New IRS reporting for 2021? 8 8

[the blob]

1 minute ago, fastballspecial said:

 

So you do know the answer. 

Sure, I can come up with something, of course, but do I have those storage room bills from 14 years ago if I have to prove it?

[fastballspecial]

On 3/9/2021 at 12:22 PM, Tnexus said:

On 3/9/2021 at 8:20 AM, Galen130 said:

Looks like I left feebay just in time.  Been selling here on the boards only, since last July.  It’s not like I’m paying the mortgage with my sales...I wasn’t on eBay either.  It’s more of a hobby, with less hassle and a better group of buyers...IMO. 

You do realize Paypal will also send you one right?

Thank you glad someone finally said it. I read like 3 of these and thought do they not realize they will get one anyway thru Paypal.

Edited April 15, 2021 by fastballspecial

[fastballspecial]

On 3/10/2021 at 4:52 PM, the blob said:

no, it was only required for $20K+ before, but the new proposal lowers the limit. it is a pain because i suspect it will also include all your shipping charges.

Yes thats how I got my first several years ago I think.

 

[the blob]

18 minutes ago, fastballspecial said:

So someone correct me if I am wrong because I didnt read the whole thread yet.
All these sellers are scared because they will finally have to pay taxes like many
of us already do on comics?

How is less competition on ebay going to bother me? I am going to love it. 

On the bad side just found out next year because I sold so much last year I have to make 
quarterly payments. All gladly make them if there is less sellers on ebay. 

Except many of the sellers are folks buying your CGC 9.8 X-Men 244 for $500 thinking it will be a $1000 book (and maybe it will be). Most of my buyers are also sellers.

[fastballspecial]

Just now, the blob said:

Except many of the sellers are folks buying your CGC 9.8 X-Men 244 for $500 thinking it will be a $1000 book (and maybe it will be). Most of my buyers are also sellers.

You really think they think that far ahead?

 

[fastballspecial]

On 3/12/2021 at 2:53 PM, 1Cool said:

I use to do 50 - 60 transactions a month and even that seemed tedious to keep track of each book that came in and how much it sold for.  Now that I've been doing 150 transactions a month for most of the year I just can't imagine finding the time to itemize each purchase via a spreadsheet.  I pretty much only sell on E-Bay now so I get a total in sales for the year and then subtract out the cost of the books that sold.  I estimate the remaining inventory at the end of the year since that goes into the equation.  In general - the tax man sucks.

Thats pretty close to me in general. Its not complicated just takes time.

 

[the blob]

1 minute ago, fastballspecial said:

You really think they think that far ahead?

 

I have no idea. But the way prices are going a lot of casual sellers will be hitting $20K anyway unless they just focus on selling $3 books.

[fastballspecial]

On 3/21/2021 at 2:26 PM, inapicklecomics said:

Let's say I buy a comic for $25k, log it in quickbooks, then sell it on ebay for 26k.  Ebay sends me a 1099 for 25k, but my profit is only 1k.  Am I able to just input 1k on my taxes, or will I face some other steps needed since the discrepancy will be 24k?  I was wondering if my taxes will be flagged/audited if they see that 24k difference. 

Unless I am wrong you just pay tax on the $1k sale minus expenses,fees and such which would make it
zero I think right?

 

 

Edited April 15, 2021 by fastballspecial

[1Cool]

10 hours ago, fastballspecial said:

No its Purchase-Sold=Profit. Now I admit it gets blurry at some point if you have had the books a long, but a year nah.

 

That would result in a negative profit if sold is greater then purchase   Should be Sold - Purchase - fees - deductible expenses = profits 

[fantastic_four]

Yea that $25K example would be a loss that could be deducted from any other profits made during the year.

[MyNameIsLegion]

 

I use to do 50 - 60 transactions a month and even that seemed tedious to keep track of each book that came in and how much it sold for.  Now that I've been doing 150 transactions a month for most of the year I just can't imagine finding the time to itemize each purchase via a spreadsheet.  I pretty much only sell on E-Bay now so I get a total in sales for the year and then subtract out the cost of the books that sold.  I estimate the remaining inventory at the end of the year since that goes into the equation.  In general - the tax man sucks.

@1Cool & @fastballspecial didn't we just spend the last page discussing that you only deduct inventory as an expense when the item sold? How does remaining inventory factor into the equation?  Deducting the expenses of the other comics you bought with the money from sales that didn't sell to offset profits is not correct. You don't realize the gains, or declare the loss until that item sells.  So if you sell $10k, Profit $5K, spend 3K of that profit on more books, your profit is still 5K and that's what you are to be taxed on. Next year if you sell that $3K worth at a loss of $1K, and sell an additional $8K at a profit of $4K, you can deduct that $1K loss, for a next profit of $3K.  that seems like pretty simple math to me but the tracking of what rate it's taxed at if the asset was held less than a year seems like a giant PIA. Is that the part you are referring to in factoring in the equation? You may be doing it all right, but many people are using the straight up purchase of books for their collections as "expenses" to basically fund their hobby as a zero profit pursuit.

[WolverineX]

We get poorer.  The rich get richer. 

https://gadgets.ndtv.com/internet/news/richest-people-in-the-world-net-worth-usd-1-trillion-total-100-billion-each-jeff-bezos-elon-musk-mark-zuckerberg-2412730

[fastballspecial]

1 hour ago, 1Cool said:

12 hours ago, fastballspecial said:

No its Purchase-Sold=Profit. Now I admit it gets blurry at some point if you have had the books a long, but a year nah.

 

That would result in a negative profit if sold is greater then purchase   Should be Sold - Purchase - fees - deductible expenses = profits 

Yes my bad now that I read that again. 

[fantastic_four]

31 minutes ago, Wolverinex said:

We get poorer.  The rich get richer. 

https://gadgets.ndtv.com/internet/news/richest-people-in-the-world-net-worth-usd-1-trillion-total-100-billion-each-jeff-bezos-elon-musk-mark-zuckerberg-2412730

Hopefully this will incent you to create something with the societal impact that Amazon, PayPal, Tesla, SpaceX, or Facebook have had.  

[fastballspecial]

1 hour ago, MyNameIsLegion said:

 

I use to do 50 - 60 transactions a month and even that seemed tedious to keep track of each book that came in and how much it sold for.  Now that I've been doing 150 transactions a month for most of the year I just can't imagine finding the time to itemize each purchase via a spreadsheet.  I pretty much only sell on E-Bay now so I get a total in sales for the year and then subtract out the cost of the books that sold.  I estimate the remaining inventory at the end of the year since that goes into the equation.  In general - the tax man sucks.

@1Cool & @fastballspecial didn't we just spend the last page discussing that you only deduct inventory as an expense when the item sold? How does remaining inventory factor into the equation?  Deducting the expenses of the other comics you bought with the money from sales that didn't sell to offset profits is not correct. You don't realize the gains, or declare the loss until that item sells.  So if you sell $10k, Profit $5K, spend 3K of that profit on more books, your profit is still 5K and that's what you are to be taxed on. Next year if you sell that $3K worth at a loss of $1K, and sell an additional $8K at a profit of $4K, you can deduct that $1K loss, for a next profit of $3K.  that seems like pretty simple math to me but the tracking of what rate it's taxed at if the asset was held less than a year seems like a giant PIA. Is that the part you are referring to in factoring in the equation? You may be doing it all right, but many people are using the straight up purchase of books for their collections as "expenses" to basically fund their hobby as a zero profit pursuit.

I can only speak from my experience. I don't buy huge inventories yet. But if I did I guess I would calculate a per book amount for my purchase for each that I sold. 

I think you really overcomplicating it. Stick with year to year I only want to know what I paid for the book I sold. I am sure there are other ways, but my spreadsheet works for me and I am honest about my profit. If you aren't showing much profit you either suck or you better be sure to prove it. I have yet to factor losses(Well maybe a couple a year now that I think about it) into an my returns at all so I cant really talk much about that. I do deduct all expenses I can and that really helps. 

Maybe 1Cool or others can shed more light on that. Only thing I hate is because I have had such good sales the last two years I have to start paying quarterly taxes now.

 

 

 

Edited April 15, 2021 by fastballspecial

[WolverineX]

11 minutes ago, fantastic_four said:

Hopefully this will incent you to create something with the societal impact that Amazon, PayPal, Tesla, SpaceX, or Facebook have had.  

Pretty sure Facebook is destroying our society with misinformation.

[fantastic_four]

4 minutes ago, Wolverinex said:

Pretty sure Facebook is destroying our society with misinformation.

All technology is two steps forward and one step back.  I could suggest that fire has always been eroding society with its potential to destroy, that the wheel has been destroying society with the number of people killed throughout history, or more presciently that nuclear fission has been destroying society ever since the Manhattan Project, but I don't because I focus on both the two steps forward and the step back simultaneously, not just one or the other.

[1Cool]

18 minutes ago, fastballspecial said:

I can only speak from my experience. I don't buy huge inventories yet. But if I did I guess I would calculate a per book amount for my purchase for each that I sold. 

I think you really overcomplicating it. Stick with year to year I only want to know what I paid for the book I sold. I am sure there are other ways, but my spreadsheet works for me and I am honest about my profit. If you aren't showing much profit you either suck or you better be sure to prove it. I have yet to factor losses(Well maybe a couple a year now that I think about it) into an my returns at all so I cant really talk much about that. I do deduct all expenses I can and that really helps. 

Maybe 1Cool or others can shed more light on that. Only thing I hate is because I have had such good sales the last two years I have to start paying quarterly taxes now.

 

 

 

I'm also being told that I've got to pay quarterly to avoid fees for having to pay so much taxes at the end of the year.  Let's see if I remember to do it  

It is tough to be 100% certain of prices paid for each book when you are buying whole collections with many long boxes of books.  What I currently do is look at the total amount I spent buying books for the year (not an easy task in itself when you buy in so many venues).  If at the end of the year I think 2/3s have sold that year then I claim the 2/3 as my cost of purchasing product (the remaining 1/3 gets carried over to next year).  Things get a tad muddled when books sit for multiple years but I do my best to keep good records and fair estimates.  The total money coming in is a lot easier since E-Bay let's me print out quarterly totals which include how much I paid in fees and shipping charges (which are subtracted from my totals).

I use to take a 200 book collection and divide the total cost by 200 and put each book into a spreadsheet with that cost and then update the spreadsheet with the sold price of each book.  The spreadsheet was quite extensive in my third year of selling and it got to be a part time job keeping it up to date after books sold and came in.  The last few years have been more estimations and less spreadsheets.

[WolverineX]

8 minutes ago, fantastic_four said:

All technology is two steps forward and one step back.  I could suggest that fire has always been eroding society with its potential to destroy, that the wheel has been destroying society with the number of people killed throughout history, or more presciently that nuclear fission has been destroying society ever since the Manhattan Project, but I don't because I focus on both the two steps forward and the step back simultaneously, not just one or the other.

I don't believe that all technology is good.  There are some Pandora boxes that should not be ever opened.  

 I am always shocked  when  people can justify that  8 peoples wealth being equivalent to 25 million Australians.  There's no way they "worked" that much harder to deserve it.  

Visual :https://mkorostoff.github.io/1-pixel-wealth/  

[jimjum12]

12 hours ago, fastballspecial said:

So someone correct me if I am wrong because I didnt read the whole thread yet.
All these sellers are scared because they will finally have to pay taxes like many
of us already do on comics?

How is less competition on ebay going to bother me? I am going to love it. 

On the bad side just found out next year because I sold so much last year I have to make 
quarterly payments. All gladly make them if there is less sellers on ebay. 

I got that this year too ... a $150 penalty for not doing it.... but using the money generates more profit than the penalty costs. This year was my highest tax tab ever ... but I added some of my own money back into the business and it showed up as profit rather than investment ... I will need to talk with my accountant and figure out why that happened. Still, taxes are a part of doing business in the best country in the world. GOD BLESS...

-jimbo(a friend of jesus)