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Labratt21
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http://www.washingtonpost.com/wp-dyn/content/article/2010/05/29/AR2010052900341.html
Not really a surprise here.
Not really a surprise here.
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IRS wants a cut of your ebay sales
- Thread starter Labratt21
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LazerShow15
New member
When selling cards who actually reports this unless your one of the big guys.
ChasHawk
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justwar
Active member
- Aug 7, 2008
- 1,805
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They can have it......... IF I can write off my losses on wax and singles.
sportscardtheory
Active member
This is where it becomes unacceptable, THEY ALREADY RECEIVE TAXES FROM EBAY. Now they want to double-dip. This country is going to shat.
LazerShow15
New member
js0000001 said:
How can you write it off if you throw away the evidence like me, ha ha.
muskiesfan
New member
sportscardtheory said:
Have to pay for Healthcare somehow.
bowmanchromeandorr
New member
"cause i'm the taxman yeah i'm the taxman walk the street and i'll tax your feet, i'm the taxman", this is what happens when certain people are in charge (you know just about all of them), i'm not sayin' i'm just sayin' ...
I'm moving to Del Boca Vista right smack dab between the Costanzas and the Seinfelds
I'm moving to Del Boca Vista right smack dab between the Costanzas and the Seinfelds
A_Pharis
Active member
I think you'd only be able to write off what you lost on items sold. You wouldn't be able to write off a loss on a case if you only attempt to sell 3 cards out of it. You'd have to break it down to each card's worth as a proportion to the case's cost. That'd be like me going and buying 30 shirts and only attempting to sell one and then claiming the cost of all 30 shirts.
If you are going to play the "loss" game, you're going to end up shooting yourself in the foot by having to provide purchase cost and profit of each card.
And they tax eBay on their business. They still have every right to tax you on profits gained. Where have you been?
If you are going to play the "loss" game, you're going to end up shooting yourself in the foot by having to provide purchase cost and profit of each card.
And they tax eBay on their business. They still have every right to tax you on profits gained. Where have you been?
muskiesfan said:
You do realize that if this is indeed true, you will be able to report your losses as well? Any Accountant with a brain will make this work to the advantage of their client...
- Aug 7, 2008
- 8,322
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This is certainly going to be impactful to many here, especially those who do larger amounts of transactions on ebay.
What's really import is keeping track of costs, so if you sell $20K worth of cards online but those cards came from $30K worth of wax cases, then you should not have a tax liability.
You should offset all of your ebay revenue with:
Cost of cards when you originally purchased them
Ebay Fees
Paypal Fees
Shipping Fees
Shipping Supplies - bubble mailers, labels, printer
Milage to and from post office
and so on and so forth.
The people who run businesses likely already report eBay profit, the small sellers who don't won't have to, its the people in the middle this will impact.
To be sure eBay is ticked as well, this isn't going to drive business to their site.
What's really import is keeping track of costs, so if you sell $20K worth of cards online but those cards came from $30K worth of wax cases, then you should not have a tax liability.
You should offset all of your ebay revenue with:
Cost of cards when you originally purchased them
Ebay Fees
Paypal Fees
Shipping Fees
Shipping Supplies - bubble mailers, labels, printer
Milage to and from post office
and so on and so forth.
The people who run businesses likely already report eBay profit, the small sellers who don't won't have to, its the people in the middle this will impact.
To be sure eBay is ticked as well, this isn't going to drive business to their site.
muskiesfan
New member
phillyfan0417 said:
I get it, it was just a poor attempt at humor on my part.
A_Pharis
Active member
For example:
A business has to pay employment tax per employee, and you - as the employee - have to pay tax on your salary. Same concept.
A business has to pay employment tax per employee, and you - as the employee - have to pay tax on your salary. Same concept.
A_Pharis
Active member
masonphillip said:
Yeah, but it really doesn't work in a way that you claim the ENTIRE case cost if you did not attempt to sell the entire case. If you could claim a loss on items that you throw into a box in your closet, then I'd never have to pay taxes.
You're going to end up (if you try to play the game with the IRS) having to provide a break down per case of each card's worth.
For instance:
If a case is $700, and there are 7000 card in it, then - as a portion of that case - each card presented $0.10 overhead. So if you only try to sell the 10 major hits from the case, then you would only be able to claim the individual overhead value of those 10 cards.
I can probably speak to my CPA about it.
ccouch (Chad)
Member
- Aug 8, 2008
- 444
- 6
You guys do realize that they've ALWAYS wanted it, right? The laws haven't changed. They've just had a difficult time enforcing the law because they lacked the mechanisms to do so. The new 1099 reporting will change that.
And I'm amused at how many times I see people say that they'll just deduct all of their purchases for the year. If you get audited, even a slightly dumb IRS agent will laugh you out of the room on that one. They'll want to know what your cost basis was in the items that you sold. As an example, the guy who sold the Strasburg Superfractor last week ain't gonna be able to deduct all of his purchases for the year to offset the sale. His cost basis in the card is at a maximum what he paid for the case and would even more likely be determined to be the cost of the case divided by the number of cards in the case.
Commence people telling someone who has a masters degree in taxation that he doesn't know what he's talking about in 3... 2.... 1...
And I'm amused at how many times I see people say that they'll just deduct all of their purchases for the year. If you get audited, even a slightly dumb IRS agent will laugh you out of the room on that one. They'll want to know what your cost basis was in the items that you sold. As an example, the guy who sold the Strasburg Superfractor last week ain't gonna be able to deduct all of his purchases for the year to offset the sale. His cost basis in the card is at a maximum what he paid for the case and would even more likely be determined to be the cost of the case divided by the number of cards in the case.
Commence people telling someone who has a masters degree in taxation that he doesn't know what he's talking about in 3... 2.... 1...
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- #17
Labratt21
New member
justwar said:
HA....that would be interesting if you could refer to it as a gambling loss. Of course if you hit something huge would you report it as a win?
Jays_Cards
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- Jan 1, 2009
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ccouch (Chad) said:
As someone who has a degree in Accounting and who will be sitting for the CPA in 6 months, I concur. :lol:
A_Pharis
Active member
ccouch (Chad) said:
Exactly. Post thanked. And can you even write off losses like that if you aren't filing as a business?
ccouch (Chad) said:
Great explanation, took kind of a douchy turn at the end but whatever.
Also, had a doctor once tell me I had a sprained knee even though I hadnt hurt it, turned out to be lymes disease.
Just Sayin.
