Possible new tax law?

[Fred]

So now it looks like this whole free-ride thing is coming to a close with ebay. I haven't sold a thing on fleabay for over a decade so I have no clue what it's been like. Even when I did sell things, I didn't sell much.


BUYERS TAXES
Ebay adds the local tax to the final sale (sans shipping). My local tax rate sucks, it's 8.75%. It sucks but the assumption is the correct local tax will go to the city I live in (well, at least that's the assumption). If a seller wants to pay the going rate/price for a card, do they include the sales tax in their consideration to buy the card? You know the buyer will always include the tax in the total cost of the card.


SELLER TAXES
Maybe that's why sellers seem to have crazy BIN prices. Perhaps those sellers have been paying their taxes all along and included their taxes as a cost of doing business. Just think, by the time a seller pays the fleabay fees and income taxes, that could account for 25% or more of the sale price.

So, is a seller supposed to absorb the loss and sell the goods for the going rate or does the seller add another 25% to the final sale price to cover all the fees and taxes? I figure if you're a seller you're going to want to collect the going rate for the card (after the fees and taxes have been paid out).


Now - do I give a crap. Not really. I figure I'll pay what I want for a card. Regarding sellers - well, time to belly up to the bar and pay the taxes on the business that allows you to receive income.

Hey Leon, when are does the BST start instituting the sales tax and income tax collections?

[hammertime]

I think it's great. Let's flood the IRS with 1099s, they can't audit us all!

[doug.goodman]

Originally Posted by hammertime

I think it's great. Let's flood the IRS with 1099s, they can't audit us all!

Spoken like a true tax cheat

[Tyruscobb]

I’m not going to bash anyone for his/her tax affairs. That is between that person and federal, state, and local governments. I know each state has different laws, but how many sellers on this site’s b/s/t section are collecting and properly paying sale’s taxes?

[buymycards]

Originally Posted by Tyruscobb

I’m not going to bash anyone for his/her tax affairs. That is between that person and federal, state, and local governments. I know each state has different laws, but how many sellers on this site’s b/s/t section are collecting and properly paying sale’s taxes?

I am, and I pay sales tax and Federal and State income taxes on my sales at card shows, and I pay the use tax for my out of state purchases when tax is not collected.

Don't assume that everyone is crooked.

[BCauley]

I'm all for no Joe U.S. Citizen paying any taxes until all elected officials have theirs paid in full.

[doug.goodman]

Originally Posted by Fred

...So, is a seller supposed to absorb the loss and sell the goods for the going rate or does the seller add another 25% to the final sale price to cover all the fees and taxes?...

The seller is supposed to do what has always been done and factor in expenses when selling an item.

(cost of card) + (costs to sell) + (profit wanted) = selling price

Pretty simple.

Obviously, if you bought a Steve Sax rookie card for $20 the specifics of your selling price equation may have to change a bit to :

(cost of card) + (costs to sell) - (loss willing to accept) = selling price

Doug "I tend to use the second equation" Goodman