Ebay tax reporting drops from $20,000 to $600

[Michael B]

Bob,

I admire your willingness to assist all of the handwringers. And gratis, no less! The patience of Job. I get it all the time even from people in my own office. Explaining the UCC code and District of Columbia statutes on property law. I learned 4 simple rules over 30 years ago that have helped. I sleep quite well obeying them.

1. Use/consult a tax professional.
2. Report your income.
3. Pay your taxes.
4 When in doubt refer to Rule #1.

I have used the same person since 1989 and the guidance has been invaluable.

[BobC]

Originally Posted by Michael B

Bob,

I admire your willingness to assist all of the handwringers. And gratis, no less! The patience of Job. I get it all the time even from people in my own office. Explaining the UCC code and District of Columbia statutes on property law. I learned 4 simple rules over 30 years ago that have helped. I sleep quite well obeying them.

1. Use/consult a tax professional.
2. Report your income.
3. Pay your taxes.
4 When in doubt refer to Rule #1.

I have used the same person since 1989 and the guidance has been invaluable.

Thanks, appreciate that. I didn't bother chiming in much over the years, but more recently have gotten tired of seeing people who clearly have no real tax experience or knowledge posting tax related comments and responses that are so wrong, it is not funny. And then I think of all the people that end up reading those posts who may actually think what they are reading is true or correct, and it starts bothering the heck out of me. Especially with all the tax crap that has been happening over the last 4-5 years, and is going to continue going forward. I'm not really telling anyone what they should or shouldn't do when it comes to their taxes, just providing some info and background so they can hopefully make a better, more well-informed decision for themselves. And with the way flippers and investors have really invaded our hobby in recent years, along with the seemingly insane surge in prices, we are definitely becoming more noticeable to tax authorities. And they can (and already have in many cases) also influence and impact how people decide to eventually report their hobby activities and reflect such on their tax returns.

Glad to hear you've got your own trustworthy, long term, tax person. That can make life a lot easier for many people. Not necessarily for everyone, but for way more people than you can probably imagine. And absolutely love your four rules, especially #4. Have my own mantra I've repeated over the years that I always liked to tell clients: Tax evasion is a crime, but tax avoidance is your Constitutional and God given right!

And as for offering help gratis, wasn't looking for anything. But I do collect a lot of different pre- and post-war sets and cards, and seem to especially like oddball and obscure things. So if anyone got some knowledge and help from my posts, and feels so inclined to send me a duplicate or extra card/item or two they may have no real use or need for as thanks, I won't say no. LOL.

I don't know everything, but if someone has questions, I'll try to help. Thanks.

[Michael B]

Originally Posted by BobC

Thanks, appreciate that. I didn't bother chiming in much over the years, but more recently have gotten tired of seeing people who clearly have no real tax experience or knowledge posting tax related comments and responses that are so wrong, it is not funny. And then I think of all the people that end up reading those posts who may actually think what they are reading is true or correct, and it starts bothering the heck out of me. Especially with all the tax crap that has been happening over the last 4-5 years, and is going to continue going forward. I'm not really telling anyone what they should or shouldn't do when it comes to their taxes, just providing some info and background so they can hopefully make a better, more well-informed decision for themselves. And with the way flippers and investors have really invaded our hobby in recent years, along with the seemingly insane surge in prices, we are definitely becoming more noticeable to tax authorities. And they can (and already have in many cases) also influence and impact how people decide to eventually report their hobby activities and reflect such on their tax returns.

Glad to hear you've got your own trustworthy, long term, tax person. That can make life a lot easier for many people. Not necessarily for everyone, but for way more people than you can probably imagine. And absolutely love your four rules, especially #4. Have my own mantra I've repeated over the years that I always liked to tell clients: Tax evasion is a crime, but tax avoidance is your Constitutional and God given right!

And as for offering help gratis, wasn't looking for anything. But I do collect a lot of different pre- and post-war sets and cards, and seem to especially like oddball and obscure things. So if anyone got some knowledge and help from my posts, and feels so inclined to send me a duplicate or extra card/item or two they may have no real use or need for as thanks, I won't say no. LOL.

I don't know everything, but if someone has questions, I'll try to help. Thanks.

I get what you are saying. With you, tax law, with me property law. I have been doing what I do for 36+ years. I know more than 95% or more of the attorneys when it comes to that. I got my second wife through property in law school. The attorneys always try to finesse it when I tell them something that should be done. When they hem and haw I just tell them that I keep ALL of my records. If it comes back across my desk in a year or two and the issue is not fixed the new attorney will know exactly who handled it the last time.

I have also used your mantra for 30 plus years. Unfortunately, it is lost on some people so I compose my rules.

It is a wise man who knows what he knows and is willing to admit what he doesn't.

I cannot help with the the cards. I do not collect baseball at all. I collect Olympic photography and buy and sell mainly pre-1980's Olympic autographs. I mainly contribute on the other side, but I like the community and read threads on the main page that catch my eye.

[BobC]

Originally Posted by Michael B

I get what you are saying. With you, tax law, with me property law. I have been doing what I do for 36+ years. I know more than 95% or more of the attorneys when it comes to that. I got my second wife through property in law school. The attorneys always try to finesse it when I tell them something that should be done. When they hem and haw I just tell them that I keep ALL of my records. If it comes back across my desk in a year or two and the issue is not fixed the new attorney will know exactly who handled it the last time.

I have also used your mantra for 30 plus years. Unfortunately, it is lost on some people so I compose my rules.

It is a wise man who knows what he knows and is willing to admit what he doesn't.

I cannot help with the the cards. I do not collect baseball at all. I collect Olympic photography and buy and sell mainly pre-1980's Olympic autographs. I mainly contribute on the other side, but I like the community and read threads on the main page that catch my eye.

Ha Ha,

I hear you when it comes to attorneys. Usually when you get involved with an attorney in some sale/merger, or other big, complicated deal involving multiple people and/or entities, they always try to come in, take over, and act like the quarterback to, I guess, impress the client to justify their fees and have everything done how they like and want. I learned to just chill and sit back because the clients would never sign anything until I looked it over. I'd find all the mistakes and errors, and also point out the problems and omissions. I sometimes wondered if the attorneys actually ever paid attention when people told them what the deal/transaction was, or how it was supposed to go down and work tax-wise. Don't get me wrong, there are a lot of great attorneys, and then there are a lot of other attorneys. LOL

Add about 9-10 years on to your experience for me. I started in the '70s, so this is the 6th different decade I've worked in.

And I also like your saying about being a wise man. I have a little bit different take on that topic and have told people through the years that the more I know or learn, the dumber I feel. And they'd invariably ask me what I meant. And I'd tell them it seemed like every time I learned one new thing, I'd also discover there was like ten more things I didn't know and was now even dumber than before. It would always get a chuckle out of people, who would also agree I made a great point. LOL

Sounds like you have a great collecting activity/collection as well. I've never gotten that deep into the Olympics myself, but the athletes and stories behind a lot of the photographs you own have got to be truly amazing.

Take care.

[tschock]

Originally Posted by BobC

And as for offering help gratis, wasn't looking for anything. But I do collect a lot of different pre- and post-war sets and cards, and seem to especially like oddball and obscure things. So if anyone got some knowledge and help from my posts, and feels so inclined to send me a duplicate or extra card/item or two they may have no real use or need for as thanks, I won't say no. LOL.

I don't know everything, but if someone has questions, I'll try to help. Thanks.

Ah, but wouldn't you have to claim that card as income if someone considered it a 'payment' for your services?

But seriously, and to add to what someone already said, I appreciate all the information you are offering here. Even if a lot of it might not apply to me, it's still good to have a general understanding of the impact. Thanks!

[BobC]

Originally Posted by tschock

Ah, but wouldn't you have to claim that card as income if someone considered it a 'payment' for your services?

But seriously, and to add to what someone already said, I appreciate all the information you are offering here. Even if a lot of it might not apply to me, it's still good to have a general understanding of the impact. Thanks!

LOL

Nice try, but since I wasn't billing anyone, the item would be considered more of a thank you gift, and gifts are not considered as taxable income. And as long as someone giving a gift(s) to another person keeps the total amount/value of all such gifts to that person at no more than $16,000 for the 2022 year (up from $15,000 in 2021), they don't have to report or do anything else in regards to those gifts, or owe any gift taxes on them. And if the person giving the gift(s) is married, they can actually double the amount of gifts they'd like to give me in 2022 from $16K to $32K, and still not have to worry about paying any gift tax on it. However, the person giving the gift(s) to me, and their spouse, would want to each file a Form 709 gift tax return for 2022 to report that they agreed to split the gift(s) one of them gave me, between the both of them now.

Again, nice try, but don't ever attempt to BS a BSer!

[Michael B]

Originally Posted by BobC

LOL

Nice try, but since I wasn't billing anyone, the item would be considered more of a thank you gift, and gifts are not considered as taxable income. And as long as someone giving a gift(s) to another person keeps the total amount/value of all such gifts to that person at no more than $16,000 for the 2022 year (up from $15,000 in 2021), they don't have to report or do anything else in regards to those gifts, or owe any gift taxes on them. And if the person giving the gift(s) is married, they can actually double the amount of gifts they'd like to give me in 2022 from $16K to $32K, and still not have to worry about paying any gift tax on it. However, the person giving the gift(s) to me, and their spouse, would want to each file a Form 709 gift tax return for 2022 to report that they agreed to split the gift(s) one of them gave me, between the both of them now.

Again, nice try, but don't ever attempt to BS a BSer!

That $32,000 would probably buy a lot of nice vintage cards. Either that or one prism, refractor, blue chrome, laser cut, uniform patch signed on card 1/1 of the flavor of the month unproven rookie in the NBA or MLB who has not finished a full season, but had some good games.

[BobC]

Originally Posted by tschock

But seriously, and to add to what someone already said, I appreciate all the information you are offering here. Even if a lot of it might not apply to me, it's still good to have a general understanding of the impact. Thanks!

Do appreciate the comments and sentiments. But just because something may not specifically apply to you today, it doesn't mean that may not change tomorrow, or at some other point down the road. Just knowing about a lot of what I'm telling everyone won't necessarily answer all your questions, but it sure as heck will help you to at least realize when to start asking more questions and looking for help.

[isiahfan]

Just got my 1099-K yesterday and had to redo my taxes while I wait for my last K1. After shipping costs, shipping supplies, travel to National, cost of cards/supplies sold, snacks, meals while at National, simplified home office deduction, utilities, travel to USPS, etc.....figures out to almost a wash.