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

[FlyingDonut]

On 1/2/2022 at 4:48 PM, snitzer said:

1099s don’t make this distinction…they’ll be sent regardless. Up to the individual to figure out the angles.

You're not taxed on your 1099. You're taxed on your income. If you're reporting your income from the 1099, you really need to contact a tax professional.

[FlyingDonut]

On 1/2/2022 at 6:43 PM, WoWitHurts said:

This is true but it is up to the person filing to keep detailed records. I imagine you will file the 1099-k as misc. income with a 1099-k offset. I hate that they complicate everything. There has to be an better/easier way.

I file on a Schedule C off of my regular 1040. Contact your tax guy. It is relatively easy.

[Ryan.]

On 1/2/2022 at 8:58 PM, Tony S said:

I do not believe anyone has answered the OP's question. 

Payment PROCESSORS are going to now be required to issue a 1099 if sales  totals $600 or more.  The old threshold was 200 transactions AND $20,000. Payment processors include PayPal, credit card processors (say Squareup) and Venmo 

Local comic shops that take consignments and  auction houses that sell comics from consigners are not "payment processors". The new standard does not REQUIRE that they send 1099's.  They may or may not.  One would have to ask if they send 1099's and if they do if there is a threshold.

Pfft I said that. 

[Bird]

On 1/2/2022 at 11:47 PM, FlyingDonut said:

I file on a Schedule C off of my regular 1040. Contact your tax guy. It is relatively easy.

This is what I do, but honestly I complicate it in my head endlessly.

I got the dreaded "you owe tree fiddy thousand" tax bill a few years ago after a relatively good year on ebay and have been paying taxes ever since.

I think that box of drek with a grail is quite smart, thanks. All grails now being sold as part of a lot!

Edited January 3, 2022 by Bird

[manetteska]

On 1/2/2022 at 7:06 PM, CAHokie said:

I rarely sell but this hassle makes me want to even less. I don't keep records of what I pay for things because its for collecting purposes, not for profit. 
 

I bet the way people avoid paying taxes is going to be interesting. Selling a grail, someone is going to throw in a short box of drek to claim a loss.

If one is going to lie about profit/loss, why add the short box at all? Just say the grail itself was a loss.

[Bird]

On 1/3/2022 at 11:30 AM, manetteska said:

If one is going to lie about profit/loss, why add the short box at all? Just say the grail itself was a loss.

I have only considered this for a few minutes, I wouldn't sell a grail and add a box and then adjust the math. But why not sell each grail with a box of drek as a lot? That seems kosher to me, but then again I don't know what I am doing anyway! I don't want to lie but I do not mind selling in a way to minimize tax.

When I said earlier I complicate it endlessly in my mind, that is due to two ways in my mind to view it - money in and money out each year along with value of goods in collection or each item itemized. Now what the actual laws are, I have no idea and that is the problem!

Edited January 3, 2022 by Bird

[Ryan.]

On 1/3/2022 at 8:35 AM, Bird said:

I got the dreaded "you owe tree fiddy thousand" tax bill a few years ago after a relatively good year on ebay and have been paying taxes ever since.

 

Me too!!!!!!!!11111!!!!!!!! 

[namisgr]

On 1/3/2022 at 12:04 PM, Bird said:

I have only considered this for a few minutes, I wouldn't sell a grail and add a box and then adjust the math. But why not sell each grail with a box of drek as a lot? That seems kosher to me, but then again I don't know what I am doing anyway! I don't want to lie but I do not mind selling in a way to minimize tax.

It doesn't.  Your collectibles gain is the difference between what you paid for the books you sold (including insurance and other associated costs) and what you netted selling them for (gross sale price less selling associated costs).  Offsetting a massive grail-associated profit with a relatively tiny loss on some drek is barely going to scratch the surface.

Making a massive profit on one's comic book sales and having a resulting tax liability is a first world problem.

Edited January 3, 2022 by namisgr

[musicmeta]

On 1/3/2022 at 11:16 AM, namisgr said:

It doesn't.  Your collectibles gain is the difference between what you paid for the books you sold (including insurance and other associated costs) and what you netted selling them for (gross sale price less selling associated costs).  Offsetting a massive grail-associated profit with a relatively tiny loss on some drek is barely going to scratch the surface.

ok, then it's two long boxes of drek. LOL.

[namisgr]

On 1/3/2022 at 12:20 PM, musicmeta said:

ok, then it's two long boxes of drek. LOL.

I knew the cover prices of moderns were on the rise, but not that much!  

[musicmeta]

Seriously,  I've always reported what I sold minus costs every year since I can remember. 

[Ryan.]

On 1/3/2022 at 12:22 PM, musicmeta said:

Seriously,  I've always reported what I sold minus costs every year since I can remember. 

Let us know where to ship the halo! 

[Bird]

On 1/3/2022 at 2:47 PM, Ryan. said:

Let us know where to ship the halo! 

I think he was giving us a his method as a factual "how to" matter and not a moral one.

[aardvark88]

On 1/2/2022 at 5:30 PM, Robot Man said:

I see a lot less internet sales starting now. Folks are going to be doing a lot more live show sales as soon as we are able to safely do so. 

Not sure about less internet comic sales. Facebook (FB) group auctions in USA or Canada seem to garner good results $$. Seller can set the minimum bid so as not to lose their shirt.

[CAHokie]

To be clear, I was joking about the Drek box.  

However, if they want people to pay taxes on every comic they make a profit on, wouldn’t it only be fair to take a deduction on every one that is sold for a loss? It shouldn’t just be a one way street. Thats a hypothetical question, not a statement.  

[mrwoogieman]

On 1/3/2022 at 3:17 PM, CAHokie said:

To be clear, I was joking about the Drek box.  

However, if they want people to pay taxes on every comic they make a profit on, wouldn’t it only be fair to take a deduction on every one that is sold for a loss? It shouldn’t just be a one way street. Thats a hypothetical question, not a statement.  

You don't pay taxes on things you sell at a loss. Example, you buy an omnibus for $50 and sell it for $25. You don't owe taxes on that $25. Of course, if you're audited you'll probably have to prove to the IRS that you bought it for $50 and not $5 at a flea market.

 

[CAHokie]

On 1/3/2022 at 12:38 PM, mrwoogieman said:

You don't pay taxes on things you sell at a loss. Example, you buy an omnibus for $50 and sell it for $25. You don't owe taxes on that $25. Of course, if you're audited you'll probably have to prove to the IRS that you bought it for $50 and not $5 at a flea market.

 

Of course you don’t pay taxes on what you sell for a loss. But if I buy two $50 books and sell one for $75 and one for $25, that would be a wash.  Not, I pay taxes on the $25 and the loss is just too bad. Of course that is a problem more for dealers or high volume sellers to record and figure out.

[Beige]

What happens with books you have owned for decades then?

How do you show you bought a book back in the , say 1980's from a store and now you are selling and its worth say $1000?

Do you still pay tax on the $999.70 profit, or is there a time limit?

Capital gains tax in Australia for example, on a house is void after 12 months of occupation.

Seems very odd to be 'tax-exempt' on a potential profit of hundreds of thousands if you buy the 'right' house - but get clobbered with tax on a comic you bought 40 yrs ago.

Genuine question as I'm sure it will hit Australia in the next 2-3 years.

 

Thanks 

[FlyingDonut]

On 1/3/2022 at 3:17 PM, CAHokie said:

To be clear, I was joking about the Drek box.  

However, if they want people to pay taxes on every comic they make a profit on, wouldn’t it only be fair to take a deduction on every one that is sold for a loss? It shouldn’t just be a one way street. Thats a hypothetical question, not a statement.  

It should be a statement, because yes, that's accurate.

[FlyingDonut]

On 1/3/2022 at 3:45 PM, CAHokie said:

Of course you don’t pay taxes on what you sell for a loss. But if I buy two $50 books and sell one for $75 and one for $25, that would be a wash.  Not, I pay taxes on the $25 and the loss is just too bad. Of course that is a problem more for dealers or high volume sellers to record and figure out.

You don't pay taxes on single transactions, you pay taxes on your aggregate income. If you buy two $50 books and sell them for $100 total, you have not made on any income.

I cannot state this enough - everyone worrying about this is overthinking it. Call your tax guy.