Selling and taxes 0

[spidrvacc]

2 hours ago, rsouxlja7 said:

Make a spreadsheet of each book and do your best to put down what you paid for each. If you don't remember then go by cover price. And if you're going to do all of this work you may as well grade them and sell them individually while you're at it. 

I actually have it in a spreadsheet, what i believe i paid.  I just dont have the paper trail for most. Most purchases over 5 years ago. And as an accountant i know how important the working papers and paper trail are.  

[rsouxlja7]

That will probably be sufficient. I wouldn't worry about it. If a lot of those purchases were on ebay you can probably find support for them in your email. 

[wilbil]

then your forensics is golden as proof of cost.

[shadroch]

Let's suppose you have bought ten books a week off your local comic shop.  Thats roughly $30 a week for the past two years or 100 weeks x $30, or $3,000.  Sold in bulk, you may get $500 for them.  You now have $2500 in losses to use against your other sales. 

Or you can donate them , and have $3,000 in tax deductions against your sales. If you bought SA books ten years ago but don't have a paper trail, you can use a ten year old Overstreet to estimate what the books were selling for at the time. 

Tax agencies aren't trying to get blood from a stone. They expect you to make good faith efforts and as long as you are on the up and up and don't try to  screw them entirely,  they are usually pretty reasonable.  Tax codes can be very user friendly, if you learn how to play the game.

For the last ten years or so, I write the price I paid, and the source I got it from on the backing board of every comic.  Takes a few minutes but hopefully will be worth it down the road. 

It lets me know exactly what I need to sell the book at to break even, and how much room I have to negotiate.

 

 

 

Edited December 3, 2020 by shadroch

[spidrvacc]

Ebay lol. Some of these were purchases by check i mailed  in that newspaper comic buyers guide and at now closed stores. Probably 10% from eBay.  But i do know what i paid for the most part , have alot written down,ive had a spreadsheet for years. Just again no actual documention. 

 

And to all who posted i appreciate the help

[buttock]

1) dealers don't have to report anything.  I sold well into 6 figures through heritage and they reported nothing to the IRS and clearly told me they didn't have to. 

2) pull any receipts you have.  Dig through credit card statements, emails, whatever you can find.  Any expense associated with the acquisition of the books (USPS receipts, hotels, flights, dinners) can be deducted.  

3) You only pay on what you make as profit, so it's worth the time to figure out what you paid.  

[wilbil]

i don't think heritage is a dealer, in the irs sense. in fact, i am sure they are not. 

dealers, yes, it is reportable. the best example i can use is rcnh. cross the threshold within the time period, it is reported. deposit funds adding up to the amount stated within the time period, bank has to file. it also need not be 10k. it can be 8k, 9.3k, etc. it also has to be disclosed by the individual.

the individual does have to report the sales receipts, but we all know that.

[shadroch]

3 hours ago, spidrvacc said:

Ebay lol. Some of these were purchases by check i mailed  in that newspaper comic buyers guide and at now closed stores. Probably 10% from eBay.  But i do know what i paid for the most part , have alot written down,ive had a spreadsheet for years. Just again no actual documention.

 

And to all who posted i appreciate the help

Don't get hung up on the documentation.  Individuals are held to lower standards than companies with access to accountants. 

[spidrvacc]

Thank you Shadrock and best of luck.