New IRS reporting for 2021? 8 8

[F For Fake]

1 minute ago, Wolverinex said:

A big question is selling comics that you've held over a year.. are you charged at a long term capital gains tax rate and how does ebay know?  

See, these are the questions I'm going to have to get answered. Do I need to save every receipt for every comic I buy, in case I sell it somewhere down the road? How do I value my "inventory" from year to year? I can't just "stop selling." I sell to buy, I buy to sell. That's how my collection works. But I'm going to have to figure out how to be smart about it. Back in the day I wasn't aware of the $20k tax limits. I had no idea. I blew past them a couple of years, but didn't know about it until the IRS came knocking a few years later. Had to do a LOT of backtracking and work and then still cut a painfully big check. I don't plan to do that again. I'm fine with paying my fair share, but I'm going to have to figure out how to arrive at that "fair share" figure. I'll pay my part, but until the billionaires of the world start paying their fair share, I'm not paying a penny more than I absolutely have to.

Going to be a lot of receipt scanning in my future, it seems.

[F For Fake]

OH, and my other "dumb guy" question: if this takes effect next year, does that mean that in 2022 I'll have to start paying taxes on what I sold this year/2021, or does that mean that starting in 2022 I'm going to have to start keeping those records and pay for that over $600 threshold when I file in 2023?

[The Lions Den]

1 minute ago, F For Fake said:

OH, and my other "dumb guy" question: if this takes effect next year, does that mean that in 2022 I'll have to start paying taxes on what I sold this year/2021, or does that mean that starting in 2022 I'm going to have to start keeping those records and pay for that over $600 threshold when I file in 2023?

[october]

I pay taxes every year on my sales, but I need another 1099 like I need a hole in my head. 

Old school check/money order rule deployed. 

 

[WolverineX]

42 minutes ago, Tnexus said:

It's not just Ebay. Any payment services like Paypal are going to get dinged. Everyone is suddenly going to be keeping meticulous records of their comic purchases to write off. As I believe you have to pay almost 15% in just Social Security/Medicare, this is going to cripple collectables. That's not even including any Federal/State taxes.

Agreed.  This will dampen the hot collectable market.  Who wants to deal with the headaches of another 1099.  Death by a thousand cuts.  

I rather just spend my extra time working out or playing video games. 

[William-James88]

13 minutes ago, Tnexus said:

It's not just Ebay. Any payment services like Paypal are going to get dinged. Everyone is suddenly going to be keeping meticulous records of their comic purchases to write off. As I believe you have to pay almost 15% in just Social Security/Medicare, this is going to cripple collectables. That's not even including any Federal/State taxes.

If a wealth tax is added in the US, wouldn't the worth of one's collection also mean you pay more?

[CatskillMike]

5 hours ago, october said:

I pay taxes every year on my sales, but I need another 1099 like I need a hole in my head. 

Old school check/money order rule deployed. 

 

Isn't there a current thread with comments about using old school methods for payments?  In the probation area? I think it was said "why would anyone want that"? 

Now you know.

 

Edited March 9, 2021 by CatskillMike

[FoggyNelson]

I knew EBay was to good to be true Forever☹️

Edited March 8, 2021 by FoggyNelson

[the blob]

A lot of hobbyists became part time "dealers". If they have to start paying 1/2 of their income in taxes, that's going to put a damper on their business, and I'd imagine many will stop selling altogether. 

For most people, depending on whether they are already maxed out on social security taxes, and depending on state income taxes, the federal marginal rate is going to be 18-24% and that is on profits, not sales, and you can deduct a myriad of things against sales that reduce the taxable profits.

[media_junkie]

2 hours ago, shadroch said:

Anything to evade paying your fair share of taxes. How patriotic. 

When Amazon, Apple, banks, and all the other large corporations pay the same tax rate as I do then I won't complain and look for ways around it.  

[Tnexus]

47 minutes ago, F For Fake said:

OH, and my other "dumb guy" question: if this takes effect next year, does that mean that in 2022 I'll have to start paying taxes on what I sold this year/2021, or does that mean that starting in 2022 I'm going to have to start keeping those records and pay for that over $600 threshold when I file in 2023?

I think it probably starts in 2022 so you'd report in 2023.

[Mephisto]

2 minutes ago, the blob said:

A lot of hobbyists became part time "dealers". If they have to start paying 1/2 of their income in taxes, that's going to put a damper on their business, and I'd imagine many will stop selling altogether. 

For most people, depending on whether they are already maxed out on social security taxes, and depending on state income taxes, the federal marginal rate is going to be 18-24% and that is on profits, not sales, and you can deduct a myriad of things against sales that reduce the taxable profits.

Too much work. I already despise pacing things and going to the post office.

[THE_BEYONDER]

1 minute ago, Tnexus said:

I think it probably starts in 2022 so you'd report in 2023.

The market will most likely implode before then...,

[bc]

Found this blurb:

"The provision would exempt transactions between individuals using online payment platforms like Venmo or PayPal, or when an individual occasionally sells used items and uses such payment networks."

from here:

https://www.rollcall.com/2021/03/05/gig-workers-would-pay-higher-taxes-under-coronavirus-aid-bill/

Have no idea what that means in reality.

-bc

[The Lions Den]

An absolutely crazy notion just popped into my head: Maybe I should keep better track of this stuff from now on...  

[WolverineX]

14 minutes ago, THE_BEYONDER said:

The market will most likely implode before then...,

Agreed.  Honestly, I don't even feel like buying comics anymore.  

[manetteska]

I'm going through this currently, since IL has a lower threshold in effect for this year's taxes (2020 sales). I will let everyone know how painful/less it is. Definitely using an Accountant this go-round and not winging it.

Some good questions in here, such as the time between buying a selling a comic and its impact to taxes. Can I now add in packing supplies against the bottom line? Paper and ink for shipping labels, etc?

Additionally, if I did have a receipt for every comic (going back 10+ years or more), brick and mortar stores who give receipts don't usually specify at that level, it just says "Back Issue: $5". If they don't have to itemize when selling the item, and they are a full-time business, do I have to when I am buying? Perhaps it's a different tier of business versus part-time, or they are allowed to do that; I don't know, and it's all just a pain to think through. Hopefully not a pain (mentally or the wallet) to file.

[ADAMANTIUM]

7 minutes ago, manetteska said:

I'm going through this currently, since IL has a lower threshold in effect for this year's taxes (2020 sales). I will let everyone know how painful/less it is. Definitely using an Accountant this go-round and not winging it.

Some good questions in here, such as the time between buying a selling a comic and its impact to taxes. Can I now add in packing supplies against the bottom line? Paper and ink for shipping labels, etc?

Additionally, if I did have a receipt for every comic (going back 10+ years or more), brick and mortar stores who give receipts don't usually specify at that level, it just says "Back Issue: $5". If they don't have to itemize when selling the item, and they are a full-time business, do I have to when I am buying? Perhaps it's a different tier of business versus part-time, or they are allowed to do that; I don't know, and it's all just a pain to think through. Hopefully not a pain (mentally or the wallet) to file.

try to report back if you can, to see if we can think of follow up or just to be aware of a general thinking on the accountants part  

[THE_BEYONDER]

9 minutes ago, Wolverinex said:

Agreed.  Honestly, I don't even feel like buying comics anymore.  

 

When every new sale is a new record high....it shouldn’t take long to reach the ceiling.  Steady increases year after year are one thing, but when books like ASM 238 jump from 4K to 5K in like a week, and bin fodder  like West Coast 45 become 1k books virtually overnight....

[mattn792]

15 minutes ago, manetteska said:

I'm going through this currently, since IL has a lower threshold in effect for this year's taxes (2020 sales). I will let everyone know how painful/less it is. Definitely using an Accountant this go-round and not winging it.

Some good questions in here, such as the time between buying a selling a comic and its impact to taxes. Can I now add in packing supplies against the bottom line? Paper and ink for shipping labels, etc?

Additionally, if I did have a receipt for every comic (going back 10+ years or more), brick and mortar stores who give receipts don't usually specify at that level, it just says "Back Issue: $5". If they don't have to itemize when selling the item, and they are a full-time business, do I have to when I am buying? Perhaps it's a different tier of business versus part-time, or they are allowed to do that; I don't know, and it's all just a pain to think through. Hopefully not a pain (mentally or the wallet) to file.

IL was also on PayPal's new 1099 list, and it took me like 12 hours to reconcile the figures before turning everything over to my accountant.  And it wasn't the big ticket stuff sold here, because I already track that throughout the year.  It was those miscellaneous $1-$10 items that I sporadically sold on eBay throughout the first part of the year because I figured I'd make a little beer money instead of throwing them out that were a total hassle.  I hope the taxing bodies put the extra $12.75 they'll collect from me this year to good use.