Quote:
Originally Posted by BobC
No comment regarding the political aspects, I'll leave that to others.
As for the tax side of things, how can taxes suddenly be causing you to lose money on 90% of your sales? You do know you only pay taxes on NET capital gains from collectibles sales, after deducting the cost of the items sold, plus the direct transaction costs to acquire and sell you items (which includes Ebay's fees)? And the 28% tax is only a MAXIMUM tax rate on your net long term gains from collectible's sales. Depending on what other income is being reported on your return, the tax rate on your long term collectible gains can be much lower than that. The only way you'd be losing money on collectible's sales if you just sell something for less than what you paid for it, plus the Ebay fees.
|
I'm definitely new to this, I don't play with stocks or really any investments. Mainly Just cash and cards as much as possible (I know cards are an investment but I guess I never looked at them that way, especially when selling on eBay to purchase another card or whatnot). I honestly don't know the ins and outs at all. Just from simple research headlines that I guess didn't explain it very well to me. I was under the impression the deductions were only possible if you were set-up as a business. I'm pretty sure the eBay fee part at least? Maybe not, I have no idea.
I have only based my possible losses on the information I had which added up to the 40% of the total sale which is clearly wrong. I almost always sell on smaller margins so this implied say I got a card for $100, sold it for $150 I would be taxed 40% of $150 being $60. I wasn't aware it was only on the net gain. I Actually feel foolish now knowing that. I also couldn't find anything not flashing a 28% tax rate until I dug far deeper. Seems clickbait and scare tactics definitely worked on me this time.
Thanks for the rundown.
I want to make it clear though, I still think it is unnecessary and terribly egregious for a small time seller. And should be reversed asap.