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

[SAllen2556]

Originally Posted by earlywynnfan

They do, but did you like it better when the IRS was toothless and people weren't paying their fair share? Why blame the currently-elected people for this?

My students have games to play when it's indoor recess. Two of the games have a gazillion pieces, and often they are left lying around. So I have pulled those games from the shelf. Some students blame me because they can't play them now, and some students blame the kids who couldn't clean the games up in the first place. Who would you blame?

"Whom" would you blame, not "Who". Hope you don't teach English.

I also want someone to define "fair share". There's never a number associated with that phrase.

[Michael B]

Originally Posted by SAllen2556

"Whom" would you blame, not "Who". Hope you don't teach English.

I also want someone to define "fair share". There's never a number associated with that phrase.

Actually, either who or whom could be correct. If the answer to the question is he or she then who would be correct. If the answer is they or them then whom would be correct.

[Shoeless Moe]

Originally Posted by Michael B

Actually, either who or whom could be correct. If the answer to the question is he or she then who would be correct. If the answer is they or them then whom would be correct.

Who's on first?

[Ray Van]

So I was speaking with my tax advisor who validated that any sales below $1000 are not subject to Capital Gains tax in Canada. Collectibles are classified as Listed Personal Property (LPP) which is "personal use property that usually increases in value over time". Sales of these items are subject to capital gains tax unless the acquiring cost and selling price are both below $1000 for an individual item.

[Stampsfan]

Originally Posted by Ray Van

So I was speaking with my tax advisor who validated that any sales below $1000 are not subject to Capital Gains tax in Canada. Collectibles are classified as Listed Personal Property (LPP) which is "personal use property that usually increases in value over time". Sales of these items are subject to capital gains tax unless the acquiring cost and selling price are both below $1000 for an individual item.

Thanks for this. Been wondering about this for awhile.

Cheers...

[Stupe the Second Sacker]

Hello all...A lot of knowledge on this forum which is why I joined. Thank you for that.

I read this thread (well nearly all of it) with great interest as I am a long time collector that would like to begin to liquidate. This has become a more intimidating and daunting task than maybe it was 20 years ago and I'd like to do it with the least hassle and most profit. My collection was always intended to supplement retirement so it's important, I take the best avenue while liquidating.

Last week, I did meet with a tax professional. She was knowledgeable, but as you might guess not an expert on sports cards/memorabilia. She spelled out several options for me:

1) Starting a sole proprietorship. This would allow me all the Schedule C deductions I encounter, however, she discouraged this because of self employment taxes. She mentioned income here would be taxed at my normal income tax rate (24%).

2) Starting a partnership with my silent partner wife, who would then become co-owner of the business (not worried about that) and would avoid self employment taxes. All of the benefits of the sole but with added tax advantage.

3) Just be a collectibles seller on ebay, where I would be able to deduct shipping, fees, supplies. Not sure what else. But I would be taxed at the higher collectibles tax rate, which I believe she said was 28%

So my question here is two fold:

1) What do you think most sellers in our hobby on ebay do? Option #3?
2) Is the added expense and complexity of #2 worth it? I'll assume #1 isn't a viable option unless there is some hidden benefit I can't remember her mentioning.
3) Edited to add a 3rd question...so I guess it's now three-fold. Do you need a TIN to sell at card shows?

Thank you in advance! These are complicated times in our once simple hobby.

Bob

[Tyruscobb]

Originally Posted by Stupe the Second Sacker

Hello all...A lot of knowledge on this forum which is why I joined. Thank you for that.

I read this thread (well nearly all of it) with great interest as I am a long time collector that would like to begin to liquidate. This has become a more intimidating and daunting task than maybe it was 20 years ago and I'd like to do it with the least hassle and most profit. My collection was always intended to supplement retirement so it's important, I take the best avenue while liquidating.

Last week, I did meet with a tax professional. She was knowledgeable, but as you might guess not an expert on sports cards/memorabilia. She spelled out several options for me:

1) Starting a sole proprietorship. This would allow me all the Schedule C deductions I encounter, however, she discouraged this because of self employment taxes. She mentioned income here would be taxed at my normal income tax rate (24%).

2) Starting a partnership with my silent partner wife, who would then become co-owner of the business (not worried about that) and would avoid self employment taxes. All of the benefits of the sole but with added tax advantage.

3) Just be a collectibles seller on ebay, where I would be able to deduct shipping, fees, supplies. Not sure what else. But I would be taxed at the higher collectibles tax rate, which I believe she said was 28%

So my question here is two fold:

1) What do you think most sellers in our hobby on ebay do? Option #3?
2) Is the added expense and complexity of #2 worth it? I'll assume #1 isn't a viable option unless there is some hidden benefit I can't remember her mentioning.

Thank you in advance! These are complicated times in our once simple hobby.

Bob

Welcome to the forum. Great questions. Net54’s resident CPA, Bob C., will probably soon respond. He will probably thoroughly answer each question in great detail.

[Aquarian Sports Cards]

Originally Posted by Stupe the Second Sacker

I'd like to do it with the least hassle and most profit.

These are not quite mutually exclusive but maybe inversely proportionate.