Is it still possible to become a part time dealer?

Buythatcard · #1 10-18-2015, 10:03 AM

I had the same thoughts 13 years ago. Should I be a part time dealer? I still had my childhood collection of cards along with hundreds of autographs that I obtained thru the years.
I was buying cards from eBay to enhance my collection until I decided to try to make some extra money just to be used for my collection.
I had a full time job and put aside 3-4 hours every night to sell some of my cards. I would take the profits and roll them into more expensive cards.
Thirteen years later, I am still doing the same thing. I no longer have my personal collection because I sold it all. I still work a full time job and still spend 3-4 hours a night selling cards. I have met some great people along the way and have had so much fun doing this.
I am 4 years away from retirement and will probably still be doing this part time.

batkidiii · #2 10-18-2015, 10:56 AM

Wow! I want to thank all of you for the great advice. I might hold off on going the route, of say, Robert Edwards. A little too expensive for me to start off with. I will do plenty of research before I jump in. I am thinking of maybe starting with $1000.00.

BeanTown · #3 10-18-2015, 11:46 AM

I would target minor league team sets which are given out at the minor league ball parks. Go after the big name players. If the player makes the HOF then you have hit paydirt! Plus, they are the players first pro card and since very limited print run, its also the players rarest card except all the specialty cards that are made.

btcarfagno · #4 10-18-2015, 12:12 PM

Byron,

My best advice is that knowledge is king. If you do your homework and know what you can get for something before you buy it, you will make money. Have fun and it doesn't feel like work. Enjoy being temporary custodian of whatever wonderful items you purchase.

Tom C

buymycards · #5 10-18-2015, 12:17 PM

Adam made a good point concerning taxes. Every time that you make a dollar in profit you will need to pay 12.4 cents for Social Security taxes, 2.9 cents for Medicare taxes, plus, depending on your tax bracket, at least 15 cents for the IRS and maybe another nickel for state income taxes. So, that dollar of profit is down to about 65 cents after you pay the government.

MikeGarcia · #6 10-18-2015, 12:45 PM

Quote:

Originally Posted by buymycards

Adam made a good point concerning taxes. Every time that you make a dollar in profit you will need to pay 12.4 cents for Social Security taxes, 2.9 cents for Medicare taxes, plus, depending on your tax bracket, at least 15 cents for the IRS and maybe another nickel for state income taxes. So, that dollar of profit is down to about 65 cents after you pay the government.

...Rick , thank you , we appreciate your sharing your experiences and knowledge... but about this last post , might you know the dollar amount at which it is necessary for an amateur like most of us are , to do tax set-asides so as to comply with at least the federal tax regs ? At times , some years , I actually do come out a few dollars ahead of the game ; but I consider myself just a hobbyist buyer/seller and any profits are usually accidental and an unintended happy surprise.... do the federales share my la-la-land delusions ??

GehrigFan · #7 10-18-2015, 12:54 PM

As someone already mentioned, the hardest part is being both a collector AND dealer. It is very difficult to do both and keep them separate. The dealer side sees a nice breakup value in a lot, but when you get them in, the collector side thinks, "hmmm... these are nice, I think I'll keep them awhile!" Not to say you can't do both - it is just difficult.

I would strongly advise that you start "fresh" as a dealer, though - don't mix in the cards from your personal collection if possible. It is very difficult to reconcile taxes and records when you "deal" a card that was in your personal collection for years and didn't purchase it as a dealer. Keep diligent receipts of everything you spend - not just on cards, but travel to set up at shows, selling fees (eBay, PayPal, Auction Houses, etc.), etc.

Good luck!
Mark

swarmee · #8 10-18-2015, 01:00 PM

Want to be a part time dealer?

http://www.comc.com/Promotions/Port_Sale

Start by making offers there. No messy sending packages all over the world. COMC does it for you.

http://www.blowoutcards.com/forums/e...cesses-14.html

btcarfagno · #9 10-18-2015, 12:59 PM

Anyone in a high tax bracket needs to know that the maximum tax on their profits is 28%. Not their regular tax rate. Plus self employment tax whatever your bracket it.

Tom C

Exhibitman · #10 10-18-2015, 05:39 PM

Quote:

Originally Posted by btcarfagno

Anyone in a high tax bracket needs to know that the maximum tax on their profits is 28%. Not their regular tax rate. Plus self employment tax whatever your bracket it.

Tom C

No, that is the long term capital gains rate on cards you sell as an investor if held for more than a year [see IRS Topic 409]. And there would be no self-employment tax on that form of capital gain because it is not active business income. If you undertake a 'real' business and generate active income, whether via business entity filing its own return or Schedule C filing, you pay the regular marginal income tax rate and self-employment taxes but you can also take advantage of the full range of business deductions, like attending the National. As long as you are profitable 3 of 5 years: if you run perpetual losses the IRS may treat your business as a hobby.

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