Reporting sales of large $$ items

[Aquarian Sports Cards]

Currently auctions in PA are not required to report consignor sales numbers but we are required to keep records for 7 years in case anyone comes looking IRS, Divorce lawyer, estate lawyer etc.

[Jewish-collector]

A related question -

I recently received a message in ebay asked for my tax id # (social security number) because I went above the $600 threshold here in 2021 and ebay says they're required to generate a 1099 for year 2021 due to IRS requirements. My question is I never received this request in previous years when I was above the $600.

Is this request new because they moved me to managed payments in August 2021 or did something else changed ?

I know in the year 2022, the thresholds change to $600, but year 2021 should be the $20,000 and 200 transactions. Correct ? Thanks.

[CTDean]

Originally Posted by Jewish-collector

A related question -

I recently received a message in ebay asked for my tax id # (social security number) because I went above the $600 threshold here in 2021 and ebay says they're required to generate a 1099 for year 2021 due to IRS requirements. My question is I never received this request in previous years when I was above the $600.

Is this request new because they moved me to managed payments in August 2021 or did something else changed ?

I know in the year 2022, the thresholds change to $600, but year 2021 should be the $20,000 and 200 transactions. Correct ? Thanks.

While the Federal threshold for 2021 is $20,000 some states have different thresholds for State income taxes. I'm in Maryland and I understand they use the $600 threshold now.

[Fred]

I'm sorry, if someone told me I'd have to pay taxes on the potential future value of a collectible, I'd tell them to go piss off or that I purchased it expecting it to drop in value and therefore will take the tax loss for it.

Next thing you know someone will come up with an ownership tax, to be paid yearly, for having the privilege of owning some cool cardboard. Guess what - I'll tell them to piss off on that one also.

[BobC]

Originally Posted by Fred

I'm sorry, if someone told me I'd have to pay taxes on the potential future value of a collectible, I'd tell them to go piss off or that I purchased it expecting it to drop in value and therefore will take the tax loss for it.

Next thing you know someone will come up with an ownership tax, to be paid yearly, for having the privilege of owning some cool cardboard. Guess what - I'll tell them to piss off on that one also.

See Post #38, paragraph 4.

[BobC]

Originally Posted by Fred

I'm sorry, if someone told me I'd have to pay taxes on the potential future value of a collectible, I'd tell them to go piss off or that I purchased it expecting it to drop in value and therefore will take the tax loss for it.

Next thing you know someone will come up with an ownership tax, to be paid yearly, for having the privilege of owning some cool cardboard. Guess what - I'll tell them to piss off on that one also.

Actually Fred, such a thing has/does exist. Some states, or other taxinging authorities, may impose what is commonly known as a business personal property tax. In Ohio, where I'm from, they actually had such a tax in effect through around 2005. Luckily it was only on businesses though, but if you were a dealer, you had to add up the value of your card inventory on the last day of every taxable year, and pay a tax on the tangible inventory value. I'm not sure off the top of my head what other states may still have something similar in place.

That may be/have been one of the reasons, depending on where you lived, that you would always see businesses advertising year-end clearance sales. They wanted to clear as much inventory out as they could to pay less property tax.

[BobC]

Originally Posted by CTDean

While the Federal threshold for 2021 is $20,000 some states have different thresholds for State income taxes. I'm in Maryland and I understand they use the $600 threshold now.

And exactly why I suggested talking to a certified tax professional about your specific state.