• When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.

Fear the 1099 or Please Pay me F&F
1 1

Started by fastballspecial,

145 posts in this topic

fastballspecial

fastballspecial

Posted
Posted (edited)

Several conversations at my local shop and from a few dealers lately have centered on the 1099. 
I know several are panicked on FB and IG now as it looks like in the very near future everyone 
is going to get one or at least significantly more then the normal 20k/200 transaction limit from the 
past. 

I have noticed more sellers asking for F&F lately and I think this is the case as well. As a buyer I never
send F&F and I would recommend to many of you not to either because it nullifies your buyer protection
under paypal if you didn't know it. People fall prey to this as a scam a lot as well. Its also an attempt to get
out of paying taxes lets be honest about it at least.

Now the bright side of all of this that have been doing 1099 for while. Our 
competition is going to get smaller which means more customers. I think next year selling is going to be
great because of this. 

Agree/Disagree?

 

 

 

Edited by fastballspecial
Link to comment
Share on other sites
  • Popular Post
kav

kav

Posted
  • Popular Post
Posted

I have had incredible success predicting books that will pop like FF annual 6, thor 134, FF 19, New gods 1, fornever people 1 etc and others and stocking up on them for a nest egg.  Now with the new tax situation it makes me want to burn all my books.  I can see me being stuck selling to LCS like the old days and getting shanked.  I do not like this sam I am.

Link to comment
Share on other sites
TheOldCollector

TheOldCollector

Posted
Posted

With the market as crazy as it is I think you'll have more people selling local for cash. At least the ones worried about the 1099. In this market you could be selling books in the middle of a hurricane and there will still be buyers :) They won't have that hard of a time selling locally for cash even if they sell it for a little less then what it goes for on E-Bay they are still making more money than they would if they sold it online. No Ebay fees, shipping or Paypal fees. So unless they live in an area not close to a mid size or major city they aren't going to stop they are just going to change their tactics. To be honest as a collector I wish more people were already doing this. There are some that have been doing this already. You'll see them on Craigslist with links to their E-Bay page offering a 10%-20% discount if bought locally. Of course I am talking about books priced below say 3k. If they were selling books of higher value already then they should already be used to 1099's.

Link to comment
Share on other sites
  • Popular Post
blazingbob

blazingbob

Posted
  • Popular Post
Posted (edited)

The logic of not wanting to pay anything continues to amaze me over the years.  Don't sell stocks because you will owe tax.  How about you just made money?  If you don't like the tax then complain to your congressman. 

Don't sell comics because you "might" have to pay tax.  Again,  if you are making money it is the cost of doing "business" which is what the buying and selling of comics is. 

I have to pay to list my comics on consignment websites?  Why?  What do they do?  They just list it.  Doesn't matter they are the ones that worked for the customers that are buying those books.  They handle the risks yet don't deserve to get paid for that?  

Pay me friends and family because that mean corporation Paypal is making money off me.  They don't deserve the money.  Oh wait,  the seller sent me an empty box and I have no protection.  Paypal sucks. 

When did running a business become a charity?   

 

Edited by blazingbob
Link to comment
Share on other sites
  • Popular Post
Randall Ries

Randall Ries

Posted
  • Popular Post
Posted
8 minutes ago, blazingbob said:

The logic of not wanting to pay anything continues to amaze me over the years.  Don't sell stocks because you will owe tax.  How about you just made money?  If you don't like the tax then complain to your congressman. 

Don't sell comics because you "might" have to pay tax.  Again,  if you are making money it is the cost of doing "business" which is what the buying and selling of comics is. 

Pay me friends and family because that mean corporation Paypal is making money off me.  They don't deserve the money.  Oh wait,  the seller sent me an empty box and I have no protection.  Paypal sucks. 

When did running a business become a charity?   

 

Right there with you. Basically, this thread is the whining of tax evaders. It isn't enough to ask robber prices for common books because they are 9.6 or 9.8 but now they balk at taxes. Why not consider you are ripping people off by overcharging for common books and the overcharge percentage is your way of making the seller pay your taxes? It isn't the "market". It's sellers setting ridiculous prices creating an inflated market. It's sellers having to pay high prices for grading so the books look more attractive to potential buyers.

That being said? Pay your taxes. Your other options are tell your congressman you don't want to. (THEY and their uber-wealthy friends don't want to pay either, so that means YOU are going to) Another option is tell CGC you don't want to pay so much for the grading process. Huh. Think Blackstone is going to cut you all any slack? SOMEONE is going to have to pay back that half billion and it isn't going to be them. Savvy? They invested in CGC. Which means they are going to wring it out of you guys.

The other thing a seller can do is set themselves up as an LLC and a small business. Then, you can take some small business write offs. You could write off your mortgage interest and all that.

Personally, I'm a proponent of going back to the good old days of trading comics. This whole grading/market/Wall Street/Blue Chip thing has gotten sickening. Comics and collectibles should have remained the worlds best kept secret.

Come back at me about "Yah! But the books are worth a lot now and the market is hot and blahblahblah...." Well? You are making money then. You are making money on books that are simply not worth that much. So. Who's jamming who? Everyone wanted comics and collectibles to be legitimate and recognized as valuable. The day has dawned! So, pay your taxes like the rest of us business guys have to.

Link to comment
Share on other sites
Xenosmilus

Xenosmilus

Posted
Posted

I think people who say people are whining about not wanting to pay taxes on profits made on buying and selling comic's is over simplified.  I can't speak for us all but I started collecting again as a hobby and not as an investment.  If I am casually buying and selling books (as a hobby) it's a major nuisance trying to figure out what I paid for a book. I think most Collectors are not keeping records of purchase price.  I have a ball park figure in my head but that's about it.  My biggest complaint about having to pay taxes on comic sales (as a collector) is on my original collection of books I bought as a CHILD!!! I find it insane that if I sell my ASM 300 that I bought for $1.00 that I have to pay 28% taxes on the projected profit of $2999 (I have a 9.6 SS and value it around 3K for simplicity here).  I've had that in storage for years and carried that around with me for 32-33 years. I guess I can write off from the profit the storage and transportation of the book for all those years?xD

Buying and selling stocks is not a fair comparison to comic sales for a collector.  Stocks's are highly regulated and you know what you are getting into when you start trading stocks.  Plus it's all automated, if want to go that route like I do.  I just import my 1099 from TD Ameritrade into Turbo tax and I'm all done.

A better example is what I am doing now.  I'm selling a big chunk of my collection through an auction house to help with a down payment of a house.  For tax purposes I will be guesstimating the purchase price, adding 9% sales tax and adding $15 for shipping per book to get a price of what I paid for each book.  It's the best I can do.  The one thing I am unsure of is as of now is, you don't had have to declare anything from an auction house unless you made 20K profit or 20K of sales? Or am I totally wrong on both counts?

 

 

Link to comment
Share on other sites
october

october

Posted
Posted (edited)
17 minutes ago, TheOldCollector said:

40% Seriously? How did 40% of your sells earnings go to taxes?

The 2020 top tax bracket was 37%. If you were already in that bracket through other income, and your comic income was extra, you owed 37% on the profits...unless you were set up as a business.

Edited by october
Link to comment
Share on other sites
Math Teacher

Math Teacher

Posted
Posted (edited)

I'm not adverse to paying taxes. My biggest concern is how to prove the price that I paid for a book to the IRS.

The first time I ever spent a substantial amount of money on a book was in May, 1980. I had just graduated from college, and I used the graduation money I received to purchase a copy of Amazing Spider-Man #1 for $300. I paid the seller $300 in cash, face to face, so I didn't get a receipt. But even if I had gotten a receipt, I would never had thought that I would need to hold onto that receipt for 40+ years. Honestly, can anyone of you say that you have kept a receipt from 1980?

I have done a better job of keeping track of the prices I have paid recently, as I have been using a feature in GPAnalysis that lets you record the certification number of a book and the amount you paid for the book.

I can't speak for anyone else, but the one thing that bothers me the most about the IRS is the fact that you are considered guilty until you can prove your innocence. A nutjob can go into a business or school and shoot a dozen people, but s/he is considered innocent until proven guilty.

Edited by Math Teacher
Link to comment
Share on other sites
jharvey

jharvey

Posted
Posted
1 minute ago, Math Teacher said:

According to investopedia.com, the tax rate for selling collectibles held for more than a year is 28%.

https://www.investopedia.com/articles/personal-finance/061715/how-are-collectibles-taxed.asp

Actually, it is only 28% if you are already in a tax bracket that is higher than 28%. If you are in a tax bracket lower than 28%, then the tax rate for your collectible sale will be in your lower tax bracket rate (for example, 15% rate). So you pay the lower of 28% or your marginal ordinary income tax rate.

Link to comment
Share on other sites
csaag

csaag

Posted
Posted
23 minutes ago, Math Teacher said:

I'm not adverse to paying taxes. My biggest concern is how to prove the price that I paid for a book to the IRS.

Not only should the buyer hold onto any receipts, cancelled check etc, but the seller should remember that if the IRS audits a buyer and he shows them proof of purchase, they may decide to check if the seller declared the proceeds,(receipts could  show the sellers name, email addr etc)

Link to comment
Share on other sites
  • Popular Post
Xenosmilus

Xenosmilus

Posted
  • Popular Post
Posted (edited)

There are  a lot of valid points and things to consider people have brought up here.  It sort of proves my point though.  For most, this is suppose to be a fun hobby. When it starts to get overly complicated it's not fun anymore and makes me start thinking of not wanting to collect.  I don't want a hobby to become work.

Edited by Xenosmilus
Link to comment
Share on other sites
blazingbob

blazingbob

Posted
Posted
35 minutes ago, Math Teacher said:

According to investopedia.com, the tax rate for selling collectibles held for more than a year is 28%.

https://www.investopedia.com/articles/personal-finance/061715/how-are-collectibles-taxed.asp

I would check with my accountant since I don't want to have to be a expert in taxes.  If you want confusing start reading IRS publications.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
1 1
Go to topic listing