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Comic Art Live questions
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Started by KirbyCollector,

25 posts in this topic

KirbyCollector

KirbyCollector

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Posted (edited)

Thinking about participating in CAL, was going to specify a) US shipping only and b) payment by check. The first is simple, I just don't feel comfortable sending anything outside of the US. As for the second, while I have nothing against PayPal I hate the new IRS rule about paying taxes on e-payments over $600. The question is, how much of an impediment will either be to selling? I'm pricing everything at recent auction comparables minus BP, so they should get attention.

Edited by KirbyCollector
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comix4fun

comix4fun

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On 11/8/2023 at 7:14 AM, KirbyCollector said:

Thinking about participating in CAL, was going to specify a) US shipping only and b) payment by check. The first is simple, I just don't feel comfortable sending anything outside of the US. As for the second, while I have nothing against PayPal I hate the new IRS rule about paying taxes on e-payments over $600. The question is, how much of an impediment will either be to selling? I'm pricing everything at recent auction comparables minus BP, so they should get attention.

It might help to think about it this way...It's not a new tax, just new 1099 reporting limits. But it's only taxes on net profit and not full sales price. If you sell $1000 worth of items, but your cost of items and related expenses (shipping, storage, materials) are $1100 you don't owe anything. If your cost and related expenses are $800 you owe on $200, as it's always been regardless of 1099 reporting. Selling groups online are awash with folks engaging in the rending of garments before digging into it well enough.

So, you might not want to eschew PayPal payments for that reason, especially if you believe it will cost you customers, sales, or gross amounts obtained. 

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KirbyCollector

KirbyCollector

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On 11/8/2023 at 9:04 AM, comix4fun said:

It might help to think about it this way...It's not a new tax, just new 1099 reporting limits. But it's only taxes on net profit and not full sales price. If you sell $1000 worth of items, but your cost of items and related expenses (shipping, storage, materials) are $1100 you don't owe anything. If your cost and related expenses are $800 you owe on $200, as it's always been regardless of 1099 reporting. Selling groups online are awash with folks engaging in the rending of garments before digging into it well enough.

So, you might not want to eschew PayPal payments for that reason, especially if you believe it will cost you customers, sales, or gross amounts obtained. 

I hate the new rule, just leave the little guy alone. I just did a show this past weekend (antiques, my other hobby) and the time and effort which went into it makes paying any taxes (on the small amount I made) insulting when Apple, Amazon et al avoid billions in taxes via "subsidiaries" overseas. I pay my taxes on regular income faithfully, but the chase to tax the informal stuff generated by hobbies drives me nuts.

Edited by KirbyCollector
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Will_K

Will_K

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Unlikely that a restriction to US addresses generally cost sales.  If absolutely necessary, a collector can ask a US based friend.

Paying by check would not bother me. 

I'll have to run the numbers and figure out the capital gains on my art sales this year (paid by check). 

Good luck with your sale.

Edited by Will_K
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Dr. Balls

Dr. Balls

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On 11/8/2023 at 9:13 AM, malvin said:

a seller only accepting cheques won't deter me from buying if it's something I like at the right price.

Malvin

I don't like sending checks unless it's someone I know who has a established reputation - sending a check is as reliable as sending Friends and Family, there is no protection or recourse if they cash your check and never send the art.

I've sent checks to boardies here, with no problems - but that would deter me on a place like CAL where I may not know the reputations of a lot of sellers.

However, I am excited about CAL - I missed a couple really nice pieces last time since I really didn't know how the whole thing worked. My takeaway lesson: if you think it's a good price and it's a piece you want, buy it. If you don't, it'll be gone. I missed out on two covers I should have immediately pulled the pin on, and ended up getting one that was kinda cool, but was mostly driven by my desire to participate in the event. I still like the cover, but I am still thinking about the ones I lost out on. :makepoint:

Edited by Dr. Balls
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Shemp

Shemp

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On 11/8/2023 at 5:14 AM, KirbyCollector said:

Thinking about participating in CAL, was going to specify a) US shipping only and b) payment by check. The question is, how much of an impediment will either be to selling? 

I have no issue with sending a check. I have done it a lot this year, to dealers and collectors. 

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pemart1966

pemart1966

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Firstly - If the IRS is involved it isn't a "rule".  It's the law.

Secondly, if you're ever audited and can't satisfactorily explain the checks deposited to your account, you'll wish that you'd taken the time to pay that tax in the first place...  :preach:

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KirbyCollector

KirbyCollector

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Thank you everyone for the input, I'm going to give it a try with those parameters.

BTW Pemart, yes, a 2021 law passed by Congress changed the amount to $600. But this change is properly referred to as a rule -- this is the official term the IRS uses when referring to its tax governance guidelines and requirements. Like all rules, they are subject to change -- as this one was in 2022, when the IRS suspended it because there was too much "confusion" (i.e., political hatred) of it.

Edited by KirbyCollector
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redrighthand

redrighthand

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Correct me if I'm wrong (PLEASE) but I don't think the reporting is triggered by personal  Zelle, Venmo or Papyal F&F (but is triggered by goods and services). In these instances it could easily be a person paying back another or gifting (the exclusion amount for which is 16k). Of course, I suppose if you have too many of those, you might trigger an audit.

I am absolutely speaking out of my , so again - please correct me if I'm wrong.

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vodou

vodou

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On 11/8/2023 at 3:59 PM, KirbyCollector said:

Thank you everyone for the input, I'm going to give it a try with those parameters.

BTW Pemart, yes, a 2021 law passed by Congress changed the amount to $600. But this change is properly referred to as a rule -- this is the official term the IRS uses when referring to its tax governance guidelines and requirements. Like all rules, they are subject to change -- as this one was in 2022, when the IRS suspended it because there was too much "confusion" (i.e., political hatred) of it.

The change in law affected reporting requirements for third party payment processors (PayPal et al) not taxpayers. Call it a law or a rule, if you wish, that’s semantics as it’s not about you, a taxpayer, anyway. It regulates THEM. Your legal obligation and liability for not fulfilling that obligation was not changed, as a taxpayer, you must report your gains net allowable deductions or you’re in violation of the law.

Hey, play with fire…seriously…go for it, if that’s your line in the sand…it won’t be any of us that will be audited, and penalized, for your incomplete or false reporting!

IMG_6055.jpeg

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redrighthand

redrighthand

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On 11/8/2023 at 8:43 PM, Unstoppablejayd said:

I’ve participated every time and never took payment that had a fee… meaning I’ve only taken PayPal ff check or Venmo friend. and it has never been an issue!

 

The rule hasn't fully taken effect yet. If you trigger a 1099-K (i think it's K). You wouldn't get one until this coming January (unless they suspend it again).

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