Yes. It can be faxed multiple times. For example, I buy a lego set for $100, I pay $106 after sales tax. When I sell it for $200, I pay tax on the gains of $94. I invest that money into a stock which earns capital gains that are taxable. And when I die the money is taxes again at inheritance.
1 Like
If you are going that route make sure you have a business set up. Using your house as an office you can write off part of your mortgage payment and other expenses. I don’t know the recent laws. But it was based on percentage of the house. Say you room is 500 sq feet and the house is 2000 sq feet. Then is would be 25% expense. This will effect you too if or when you sell your house though.
And someone pays sales tax on the $200 too.
1 Like
I’d love to see this post too!
The poster was Mike_C that provided great info on the process, that is all I could remember.
Just reading through this entire thread gives me stress. Big time stress.
I do not want the headache of starting an LLC and I do not want the stress of potential audits in the future (just being straightforward honest here with both). So a decision looms for me.
I’m a little guy that is probably at a few grand profit a year on Ebay; and from what I read I seem to be at risk.
If all this discussion is a reality, I can only say I’ll have to take my sales to Craigslist and Yard/Garage Sales. Those are not traceable and are supportive of little guys. Even FB & Instagram show up at electronic transactions and that is (from what I"m reading) not good as it is traceable
2 Likes
Besides the article posted here about he tax changes, I can’t find anything else written about this. Was this even included in the final draft of the Covid Bill?
2 Likes
Unless you’re using a significant portion of your home for storage it’s probably not worth the headache of doing everything needed for deducting home office space.
But if you want to, all the info you need can be found on Publication 587 (2020), Business Use of Your Home | Internal Revenue Service
3 Likes
My accountant told me the thing that gets people audited more times than not is claiming home office space. Now I have 1/6th of the house’s space As my office. 1/6th is a big space. He said you claim that you will probably trigger an audit. But in fact the Comics I own occupy 1/6th of the house’s space. My desk and shipping station are down here. I do my videos from down here. And I write my Chu articles down here.
3 Likes
Yup. I was once going to claim part of my garage as home office when I was spending most of my time packing up books I sold. Software went from “very low audit” to “high risk audit” so I backed it out and didn’t bother. Plus the reduction didn’t make all that bit of difference for me.
2 Likes
Yep, same thing here-told by two accountants that home office is a good way to get audited. In all the years I’ve been self-employed, I’ve never wrote it off. It wasn’t worth much of a reduction anyways.
As far as sales tax-they get you to pay sales tax when you buy, then you sell it on ebay and they charge that person sales tax as well…if he sells it, that person will pay sales tax as well. I really got to figure out a way to use that kind of business model :P.
1 Like
Can someone explain what exactly an LLC is and why we would be one to sell comics?
They’re pushing for a cashless society because if they can trace everything they ensure they get their cut. This is more machevellian mafioso crap that our “representatives” are pulling.
They’re also pushing for $15/he because it is anticompetitive and reduces the amount of little guys out there. Then, the big corporations like Wal-Mart, Amazon, etc who line the pockets of our “representatives” get even bigger. Meanwhile the big billion dollar corporations get tax cuts, breaks, incentives, and make special deals on the side.
It’s a Technocracy mixed with corporate cronyism. It’s like centralized capitalism… sort of. Technocronyism?
7 Likes
Watch “City of Fear” on Netflix. That’s the business model. Everything flows upward to the Boss.
It’s a Limited Liability Company (it’s just a type of corporate legal entity). Larger corporations are usually S or C corps while small businesses are usually LLC’s.
Best way to think about it is it’s simply a business entity and removes any personal legal risk and recourse from you and your family. If someone sues you they can only sue the entity for its assets (not your house and family). There are also more favorable deductions and tax rates for business entities opposed to using your own personal tax rate.
Hope that helps.
3 Likes
I have operated 2 different businesses but only filed a dba with the state (necessary for busines checking account listing the busines name). A LLC could provide liability protection but courts can remove that protection if there is too much mixing of personal/business. Not sure of the liability for a comic dealer worthy of forming a LLC.
1 Like
As mentioned earlier, I can help and can give a CHU fam discount (if allowed). But this is a convo via PM / DM / Phone / Email.
I can back up my degrees and experience, but doesn’t happen in the open forums.
1 Like
I’ve started several LLC’s of my own, and for others. This still goes to my previous comments. I cannot, nor will not, provide any tax advice in a public forum that I am not engaged to do so.
Credentials and experience can be provided, but with the profession I am in, I cannot, nor will not, provide such advice due to I cannot based on such rules /regulations / etc.
just list everything you buy for yourself for 20x the going rate that way you can say it’s inventory if it sales even better.
This is only partially correct. As a CHU Family Member, I’d recommend not posting comments on these types of questions / topics. Not an Admin of the site, but I will openly tell you that providing tax advice, can, and will, eventually bite you in the ass if somebody uses said advice.
Worried about an audit, imagine if somebody is audited and utilizes your “expertise” / “advice” as the support on why they did something.
Not saying don’t help people, I’m just warning people on the risks of what some people might have posted, or are thinking about posting.
2 Likes