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

[JJ-4]

Inmate #1 - What are you in for?  Murder, arson, rape?

Inmate #2 - No, I didn't pay taxes on the sale of some comic books.

Inmate #1 - So when the IRS caught you (you must be the most unlucky insufficiently_thoughtful_person in existence) why didn't you just pay you taxes and the fine instead of ending up here in prison?

Inmate #2 - Wait, what??? 

[Buzzetta]

On 1/5/2022 at 6:22 PM, shadroch said:

What law did you break today? Yesterday? Tomorrow?  What utter nonsense that you can't live without breaking a law that will land you in jail. 

 

[jimjum12]

On 1/5/2022 at 12:50 PM, october said:

I am significantly more outraged by the corporations that paid no income tax, or in some cases actually got tax rebates, on millions/BILLIONS in profits than I am some random guy not paying $44. I mean, really?

These laws are meant to squeeze every dollar out of low income individuals who don't have the resources or sophistication to fight back. It's MUCH easier to do that than fighting corporate behemoths with legions of lobbyists, lawyers and accountants. Should people pay their fair share? Sure. Is that what this legislation is about? Fairness? Nope.

... and the sad part is when candidates for top offices ( ... both parties) promise to even out these tax disparities, it never happens... They always ratchet down on the working man ... and here we thought we had escaped the tyranny of England. I pay mine, and have for over a decade now, so I try to rationalize that it goes for something good, but when mine ends up at almost 30% and some parasitic clown like Bezos is cruising to the moon  GOD BLESS....

-jimbo(a friend of jesus)

Edited January 10, 2022 by jimjum12

[Domo Arigato]

On 1/5/2022 at 8:22 AM, shadroch said:

For every person who doesn't pay their fair share, there are a dozen honest people who have to pick up their slack.

And I would like to say just one thing to all of those honest people.

THANKS ! ! !

 

[theCapraAegagrus]

Replace "ATF" with "IRS" for some of the shills in here:

[This is Who We Are]

Sadly, prices are going to go up to account for this. My guess next year when most discover they owe taxes on their used, already taxed goods.  The fun in treasure hunting will lose its glow as more “little guys” decide its just not worth the hassle to list things...or the deal they would’ve offered is no longer feasible.  

[shadroch]

On 1/7/2022 at 6:02 AM, This is Who We Are said:

Sadly, prices are going to go up to account for this. My guess next year when most discover they owe taxes on their used, already taxed goods.  The fun in treasure hunting will lose its glow as more “little guys” decide its just not worth the hassle to list things...or the deal they would’ve offered is no longer feasible.  

My God, do you mean people will have to factor their expenses into their prices? That is too radical an idea. How will any business be expected to survive if they have to pay taxes on their profits. That is clearly not what our Founding Fathers intended.

Tax them, not us. Leave the good guys alone.

 

[This is Who We Are]

On 1/7/2022 at 7:46 AM, shadroch said:

How will any business be expected to survive if they have to pay taxes on their profits

 

You clearly missed the crux of my message.  Businesses will do what businesses have done-these laws were in place really to keep them in line, but the many casual hobbyists who sell here and there, who make places like Ebay exciting and worthwhile, will likely hold off on using these forums.  Curious, do you get kickbacks from the IRS for posting comments in this thread?  Asking for a friend

[shadroch]

On 1/7/2022 at 9:04 AM, This is Who We Are said:

You clearly missed the crux of my message.  Businesses will do what businesses have done-these laws were in place really to keep them in line, but the many casual hobbyists who sell here and there, who make places like Ebay exciting and worthwhile, will likely hold off on using these forums.  Curious, do you get kickbacks from the IRS for posting comments in this thread?  Asking for a friend

No, but I do get bonus points for doing the right thing. Hopefully, in the end they will outweigh the occasional horrible act. I have much to atone for.

[KPR Comics]

Just for clarity, income tax does not equal sales tax.

[theCapraAegagrus]

On 1/7/2022 at 11:43 AM, shadroch said:

No, but I do get bonus points for doing the right legal thing.

FTFY.

[namisgr]

As to whether your net profits on comic book sales are considered 'income' or 'collectibles gain' is a subject of confusion to this hobbyist.  And the difference in the tax rate between the two can be substantial.

[rsouxlja7]

On 1/7/2022 at 11:31 AM, namisgr said:

As to whether your net profits on comic book sales are considered 'income' or 'collectibles gain' is a subject of confusion to this hobbyist.  And the difference in the tax rate between the two can be substantial.

You are only selling your personal collection and have held the item over 1 year: collectibles gain

You are only selling your personal collection and have held it less than 1 year: ordinary income

You are buying and selling books regularly for profit, regardless of holding period: ordinary income

[namisgr]

On 1/7/2022 at 12:56 PM, rsouxlja7 said:

You are only selling your personal collection and have held the item over 1 year: collectibles gain

You are only selling your personal collection and have held it less than 1 year: ordinary income

You are buying and selling books regularly for profit, regardless of holding period: ordinary income

Yep.  For retirees no longer collecting salary and in an income bracket lower than the 28% charged for collectibles gains, it encourages flipping books in 12 months or less.

 

Edited January 7, 2022 by namisgr
typo

[jimjum12]

On 1/7/2022 at 12:10 PM, KPR Comics said:

Just for clarity, income tax does not equal sales tax.

That's why I'm in the process of moving all my inventory to consignment... they collect sales tax for 50 different states, which is more than I care to do anymore... talk about a headache. They also ship and cover guarantees.  Oddly enough, out of all the States, my sales to people in my own state is maybe 1 % of my total sales over the last decade... so this used to be negligible. Back issue availability has been strong in my area for decades, which is part of the reason I went to the internet to sell in the first place. As was said before, Internet sales have burgeoned and for our elected officials to continue giving it a free pass is negligent. The writing has been on the wall for a while now. 

    One plus, is that if you get your resale license and become a business, you can put your license on record at the places you buy from and avoid paying sales tax for your purchases.... this can be in the neighborhood of $ 100 saved from every $ 1000. It's a significant advantage. 

A Business License around here costs $ 50 for up to (... IIRC) $ 50,000 in gross sales, then more as sales increase, so it's well worth it. The only caveat is you have to make a profit in 3 out of every 5 years. 

Edited January 7, 2022 by jimjum12

[jcjames]

On 1/2/2022 at 4:43 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.

Oh there is! But that would put tens of thousands of accountants, tax-preparers, advisors and lawyers out of work and unable to pay their lobbyists. 

[zosocane]

But, but ... weren't those 2020 and 2021 federal stimulus checks free money?  

[KPR Comics]

On 1/7/2022 at 2:18 PM, zosocane said:

But, but ... weren't those 2020 and 2021 federal stimulus checks free money?  

yes, and by law, exempt

[snitzer]

The one or two IRS / big government apologists here never cease to amaze me 

[Hamlet]

On 1/7/2022 at 12:01 PM, namisgr said:

Yep.  For retirees no longer collecting salary and in an income bracket lower than the 28% charged for collectibles gains, it encourages flipping books in 12 months or less.

 

That is a somewhat perverse incentive that I hadn't thought about before.