The beautiful thing is you can also claim your PC to help lower your taxable income. I use PayPal or tfaw to buy everything, which simplifies the tracking process.
I do contract work so last time I bought a laptop of course it got written off as I make all my money with my laptop being in Devops type of work nowadaysā¦
Sorry, I meant personal collection
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Ohā¦ hahaā¦ see, when I see PC I think of personal computerā¦ 
I thought the same thing, and Iām not a computer nerd like you.
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So for those who will continue to sell online in 2022, what are you doing to keep track of purchases made so that you can balance against your sales?
I make most of my online purchases via paypal, so itāll be easy to compile those purchases at the end of the year, but what about cash buys? Like buying collections or hunting at antique shops, yard sales and flea markets? That will be trickier. Most donāt give receipts and even if they do, theyāre those yellow hand written onesā¦
As long as the deposits (if made into your bank) align with your own records, IRS should have issues. But Iām not a tax specialist so Iād ask them if you really want to make sure youāre good to go.
Get an excel doc started and keep track of your purchases and sales. Keep receipts for things. Itās a bit tedious, but Iāve been doing this all of 2021 knowing my sales would be above thresholds. You get used to doing it.
Itās nice to have records of when/where/cost of books when I sell. Helps me determine profit/loss.
Open a business for $330, get a business checking, run everything through there. Once a year have an accountant do your books. Claim what you can and then have the same accountant do your personal taxes. Listo!
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Mercari sent a notice out doing the $600 thing as well.
Craigslist cash is the only way to go from now on from my end.
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Ditto.
Craiglist, Flea Markets, small cons, and my own garage sales specifically for comics advertised all over the place. Iāll be doing cash only like the dark ages again.
35+ years of comics is not $0 āInventoryā. Nope Nope Nope Nopeā¦ sorry. Thatās just wrong
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I know this has been beaten to death but is the actual tax percentage listed somewhere?
What do you mean by %? Tax percentage is calculated based on what you make, so it can range. Were you just looking for the generic tables they use by chance?
Yeah I was looking for an amount like if I sell 1k worth they take 30% of it.
Well, if thatās all you made all year, then 1k would probably be more like 10% tax bracket but honestly, if thatās all you made, youād probably owe no taxes on such income. Selling things on Mercari and eBay count towards your actual āgrossā income across the board. You need to look at what you made for the entire year, get your ātaxableā income calculated and then you can get a good idea of what your taxes will be based on a %.
Hereās a page that has a quick breakdown of the tax brackets that might be helpful:
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Iām no tax guy (disclaimer upon disclaimer), but here is what Iāve readā¦
So if you donāt want to make this an LLC or other business entity, it seems there are 2 ways to do this:
- Simply add any income from sales as āother incomeā. You will be taxed according to your tax bracket and it is cut and dry.
- Collectibles can be treated similar to stocks using a Schedule D form. In this instance, you will only be taxed on the PROFIT, as you can establish a ābasisā price - Typically what you paid for it plus auction fees, etc. Your selling price minus your basis is what you pay taxes on, at Capital Gains rates. This is a little more time consuming, but may save you money. As of 2018, you cannot deduct hobby expenses, so this would be as close as you can get.
Iām sure it is best to consult with a professional, but perhaps this will help you ask the right questions.
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I had someone make a $300 purchase and cancel yesterday so Iām already half way to a w-9 and didnāt even have a sale so stupid.
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I took down all my online listings on multiple platforms yesterday. Nope Nope Nope. Cash only with local sales. Itās like the internet doesnāt exist anymore for sales for me.
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You are legally required to report even cash sales you do in person, however. Lots of people donāt, of course, but the IRS would like to know. They always want their cut, lol!
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