New $600 IRS Tax Laws for 2022

Has anyone started thinking about how to sell books in 2022, when eBay and similar sites are required to send out 1099s for sales totalling $600 or more? The limit right now is $20,000, but the last stimulus bill lowered it to only $600. Tax on sale of collectibles is 28%, so I don’t see how selling comics will even be a viable hobby through official channels like eBay after this year.

2 Likes

You always had to report, regardless of whether eBay/PayPal sent something. This law changes nothing!

5 Likes

Been dreading it ever since it was announced as part of the CARES Act. I’ve been hoping that the effective date will be pushed back by at least a year since very few people are actually aware of the changes and we’re still smack in the middle of the pandemic. It’s not a great time to start hitting every day folks even harder in the pocketbook just for selling some tchotchkes on eBay.

Even when they weren’t submitting 1099 and reporting to the IRS, you’re suppose to claim that on your taxes each year as income regardless. Publicly stating that you likely weren’t claiming comic sales as income is just asking for punishment from the IRS if you’re ever audited.

My advice, talk to a tax expert and don’t publicly speak out about how you were likely not paying taxes, it’ll come back to bite you one day if the IRS man cometh knocking.

4 Likes

In this case, you’d be filing as a business, which would allow you to write off all sorts of things to lower your tax liability. Shipping materials, grading fees, transportation, and most importantly, inventory.

Just a cost of doing business that everyone was supposed to be doing anyway. This way it will force more people to report as a business and will probably save them on their taxes at the end of the year because they were able to write off so much more legally.

2 Likes

Inventory costs and supplies will drastically reduce the taxable income for most of us, outside of some of the really big power sellers. And, the power sellers should have been doing this all along, so I don’t know if it changes a ton.

2 Likes

Most people will stop selling anything online in 2 years time all online reseller services like eBay, mercari, Etsy, poshmark, will go the way of the dinosaurs. Comics and Collectables will triple in price which will cause a lot to stop collecting dragging prices down again. I’m really surprised these online resellers companies are not lobbying to change this it’s their nail in the coffin.

2 Likes

What? This makes no sense. The biggest marketplaces in the world are going the way of Sears and JCPenney?

Why in the the world would the cost of comics triple?

That is not how this is going to work. What a wild take.

1 Like

The CHU forum has a lot of old Alana posts that do indicate she is skilled at predicting future price movements of specific comics, always worth evaluating her predictions.

7 Likes

When we say no politics, we mean it. I’ve cleaned up some comments. If you want to talk politics, there’s plenty of other forums and websites to do such a thing.

6 Likes

It’s real simple why are you going to sell your cherished collectible valued at $10,000 at 28% capital gains, 15-20% selling fees you’re looking at giving away your items for half what it’s valued at. So people that continue to sell are going to raise prices to offset this just like they did when sales tax was added to online purchases a couple years back. If I buy a comic for $100 today I pay 4-10% tax on it when purchased, I sell it a year later for $200 after selling fees and capital gains taxes I’ll make a total profit of around $10.

4 Likes

For those that think claiming inventory is going to offset this for them that can only be claimed for one year after purchase and is still taxed not at 28% but whatever your normal rate is for the tax bracket you fall in. If you don’t sell it in a year then your back to paying capital gains at 28% and not just of the profit the whole sale.

2 Likes

I do tend to believe that a massive shift will take place as well. Between the increased shipping prices, risks involved with shipping/delays/etc, increased fraudsters both buying and selling, increased eye on profits/taxes, absurd fees and hoops to jump through anymore.

I personally buy far less from ebay/amazon/mercari than ever (collectibles and such). If I can’t find it or buy it in person at a shop or comic con where I can deal in cash…I don’t really need it that much. Sure, there are some exceptions here and there for me…but generally speaking. I know many that feel the same way.

4 Likes

The 1099k change will hit people hard tax season 2023

4 Likes

I will fully admit that @Alana has been doing this longer and far more successfully than I have been. I don’t sell thousands worth of books each week/month, so this will definitely hit me differently than it’ll hit you (or other power sellers).

1 Like

If we only knew a few smart people with comic knowledge and business know-how to put together a better medium for all involved…

Kevin hit it on the head. So many people aren’t aware of this and come 2023 when people get their 2022 taxes it is going to be a huge mess. There will be news stories with titles like, “He sold some old plates he inherited from his sick grandma on eBay and now he owes money,” or other spicy headlines. Maybe it’ll get pushed back, maybe not, but it’s gonna be crazy.

4 Likes

this, so many ebay and etsy sellers are unaware of changes and will be decimated in feb 2023 when those 1099k roll in. its going to get real bad for alot of people in those places.

2 Likes

I almost wonder if outcry then will result in an, “Amnesty,” of sorts for 2022 and everyone will be told it kicks in for real in 2023. It won’t be canceled because whether it’s Democrats or Republicans in power the government will want that money. That’s not political, just a fact about the World, lol!

irs will never be able to run it all down, there under staffed atm. gonna be a shit show on all sides

2 Likes
Copyright © 2021 ComicsHeatingUp.net - All rights reserved.