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taxes

Started by jokersrevenge,

42 posts in this topic

DKB

DKB

Posted
Posted

Not me.

 

I wonder, if I were to buy a book for $1000 one week, and sell it for $500 the next, are there any tax implications?

 

Extrapolated out, if I spend 10 years collecting modern dreck, and sold it all for a significant loss v. the cover price on eBay, are there tax implications? I mean, there are obvious implications if I make money...

 

I fill out the EZ, no house, no student loans, just a car, anything gets too complex I just shut down the brain and mumble "Thank God for the EZ" to myself.

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mrwoogieman

mrwoogieman

Posted
Posted

You only have to pay taxes on the profit, if any, made from the sale of your book.

 

 

 

 

 

To me, figuring out your cost for the book would include more than just the purchase price paid for the book, it would also include the costs associated with the sale of the book, including listing fees, final value fees and any associated transactional fees such as Paypal fees. I would also include in that formula the cost for up-keep of the book while it was in your possession, if any, and any expenses associated with shipping the book out that were not covered by the buyer (mailing costs such as supplies, additional postage, a nominal fee for wrapping the package, gas and parking for the post office trip, a nominal fee for the time spent at the post office as well).

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Hobgoblin

Hobgoblin

Posted
Posted
You only have to pay taxes on the profit, if any, made from the sale of your book.

 

 

 

 

 

To me, figuring out your cost for the book would include more than just the purchase price paid for the book, it would also include the costs associated with the sale of the book, including listing fees, final value fees and any associated transactional fees such as Paypal fees. I would also include in that formula the cost for up-keep of the book while it was in your possession, if any, and any expenses associated with shipping the book out that were not covered by the buyer (mailing costs such as supplies, additional postage, a nominal fee for wrapping the package, gas and parking for the post office trip, a nominal fee for the time spent at the post office as well).

 

So if I bought a raw book for $25, had it CGC'd and received a great grade for it, sold it on eBay for, lets say $150 for a nice round number, I'd have to pay taxes next year on the extra $125? frown.gif

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mrwoogieman

mrwoogieman

Posted
Posted

A formula to figure pure profit from the sale of a book might look like this:

 

price of book sold

minus

(price paid for book + fees + cost of upkeep + misc. costs and fees associated with the transaction) =

profit for that book

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mrwoogieman

mrwoogieman

Posted
Posted
You only have to pay taxes on the profit, if any, made from the sale of your book.

 

 

 

 

 

To me, figuring out your cost for the book would include more than just the purchase price paid for the book, it would also include the costs associated with the sale of the book, including listing fees, final value fees and any associated transactional fees such as Paypal fees. I would also include in that formula the cost for up-keep of the book while it was in your possession, if any, and any expenses associated with shipping the book out that were not covered by the buyer (mailing costs such as supplies, additional postage, a nominal fee for wrapping the package, gas and parking for the post office trip, a nominal fee for the time spent at the post office as well).

 

So if I bought a raw book for $25, had it CGC'd and received a great grade for it, sold it on eBay for, lets say $150 for a nice round number, I'd have to pay taxes next year on the extra $125? frown.gif

 

No, the CGC fees, mailing and insurance both ways, the ebay fees, etc., all would come off the raw 'profit' figure to give you the true 'profit' minus expenses. And then yes, that's income. tonofbricks.gif

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Hobgoblin

Hobgoblin

Posted
Posted
You only have to pay taxes on the profit, if any, made from the sale of your book.

 

 

 

 

 

To me, figuring out your cost for the book would include more than just the purchase price paid for the book, it would also include the costs associated with the sale of the book, including listing fees, final value fees and any associated transactional fees such as Paypal fees. I would also include in that formula the cost for up-keep of the book while it was in your possession, if any, and any expenses associated with shipping the book out that were not covered by the buyer (mailing costs such as supplies, additional postage, a nominal fee for wrapping the package, gas and parking for the post office trip, a nominal fee for the time spent at the post office as well).

 

So if I bought a raw book for $25, had it CGC'd and received a great grade for it, sold it on eBay for, lets say $150 for a nice round number, I'd have to pay taxes next year on the extra $125? frown.gif

 

No, the CGC fees, mailing and insurance both ways, the ebay fees, etc., all would come off the raw 'profit' figure to give you the true 'profit' minus expenses. And then yes, that's income. tonofbricks.gif

 

 

Basically it'd have to pull in quite a few hundred. i don't have any books that would sell for that. 27_laughing.gif

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FlyingDonut

FlyingDonut

Posted
Posted
This should be interesting, so who here pays taxes on those books...... wink.gif

 

popcorn.gif

 

Who here has gone to the State Board of Equalization an gotten a resale lic.?

 

I have been told many times by my tax advisor that i do NOT need a resale license as I do not exhibit. I file everything on my Schedule A.

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uclapeterg

uclapeterg

Posted
Posted
If you set up yourself a Sched. C business you can count any losses off of your personal taxes.

 

But the IRS likes to see profit every 3 out of 5 years. And negative income on a Schedule C is one of the biggest red flags you can have when the IRS determines who to audit.

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Silver Surfer

Silver Surfer

Posted
Posted
If you sell a high dollar book on ebay, (as an individual not a store or frequent seller) do you have to pay income tax on it?

 

Only if you sold it for more than you bought it for.

 

Isn't there a personal property limit/amount that is tax free and then any profits beyond that are subject to taxes? I believe there is such a thing in Canada, probably the first $2,500?

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the blob

the blob

Posted
Posted

"I have been told many times by my tax advisor that i do NOT need a resale license as I do not exhibit. I file everything on my Schedule A. "

 

depending on the state, if you read the rules it seems like many of us should have a salex tax license if we ever make an in-state sale -- this is a separate issue from income tax.

 

this is most likely a state by state analysis.

 

a real pain.

 

compounding and confusing things is that the FAQs for NY state income tax, for example, say periodicals are not subject to sales tax....

 

but, I've heard some people say this only applies to new periodicals, and if an old one is being sold as a collectible then sales tax should be charged

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qualitycomix

qualitycomix

Posted
Posted
If you sell a high dollar book on ebay, (as an individual not a store or frequent seller) do you have to pay income tax on it?

 

Officially, or realistically?

 

Since you know ebay keeps sales data on all their sellers, it won't be long before the IRS gets a listing of the big powersellers yearly sales on ebay and compares it with their tax returns. Probably won't affect the little fish in the pond ie one or two sales, but if you sell regularly on ebay, take care.

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Darthdiesel

Darthdiesel

Posted
Posted
Not me.

 

I wonder, if I were to buy a book for $1000 one week, and sell it for $500 the next, are there any tax implications?

 

Extrapolated out, if I spend 10 years collecting modern dreck, and sold it all for a significant loss v. the cover price on eBay, are there tax implications? I mean, there are obvious implications if I make money...

 

I fill out the EZ, no house, no student loans, just a car, anything gets too complex I just shut down the brain and mumble "Thank God for the EZ" to myself.

 

I was the same way until you get married, own a home and have kids...learn to use that Schedule A/C to your advantage smile.gif

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