New Tax Reporting ($600 Threshold per year) and Consignments 21 21

[Beige]

On 5/13/2022 at 5:25 AM, snitzer said:

I’m seeing more and more cash only and trade deals happening 

And this is the point that some people are missing.

You sell a book for $100 that you paid $50 for at a yard sale.

So pay taxes no the $50 profit (minus expenses) - no problem.

 

The problem comes PROVING you paid $50 in the first place.

 

Ain't nobody going to write you a receipt for $50 at a yard sale - the IRS will just follow your receipt back to them in an audit.

 

 

 

More lunacy - and this is a real scenario - to expect a seller who bought a book from a store in 1980 (Savage She-Hulk #1) and sold it for $900 to pay tax on $897 profit. The guy kept the book for 42 years. He's no flipper - just got lucky.

If he bought it a year ago, heck 3 or 4 even, I can see the point - but 42 years later?

 

Seems like a fine for keeping his book in pristine condition 

[jdandns]

$899.58 profit. That comic was only 40 cents brand new, plus 2 cents tax. (I also bought a Slurpee, as I recall.)

[shadroch]

On 5/12/2022 at 5:23 PM, Beastfeast said:

It's a reasonable enough stance to suggest people pay their fair share of taxes based on their profits.  What's NOT reasonable is changing that threshold from 20k to 600 in a single year. 

I also have 1,099 reasons to assume why @shadroch sells through MCS so much 

If it's anything but they get me the most money for the least amount of work, you are barking up the wrong tree. I've been selling on MCS since they transitioned from Lone Star  to MCS.  Back then, they had zero commissions.

[Beastfeast]

On 5/12/2022 at 9:25 PM, shadroch said:

If it's anything but they get me the most money for the least amount of work, you are barking up the wrong tree. I've been selling on MCS since they transitioned from Lone Star  to MCS.  Back then, they had zero commissions.

I'm just goofing w ya.  I sell my bigger stuff there, too and am 96.69% happy about it.  

[Beige]

On 5/13/2022 at 11:12 AM, jdandns said:

$899.58 profit. That comic was only 40 cents brand new, plus 2 cents tax. (I also bought a Slurpee, as I recall.)

I added $3 for hookers and blow 

[theCapraAegagrus]

On 5/12/2022 at 9:27 PM, Beastfeast said:

I'm just goofing w ya.  I sell my bigger stuff there, too and am 96.69% happy about it.  

Those are rookie numbers.

[lizards2]

On 5/12/2022 at 9:17 PM, Beige said:

I added $3 for hookers and blow 

Those are rookie numbers.

[Buzzetta]

So far this year on FB I’ve seen a lot of stuff (Lego GI Joe Star Wars and Transformers) available that doesn’t always come to market.

Local pickup only.   Take that for what you will.  

[fastballspecial]

Its just my sincere hope it thins the herd. Or levels the playing field
either way you want to look at it.

 

[Buzzetta]

On 5/16/2022 at 5:30 PM, fastballspecial said:

Its just my sincere hope it thins the herd. Or levels the playing field
either way you want to look at it.

 

Yes and no. 

There is something I debated picking up in person as it was also cheaper than anywhere else around.  I ultimately decided I was not going to buy the item.  It had nothing to do with the seller.  If I am going to buy it, it will be meeting up on Long Island to get it and cash in hand.

 

Edited May 17, 2022 by Buzzetta

[jimjum12]

On 5/12/2022 at 10:26 AM, Ryan. said:

When you ignore that 1099 you received because you know you don't owe taxes on the stated amount, the IRS helpfully sends you a bill 2-3 years later for the full taxable amount* of the applicable 1099, thus necessitating you to prove your innocence.

 

*Plus interest!

Like they told Don King, "You have to write it on before you can write it off." GOD BLESS...

-jimbo(a friend of jesus)

[the blob]

I guess one thing I have thought about (because another person here mentioned it to me and I had never really thought of it).. if you are not contributing to an IRA or something for when you are geriatric, the comics profits can take care of that, at least up to $6K or whatever you can put into an IRA pre-tax. Granted, you actually have to put the money into the IRA, but if you are worried about getting taxed on $6000 in profits on sales, and have not been doing this, it is a place to start. Of course, this depends on your income, I think if you make over $125K you can't make the contribution pre-tax to an IRA. For me I am seriously thinking that if I get back into selling it is time to start contributing to my 401K again. That way I could wipe out $20,500 of profits a year. A much better approach than "spend all my comic profits,"

[the blob]

On 5/12/2022 at 8:28 PM, Beige said:

And this is the point that some people are missing.

You sell a book for $100 that you paid $50 for at a yard sale.

So pay taxes no the $50 profit (minus expenses) - no problem.

 

The problem comes PROVING you paid $50 in the first place.

 

Ain't nobody going to write you a receipt for $50 at a yard sale - the IRS will just follow your receipt back to them in an audit.

 

 

 

More lunacy - and this is a real scenario - to expect a seller who bought a book from a store in 1980 (Savage She-Hulk #1) and sold it for $900 to pay tax on $897 profit. The guy kept the book for 42 years. He's no flipper - just got lucky.

If he bought it a year ago, heck 3 or 4 even, I can see the point - but 42 years later?

 

Seems like a fine for keeping his book in pristine condition 

high income tax rates can be a fine for getting the education and training to be a brain surgeon. low cap gains tax rates are a bonus for inheriting and investing money.

[the blob]

On 5/12/2022 at 11:56 AM, Broke as a Joke said:

So every comic book transaction needs a receipt now?  Will hand written receipts be acceptable?  

No wonder everyone seems to be asking for check or money order now.

In theory anything you bought on ebay with paypal can get documented as well as online, but not yardsale scores. of course, those are the ones you are making a killing on. I've gotten receipts from shops for big purchases

 

[the blob]

On 2/2/2022 at 2:18 PM, snitzer said:

If they don't, sounds like it's on the seller...

yeah, my friend sold about $800,000 in inherited art on sothebys and did not get a 1099. but it isn't like the info isn't out there if the IRS wants to audit. I don't think he had the money sent to a cayman bank account and the art was sold in NY, so subject to sales taxes.

 

 

[Bird]

On 5/17/2022 at 7:45 PM, the blob said:

yeah, my friend sold about $800,000 in inherited art on sothebys and did not get a 1099. but it isn't like the info isn't out there if the IRS wants to audit. I don't think he had the money sent to a cayman bank account and the art was sold in NY, so subject to sales taxes.

 

 

WTTBs!

where you been? The Tombs?

[the blob]

On 5/17/2022 at 7:47 PM, Bird said:

WTTBs!

where you been? The Tombs?

family medical, personal medical, but mostly, my day job has been kicking my arse. I can't retire soon enough, but I have 7 more years.

[the blob]

On 5/17/2022 at 7:45 PM, the blob said:

yeah, my friend sold about $800,000 in inherited art on sothebys and did not get a 1099. but it isn't like the info isn't out there if the IRS wants to audit. I don't think he had the money sent to a cayman bank account and the art was sold in NY, so subject to sales taxes.

 

 

although, actually, if he inherited on a stepped up basis he might not really owe any taxes (maybe state and local) as mom's estate was under $11 million and he sold it soon after inheriting. of course, none of the art was actually mentioned in probate. it was literally stuff from an ex husband of his mother's who was an artist that she had sitting around the house and it turns out he became hot after his death and these paintings that were once worth $25 and sat on the wall were worth $200-300K each. go figure.

[the blob]

On 5/17/2022 at 7:47 PM, Bird said:

WTTBs!

where you been? The Tombs?

And I tell you, this topic made it easier to take a break for a year or so. The last thing I wanted to deal with while working 80 hours a week was documenting a huge schedule C to try and figure out my P&L, and when I wasn't selling it made it easier to take a break from here. As it is the IRS kicked our rear ends for 2021. 

 

Edited May 18, 2022 by the blob

[Tnexus]

Sounds like Zelle is going to be pretty popular next year. They are not sending out 1099s even over the $600 threshold.

https://www.zellepay.com/faq/does-zelle-report-how-much-money-i-receive-irs