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

[shadroch]

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. 

If your business fails to make it and goes belly up, there is nothing to prevent you from opening a new business. And in three years when that one fails, you can open another one. In America, one can get rich by operating a failing business. Why should only successful businessmen enjoy the good life?

Edited January 7, 2022 by shadroch

[jimjum12]

On 1/7/2022 at 2:37 PM, shadroch said:

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. 

If your business fails to make it and goes belly up, there is nothing to prevent you from opening a new business. And in three years when that one fails, you can open another one. In America, one can get rich by operating a failing business. Why should only successful businessmen enjoy the good life?

One year was very unimpressive with losses.... combined with the witholdings from my full time gig, I ended up with the biggest refund I ever had. My pal Dave, an LCS owner, kept pushing me to make the plunge... I wish I had done it years ago. 

I mean, every time you blow a tire in a pothole, that's one deadbeat who didn't pay taxes. GOD BLESS....

-jimbo(a friend of jesus)

[zosocane]

On 1/7/2022 at 2:24 PM, KPR Comics said:

yes, and by law, exempt

You are correct that it's exempt, but that's not what I'm getting at.  My point is that the fisc has to be replenished one way or another.

On 1/7/2022 at 2:28 PM, snitzer said:

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

Not sure if you're referring to me, but if you are, I'm simply stating that nothing free is ever truly free.

[zosocane]

On 1/4/2022 at 9:42 PM, FlyingDonut said:

Deposits over $10,000 have to be reported per the PATRIOT Act. That hasn't changed since 2001.

Actually, under the Currency and Foreign Transactions Report Act (aka the Bank Secrecy Act).  The $10K reporting threshold has been in place since 1970.

[Martin4]

On 1/5/2022 at 7:02 AM, Shrevvy said:

There was a proposal (in the infrastructure bill maybe?) that would have required banks to report all deposits and withdrawals of $600 or more. It is a crazy proposal that has not been passed. Couple this with the $600 1099s and it seems like a concerted effort to track your money in every way possible. 

In the infrastructure bill the current 1099 reporting thresholds were passed. 

The Build Back Better plan takes things a giant step further. IRS will have the right  monitor every citizens bank account for any transaction over 600. Basically they can look at everything you do. If Charlie IRS agent chooses you or your account is flagged , and they decide to look further you may have some explaining to do. Currently you are flagged if you have a bank transaction over 9,999. Under the proposed Build Back Better- you will be flagged at 600.

[KPR Comics]

On 1/2/2022 at 4:46 PM, fastballspecial said:

Several surprise 1099s will be going out this year. Comic sales were massive last year mine doubled.

 

Pretty sure it applies to 2022 tax year, so 1099s under this new rule would go out in 2023.

[jimjum12]

On 1/7/2022 at 5:17 PM, KPR Comics said:

Pretty sure it applies to 2022 tax year, so 1099s under this new rule would go out in 2023.

That was my understanding too.... but then, they're from the Government and they're here to help  GOD BLESS ...

-jimbo(a friend of jesus)

[jharvey]

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.

 

Except for the fact that collectibles aren't taxed at a straight 28%. They are taxed at the LOWER of your ordinary income tax rate, or 28%.

[snitzer]

On 1/7/2022 at 5:17 PM, KPR Comics said:

Pretty sure it applies to 2022 tax year, so 1099s under this new rule would go out in 2023.

Some this year…plenty of god-awful state governments implemented this nonsense in years prior.

[PopKulture]

On 1/7/2022 at 5:26 PM, snitzer said:

Some this year…plenty of god-awful state governments implemented this nonsense in years prior.

Like my own, beloved Illinois.

[fastballspecial]

On 1/7/2022 at 4:17 PM, KPR Comics said:

On 1/2/2022 at 3:46 PM, fastballspecial said:

Several surprise 1099s will be going out this year. Comic sales were massive last year mine doubled.

 

Pretty sure it applies to 2022 tax year, so 1099s under this new rule would go out in 2023.

Won't matter. What I meant was many people have well exceeded the 20K rule and don't know it 
yet because they didn't track their sales. They will get one this year and panic like every year only
many more will see them this year. 

This year I am looking forward to less competition as some panic and decide to stop selling .
Local shops should like this too as they will have less competition should be a great year for long time 
Sellers.

 

 

Edited January 8, 2022 by fastballspecial

[batman_fan]

This change offers some interesting business opportunities as well as some interesting loophole opportunities.  For myself, it basically means I am done selling stuff until I retire and can play the income game to minimize my tax liability.  Selling anything will be taxed at ~41% and just isn't worth it.  Better to wait when I can have my income much lower so my tax rate is more in the 12% to 16% range.

[snitzer]

On 1/7/2022 at 8:55 PM, fastballspecial said:

Won't matter. What I meant was many people have well exceeded the 20K rule and don't know it 
yet because they didn't track their sales. They will get one this year and panic like every year only
many more will see them this year. 

This year I am looking forward to less competition as some panic and decide to stop selling .
Local shops should like this too as they will have less competition should be a great year for long time 
Sellers.

 

 

A lot of individual sellers use the funds from small sales to shop from dealers. Good chance that slows down along with people just dropping out of the hobby. Trades / cash will likely be the new normal in other situations.

Edited January 8, 2022 by snitzer

[buttock]

On 1/7/2022 at 8:20 PM, batman_fan said:

This change offers some interesting business opportunities as well as some interesting loophole opportunities.  For myself, it basically means I am done selling stuff until I retire and can play the income game to minimize my tax liability.  Selling anything will be taxed at ~41% and just isn't worth it.  Better to wait when I can have my income much lower so my tax rate is more in the 12% to 16% range.

And when you retire you can set up a business to sell your books to yourself at a loss and then average that against any profits 

 

[shadroch]

On 1/8/2022 at 8:01 AM, buttock said:

And when you retire you can set up a business to sell your books to yourself at a loss and then average that against any profits 

 

Way too much paperwork for that. Why can't they leave the little folk alone and go after real criminals?

[WeR138]

On 1/7/2022 at 7:55 PM, fastballspecial said:

Won't matter. What I meant was many people have well exceeded the 20K rule and don't know it 
yet because they didn't track their sales. They will get one this year and panic like every year only
many more will see them this year. 

This year I am looking forward to less competition as some panic and decide to stop selling .
Local shops should like this too as they will have less competition should be a great year for long time 
Sellers.

 

 

I second that emotion.

[batman_fan]

On 1/8/2022 at 9:01 AM, buttock said:

And when you retire you can set up a business to sell your books to yourself at a loss and then average that against any profits 

 

How about we start a business where we launder sales for the entire collecting community.  Sell us your "keeper" books for a huge lose which get promptly flipped back to you to offset the profits for your "flip" books. 

[buttock]

On 1/8/2022 at 10:09 AM, batman_fan said:

How about we start a business where we launder sales for the entire collecting community.  Sell us your "keeper" books for a huge lose which get promptly flipped back to you to offset the profits for your "flip" books. 

I don't see how this can go wrong. 

[lizards2]

On 1/8/2022 at 9:54 AM, buttock said:

On 1/8/2022 at 9:09 AM, batman_fan said:

How about we start a business where we launder sales for the entire collecting community.  Sell us your "keeper" books for a huge lose which get promptly flipped back to you to offset the profits for your "flip" books. 

I don't see how this can go wrong. 

especially if the final payment is in cash..., 

[batman_fan]

On 1/8/2022 at 10:54 AM, buttock said:

I don't see how this can go wrong. 

Don't we just need to form the company in the right foreign country?

Edited January 8, 2022 by batman_fan