buying something in bulk - but with varying values, you get a LOT of leeway as to how you handle the inventory cost per item.  As long as you account for all of the purchase price - and have at least some realism involved with costs you will be good ( and you have to show consistency)....

An example of what not to do ( though you might be able to get away with it )--- you should not assign an overly unreasonably high value to a dollar book from a buy - just to sell it at a loss to offset significant gains the rest of the year.

For tax putposes - there is not realistically a "negative" inventory cost. Even if someone paid you to clean out storage - and you received several boxes you decided to sell - the "tax" inventory would still be zero. You would have to account for the payment to perform the clean out in another way... BUT - what divad is describing also is realistically true if you are talking free cash flow...  He has taken in more $$ than spent on the batch of books so he is working in the black with a "negative" spent on what he is selling.

Edited November 9, 2017 by W16227

[FlyingDonut]

You know, I do work for the largest professional services accounting firm in the world. I'll ask somebody who knows what they're talking about and get back to you.

[revat]

13 minutes ago, FlyingDonut said:

You know, I do work for the largest professional services accounting firm in the world. I'll ask somebody who knows what they're talking about and get back to you.

I'm not sure the largest professional services accounting firm in the world often does taxes for people who hope to make $500-$5000 per year selling comics on ebay.  Not that Jay-Z or the Sultan of Brunei might not try to flip some dollar books from time to time.

W16227 mentioned there is some leeway with how you do your cost accounting which I agree with, but I think they (the IRS or other taxing authority) would prefer you are at least moderately consistent and keep records of your methodologies if at all possible, especially when it may come to higher dollar values.  Of course with comics it would be nearly impossible for you OR the IRS to keep track of hundreds or thousands individual books that make it into and out of your collection/inventory, unless you're scanning with a barcode or something.  In the end, they want you to have at least made a good faith effort into paying the taxes you owe based on the records you can provide.  For most people, it probably makes sense to just keep it simple and use your paypal statements and credit card receipts, along with pictures of collections you buy and other receipts if applicable.  Or if you're dealing with higher amounts, obviously consult your accountant.

[FlyingDonut]

6 minutes ago, revat said:

I'm not sure the largest professional services accounting firm in the world often does taxes for people who hope to make $500-$5000 per year selling comics on ebay.  Not that Jay-Z or the Sultan of Brunei might not try to flip some dollar books from time to time.

W16227 mentioned there is some leeway with how you do your cost accounting which I agree with, but I think they (the IRS or other taxing authority) would prefer you are at least moderately consistent and keep records of your methodologies if at all possible, especially when it may come to higher dollar values.  Of course with comics it would be nearly impossible for you OR the IRS to keep track of hundreds or thousands individual books that make it into and out of your collection/inventory, unless you're scanning with a barcode or something.  In the end, they want you to have at least made a good faith effort into paying the taxes you owe based on the records you can provide.  For most people, it probably makes sense to just keep it simple and use your paypal statements and credit card receipts, along with pictures of collections you buy and other receipts if applicable.  Or if you're dealing with higher amounts, obviously consult your accountant.

No, I was going to check on the COGS for books that are already underwater.

My accountant yells at me every year but I have most of those things you've alluded to.

[W16227]

1 hour ago, FlyingDonut said:

No, I was going to check on the COGS for books that are already underwater.

My accountant yells at me every year but I have most of those things you've alluded to.

--- I am my own "accountant" ( not by trade--- but have enough skills to do my own schedule C and taxes) -- I am constantly yelling at myself come tax time.

Consistency and records ( per Revat) - are really the key to being in the safe side of the IRS. The leeway I am describing is how you assign your inventory costs for that final COGS calculation you need at the end of the year. What you described - setting the inventory costs for the quick flip books so you have zero profit until you hit the collection paid amount  - applied consistently should be no issue as long as the cost for the remainder of the books is zero ( so 100% gross profit after you pay your nut).  Other methods - assigning even value to all books ( 1coll mentioned) - or a more graduated scale like I use weighting the costs per book - all will work and get the tax man his due long term ( some may have more tax benefits short term).

For COGS - even if you have the collection  paid off and free cash flow is in your favor ( so you are in the black) --- the general inventory values does not change. Important to differentiate - is that "inventory" value for the IRS - is based on what you paid. FMV - is a different story and is more in line of what you have to deal with for insurance (well - and being able to buy/sell effectively) .

 

Ok - so I need to turn the engineer gene off ... --- this is probably WAY more technical than needed... and honestly divad's comments looked to be more related to the fact that he already has sold enough  of a given collection for it to be paid for - more of a combination of profit and free cash flow than how he does ( or does not)  write up the tax forms....

 

 

 

 

[Aweandlorder]

5 hours ago, divad said:

Why would I bother showing YOU anything?

Why should you bother showing US anything?