I think it will be kinda fun going back to the dark ages of selling stuff outside one’s own door and/or renting a table at a local con. Exchanging green paper. And advertising on Craigslist! - there’s an oldie but goodie.
Sell $599 and close up the scotch tape, gemini, cardboard, & peanut (not cashew) shop for a year. - I like it!
Correct me if I am wrong but for small sellers like me, we are still talking about a profit right ? I mean the higher tax reduces your margin, but you are still making a profit overall (assuming its not all losses which I could claim).
I am a little skittish about Craiglist, etc. as I hear all these horrible stories about in-person transactions. I know its not the norm but still …
Us small sellers can make a profit, even big sellers. We just need to keep an extremely close eye on our funds and make sure we have saved what will be needed come tax time to cover what we owe.
eBay and Etsy are considered resale marketplaces, like online garage sales, so that has been why the 1099 reporting has been at $20k. Your average hobbyist seller, who may gross $5-10k a year by selling a handful of books that heat up, are not going to go through the hassle of reporting the sales and paying the taxes.
Here’s a question… if you buy a raw book for $500, press and grade it, hold it for 2 years, and then sell it on eBay for $1000, what would you make after paying 28% in taxes, 13% in selling fees, and 3-5% in shipping and insurance? eBay is reporting $1000 in sales, so are you taxed on that amount, or are you able to subtract your original investment from 2 years prior? Even so, is the hassle of keeping track of everything worth the reduced amount you’re going to make?
We all know your supposed to report every penny, regardless of a 1099 being issued, so it doesn’t need to be rehashed. The fact is that the average person isn’t reporting it, just like the the average person isn’t voluntarily paying taxes on out of state online purchases. I do think this will affect eBay sales, as well as inventory, because a lot of people would rather not deal with the reporting requirements.
Anyways, I was curious what everyone’s thoughts were on the topic, so although I apologize for hijacking the wrong thread, I appreciate your input.
So, eBay reports the total of the sale, so if it was $1000, with free shipping, and you file your taxes, eBay would report the $1000 a income, but you would subtract off the cost of the book and the shipping/supplies/gas to drive to the post office, fees, and what ever else, as your profit.
So in your situation, eBay reports $1000 income, you deduct, $500 cost, $32 grading fee, $15 press fee, $12 shipping to cgc, $130 in fees to eBay, $15 shipping to buyer. So you would pay income tax on $296, let’s say 20% which would be $59.20. You still have the $1000 in your pocket, but are only paying on your actual profit as the rest is expenses. Also, consult your tax expert as rules and laws vary by state.
Cgc forum and other online trading selling forums will be where the action is, but eventually the Gov will come after sending money friends and family next. Back to Sunday swap meets to buy and sale comics lol.
Thank you for the clarification.
I found this on Investopedia, which says that collectibles that are held over 1 year are subject to a 28% tax. I wonder if eBay’s IRS reporting categorizes your sales, or if it is inherent on you to track and break out collectible sales vs non-collectible sales.
I just need to make enough to cover my next comic purchase 
No they don’t. There is, from my understanding, a .001% chance (1 in 10,000) of contracting covid from touching a surface. It’s almost 100% airborne transmission, from the current data.
You do have to keep records of the original cost + other fees (Ebay fees, shipping etc.) right ?
There will be two ways of filing your taxes for the selling comics. Either as a collectible capital gain or filing as a business. The days of selling an item you picked up at a garage sale to earn a couple of bucks are over. You will now have to keep records in case you get audited. Just make sure you keep a note book to record all your transactions.
Would foreigners like myself be required to file any of the US tax returns if I sell on ebay.com? I would imagine that I would not have to?
That’s what I was thinking why not just set up my eBay account in Dubai 
No. Likely falls to your own local laws. See a tax professional.
Doesn’t work quite like that if you’re an American citizen.
Yeah. I think if covid lived longer on surfaces, we would have seen much higher cases and people getting sick, even early on. You see most of the new cases all being traced back to big parties where people were in close proximity to each other (basically breathing on each other) and being turds.
They are and aren’t like garage sales though. What first started out (eBay) as an easy way to widen your audience in selling stuff instead of doing a garage sale that’s limited to just those who can show up to your house has now turned the platforms into more and that’s a reason why these places have to report your sales to the IRS, because let’s be honest with ourselves, everyone on eBay for the most part is now buying low, selling high.
Etsy wasn’t ever a garage sale type of platform in my opinion, it’s always been a way for creators/artists to sell their work, not resell old stuff they bought at premium and selling at a loss. So everyone on etsy should be reporting income for the most part.
The reason the IRS doesn’t care about people having 1 or 2 garage/yard sales a year is they know they’re selling off stuff at a loss. IRS doesn’t care about the computer you’re selling for $25 that you bought for $500 8 years ago, etc. Now if you started going out and buying broke down furniture and items for cheap to turn around and profit, throwing a sale each weekend, then yes, you need to report your sales since it’s now you making regular income from it.
So every situation is different to each person, the best thing to do is just talk to a tax professional and take all the advice you read from strangers on the internet with a grain of salt. 
Looks like we international sellers are going to have the market all to ourselves. 
I just buy everything through PayPal or tfaw then add up all the money spent during the tax year. eBay totals all the shipping and seller fees. Total all that stuff together and subtract from the gross. I should be taxed on the difference. What will hurt is when you stop buying and sell only. 28% of the total gross will really suck.
Looks like I’m switching to Mercari then. I occasionally sell stuff once in a while .I might sell local from now on.
