Bubbles Bursting 8 8

[Robot Man]

On 1/28/2022 at 11:07 AM, Monsters-n-heroes said:

The good ole days again ... maybe? ... I personally hope that this brings more people back to flea markets and comic and toy shows for in person selling and trading, but we'll see.

I plan to do a lot more shows and flea markets once the “cooties” subside a little more.

Much easier, profitable and fun than on line selling and buying.

I suspect, due to the new tax laws, selling at shows will really expand.

I have only done one show in the past two years and couldn’t take people’s money fast enough.

[Ryan.]

I used to stop at the ATM before hitting a show. Then, somewhere along the way, I stopped since all I needed was my phone and a credit card. Now I expect to have to start hitting those ATMs again. 

[Robot Man]

Yep, cash is now back in high fashion again. 

[Beige]

On 1/25/2022 at 5:53 AM, sfcityduck said:

I think you have it backwards.  The risk for a crypto investor is that they cashed out Crypto in 4Q last year when prices were high (as high as 67K a bitcoin in November), to buy other investments like comics or real estate, but did not set aside money for taxes. This is not unusual.  They may well have thought they could sell in 2022 to pay 2021 taxes.  (If you wait to fund the taxes in 2022 then you do not have to pay taxes on that transaction until 2023.)  If so, such a crypto investor may be in a bit of bind and facing selling while underwater if they bought crypto any time other than the month of July last year.  It may well be more palatable to unload part of the investment they bought than to sell more crypto at this point.

I'm going to ask a dumb question - so apologies in advance.

How do you 'cash-out' a crypto currency - ie swap coin based funds in your locked wallet for real cash?

[Math Teacher]

On 1/28/2022 at 11:11 AM, jimbo_7071 said:

Yes, I think the IRS is going to be cracking down on things like entrepreneurs (including dealers) buying books for their personal collections and booking them as "inventory" and using them to reduce their net profits. Twenty years ago it was a free-for-all; now the IRS is getting more sophisticated about catching things like that. I can't imagine those shenanigans are common enough to have a significant impact, though.

Based on what I have read about the IRS, with a six million+ tax submissions that have not been dealt with, the IRS should focus on getting people their refunds, instead of tilting at windmills at an instance that, if rectified, would amount to 0.00001% of the amount of money that the IRS takes in.

https://www.nj.com/news/2022/01/with-millions-of-tax-returns-on-backlog-from-2020-lawmakers-call-on-irs-to-remove-penalties.html

 

[sfcityduck]

On 1/28/2022 at 1:50 PM, Beige said:

I'm going to ask a dumb question - so apologies in advance.

How do you 'cash-out' a crypto currency - ie swap coin based funds in your locked wallet for real cash?

Sell them for cash.

[adamstrange]

On 1/28/2022 at 2:23 PM, Robot Man said:

I have only done one show in the past two years and couldn’t take people’s money fast enough.

It hurts me when I hear people suffer.  I will happily take their money.

[tabcom]

On 1/28/2022 at 4:50 PM, Beige said:

I'm going to ask a dumb question - so apologies in advance.

How do you 'cash-out' a crypto currency - ie swap coin based funds in your locked wallet for real cash?

Gemini.com or PayPal two name a couple.

[Professor K]

On 1/28/2022 at 5:50 PM, Math Teacher said:

Based on what I have read about the IRS, with a six million+ tax submissions that have not been dealt with, the IRS should focus on getting people their refunds, instead of tilting at windmills at an instance that, if rectified, would amount to 0.00001% of the amount of money that the IRS takes in.

https://www.nj.com/news/2022/01/with-millions-of-tax-returns-on-backlog-from-2020-lawmakers-call-on-irs-to-remove-penalties.html

 

I don't understand all that but the part that says" Not only are some people whose returns have not been processed waiting for refunds, but the backlog can cost some taxpayers a lot of money in penalties and interest." is true. If you sell more than 600.00 and you don't claim it eventually they will catch up to you. And when they do you'll owe a lot more.....and at that point they might start digging even more. I know this from experience: When they come after you they come heavy. 

[fifties]

On 1/29/2022 at 8:48 AM, Professor K said:

I don't understand all that but the part that says" Not only are some people whose returns have not been processed waiting for refunds, but the backlog can cost some taxpayers a lot of money in penalties and interest." is true. If you sell more than 600.00 and you don't claim it eventually they will catch up to you. And when they do you'll owe a lot more.....and at that point they might start digging even more. I know this from experience: When they come after you they come heavy. 

I've sold books here, on eBay, & on a Facebook EC comics forum.  Would the eBay sales be the only ones I'd have to account to the gubamint for?

[Professor K]

On 1/29/2022 at 4:30 PM, fifties said:

I've sold books here, on eBay, & on a Facebook EC comics forum.  Would the eBay sales be the only ones I'd have to account to the gubamint for?

e bay and pay pal both now send 10-99's for any money received over 599.99. I'm not sure if any of the big three auction sites are now or will be doing the same. To keep this on topic I'll say I'm not sure if this will prolong or abbreviate the time until the bubble burst, assuming it will burst. I'm not sure of that either. Think I'll make "I'm not sure" my new catchphrase. 

I would think it would affect asking prices but not auction prices, then again............

Edited January 29, 2022 by Professor K
spelling correction

[MrBedrock]

On 1/28/2022 at 11:11 AM, jimbo_7071 said:

Yes, I think the IRS is going to be cracking down on things like entrepreneurs (including dealers) buying books for their personal collections and booking them as "inventory" and using them to reduce their net profits. Twenty years ago it was a free-for-all; now the IRS is getting more sophisticated about catching things like that. I can't imagine those shenanigans are common enough to have a significant impact, though.

How are they going to do this?

[D84]

On 1/29/2022 at 5:30 PM, MrBedrock said:

How are they going to do this?

 

[MrBedrock]

On 1/29/2022 at 5:33 PM, D84 said:

 

Exactly.

I mean if the IRS wants to have an agent in each store managing inventory so they can track each dollar in and each dollar out then maybe they could catch someone improperly holding inventory back. And if they want to come manage my inventory I would give them the keys to the shops so that could go through and organize every book in the back rooms (we have six stores). Heck, I would love for them to waste time and money doing that inane work in the hopes of finding a few books that may or may not have ended up one of my boxes at the house.

[adamstrange]

On 1/29/2022 at 6:38 PM, MrBedrock said:

Heck, I would love for them to waste time and money doing that inane work in the hopes of finding a few books that may or may not have ended up one of my boxes at the house  remote secure storage location.

Fixed.

[fifties]

On 1/29/2022 at 2:49 PM, Professor K said:

e bay and pay pal both now send 10-99's for any money received over 599.99.

So regardless of the sales venue, a PayPal 1099 would pretty well encompass everything sold online.  But of course the goods did have a cost basis, which could then be deducted, along of course with any shipping expense.  Guess I'll have to start keeping track of each comic book's cost.  For last year though, I'll just have to guess, and they might be just under the sale prices.  

[Professor K]

On 1/30/2022 at 12:25 AM, fifties said:

So regardless of the sales venue, a PayPal 1099 would pretty well encompass everything sold online.  But of course the goods did have a cost basis, which could then be deducted, along of course with any shipping expense.  Guess I'll have to start keeping track of each comic book's cost.  For last year though, I'll just have to guess, and they might be just under the sale prices.  

Well that's what I always thought. I'll get a little personal here as maybe my experience may help some folks. A few years ago I sold over 20k on e bay. All pay pal back then. Got sacked by the i r s a year later. They wanted a lot. About 50% of it, actually a little more. I went to an accountant. We claimed the items I sold cost me 50% of what I sold them for. Deducted 13% for fees, 10.00 shipping on each item, arrived at a number and sent them a check with the amended tax form. They took the money (which was pretty much all my profit) and I never heard from them again. 

Being that my lovely state started the 600.00 thing in 2021 I am going to an accountant again in a few weeks and see if I can do the same. I hope I can. I'm nervous because when I explained it to him on the phone he was a little hesitant about it. I hope we can deduct what we spent on these things, if not I'm very possibly going to jail. I mean that's how they got Al Capone right? 

But yeah anything you buy from this day on print out something that shows what you paid for it.

Edited January 30, 2022 by Professor K
spelling correction

[lou_fine]

On 1/29/2022 at 11:21 PM, Professor K said:

They took the money (which was pretty much all my profit) and I never heard from them again.

Did you hire a "fly by night" accountant as I thought you would have to pay capital gains taxes to the IRS only on the profit which you made after selling your books, as opposed to having to give all 100% of your profit to them?  

[fifties]

I just checked my PayPal account, "Tax Documents", and they posted, "Less paperwork for you. You don’t have any tax document on PayPal yet."

[Flex Mentallo]

The future of collecting is here...

Edited January 30, 2022 by Flex Mentallo