Starting an Ebay Business

[Gusturd]

I can't thank everyone enough for chiming in and I can't believe there isn't more discussion of this topic on this forum. You'd think there'd be a permanent "How to" thread, as I'm guessing 100% of the people posting here (or their heirs) will face these questions at some point.

I've certainly learned a lot reading (and re-reading) the replies here and the clearer things become the more complicated they seem to become.

When it comes time to report these sales, would/could I actually report them three different ways? I'd see myself fitting all three categories. I have the cards I display, the cards I keep locked away and the cards I've just accumulated and don't care so much about that I would probably start selling with.

And I said I have a spreadsheet for most of my "significant" cards, but that doesn't cover everything. I've got plenty of memorabilia and lesser cards I'd have a hard time remembering where I got, never mind what I paid. How do you determine cost basis for that? Do you use "book value"? Ebay past sales? Guesstimate? What passes muster here and what doesn't?

Thanks again for the continued participation here. I'm sure I'm not the only one this information is helping.

[buymycards]

[QUOTE=Gusturd;2085300]I can't thank everyone enough for chiming in and I can't believe there isn't more discussion of this topic on this forum. You'd think there'd be a permanent "How to" thread, as I'm guessing 100% of the people posting here (or their heirs) will face these questions at some point.

There have been dozens of tax discussion threads over the years on this forum. Try a search for "taxes", "business taxes", etc.

[Gusturd]

[QUOTE=buymycards;2085301]

Originally Posted by Gusturd

I can't thank everyone enough for chiming in and I can't believe there isn't more discussion of this topic on this forum. You'd think there'd be a permanent "How to" thread, as I'm guessing 100% of the people posting here (or their heirs) will face these questions at some point.

There have been dozens of tax discussion threads over the years on this forum. Try a search for "taxes", "business taxes", etc.

No doubt there have been. But why have to go search, only to find each has ample amounts of outdated and/or inaccurate information? Why not have it pinned as a reference so people don't have to keep asking?

Thanks for your input.

[timzcardz]

Originally Posted by buymycards

No doubt there have been. But why have to go search, only to find each has ample amounts of outdated and/or inaccurate information? Why not have it pinned as a reference so people don't have to keep asking?

Thanks for your input.

The answer to your question is at the very top of the very page on this forum . . .

"Welcome to Net54baseball.com. These forums are devoted to both Pre- and Post- war baseball cards and vintage memorabilia, as well as other sports."


The business implications are about tax codes, not baseball cards.

And very seldom is there anything pinned to the top.

[Gusturd]

Originally Posted by timzcardz

The answer to your question is at the very top of the very page on this forum . . .

"Welcome to Net54baseball.com. These forums are devoted to both Pre- and Post- war baseball cards and vintage memorabilia, as well as other sports."


The business implications are about tax codes, not baseball cards.

And very seldom is there anything pinned to the top.

This thread is very much about baseball cards and I would think much more relevant than the "Worst type of Ebay guy" thread that's been very active for weeks now.

[RL]

irs....

https://www.irs.gov/businesses/small...-self-employed

[Gusturd]

Originally Posted by RL

irs....

https://www.irs.gov/businesses/small...-self-employed

Interestingly, If you click the "starting a business" link and then click "is it a business or a hobby", I believe the site provides obsolete information. Am I wrong about that?

[Aquarian Sports Cards]

Originally Posted by Gusturd

This thread is very much about baseball cards and I would think much more relevant than the "Worst type of Ebay guy" thread that's been very active for weeks now.

Kind of contradictory, no?

[Gusturd]

Originally Posted by Aquarian Sports Cards

Kind of contradictory, no?

Not really. Just goes to show people here are interested in topics on the fringe of the hobby as well. But there are a few "by the book" members who are easily puckered and compelled to "yell at the clouds" rather than just ignoring a topic that doesn't interest them. Every forum has them.

[BobC]

[QUOTE=Gusturd;2085319]

Originally Posted by buymycards

No doubt there have been. But why have to go search, only to find each has ample amounts of outdated and/or inaccurate information? Why not have it pinned as a reference so people don't have to keep asking?

Thanks for your input.

An earlier poster accurately noted this is a forum about collecting cards and such, and not establishing and operating a business with all the tax concerns and issues that go with it. However, threads do come up with questions about taxes or business/hobby aspects time and again, and people try help and answer as best they can when they do. You don't really want to start adding links and resources concerning taxes and establishing/operating businesses on this site as in addition to not being a main purpose of this forum, you then would appear to be entering the realm of now offering tax and business related legal advice. There is no one actually going to be monitoring such information to try and make certain it is accurate. And because tax laws do continue to change over time, things that are being posted and shown on a forum like this will then need to be constantly monitered and updated as those changes occur. And who is going to take the responsibity to do that?

[BobC]

Originally Posted by Gusturd

I've certainly learned a lot reading (and re-reading) the replies here and the clearer things become the more complicated they seem to become.

When it comes time to report these sales, would/could I actually report them three different ways? I'd see myself fitting all three categories. I have the cards I display, the cards I keep locked away and the cards I've just accumulated and don't care so much about that I would probably start selling with.

Yes it can be very complicated and confusing, without any easy, clear-cut answers. Also why it may make a lot of sense to consult a tax professional to review a person's unique set of tax facts and circumstances.

And yes, someone can have card sales under all three different options/treatments (Dealer, Investor, Collector) in the same year. Would need to keep proper records and such to do so. Not even unique to selling cards either. Think of a guy who buys and immediately flips and sells a house. That is treated as a sale of inventory subject to profit being treated as ordinary income. For that he's a Dealer. Same guy sells another house he had rented out for a number of years. Gain on this sale would likely get taxed as long term capital gain. So for that sale he's kind of like an Investor. And finally, he sells the house he lived in for years. Most likely any profit on the sale wouldn't be taxable, but if sold for a loss, he wouldn't get to use/deduct the loss on his tax return either. So for that house he's kind of like a Collector selling a personal asset.

I passed the CPA exam back in the 70's, and have been practicing ever since, and as such know a little of what I'm talking about. So if you have any questions, you (or anyone else) can just PM me and maybe exchange phone numbers to discuss further. It would be a lot faster and easier than all this typing. LOL

[Gusturd]

Originally Posted by BobC

Yes it can be very complicated and confusing, without any easy, clear-cut answers. Also why it may make a lot of sense to consult a tax professional to review a person's unique set of tax facts and circumstances.

And yes, someone can have card sales under all three different options/treatments (Dealer, Investor, Collector) in the same year. Would need to keep proper records and such to do so. Not even unique to selling cards either. Think of a guy who buys and immediately flips and sells a house. That is treated as a sale of inventory subject to profit being treated as ordinary income. For that he's a Dealer. Same guy sells another house he had rented out for a number of years. Gain on this sale would likely get taxed as long term capital gain. So for that sale he's kind of like an Investor. And finally, he sells the house he lived in for years. Most likely any profit on the sale wouldn't be taxable, but if sold for a loss, he wouldn't get to use/deduct the loss on his tax return either. So for that house he's kind of like a Collector selling a personal asset.

I passed the CPA exam back in the 70's, and have been practicing ever since, and as such know a little of what I'm talking about. So if you have any questions, you (or anyone else) can just PM me and maybe exchange phone numbers to discuss further. It would be a lot faster and easier than all this typing. LOL

That's a gracious offer Bob. Thank you.