Basically what the title says, but the new proposed tax threshold will lower the current existing threshold from $20k and 200 sales to $600 regardless the number of sales.
Relevant part of the article is quoted below as well as the source for the article:
If this passes, it’ll be interesting to say the least.
Already in place in many states, won’t be surprised to see it at the federal level asap as there is so much money they aren’t getting their hands on.
Always finding a new way to screw over the little guy
I can imagine this hurting eBay and TCGPlayer quite a bit.
Good.
As usually needs to be noted in threads like this, you owe taxes on whatever you sell, whether that’s $100, $1000, $10,000, $100,000, you get the point. Just because they’ve lowered the reporting threshold doesn’t mean you now magically need to pay taxes where you were scot free in the past. If you get audited for this past year and didn’t meet the reporting requirements, if you’re running a store with inventory the IRS will still want money.
This also just puts the federal requirements in line with many state laws. Paying taxes always sucks, but I don’t think this will make much of a significant change in the lives of people who were already following the tax law to begin with.
I assume there will be similar exemptions along the lines of “garage sale income” and occasional sales of personal items. In my understanding, if you sell off a couple things from your collection each year the IRS isn’t going to come after you even if you do go over the reporting threshold. But always speak with a local tax professional for your questions.
Yes please.
eBay charging sales tax was amazing.
I just submitted my annual sales tax for last year and didn’t have to utilize a spreadsheet of hundreds of different addresses that I had to manually lookup since each county (and some cities) each have their own tax rate.
It’s crazy how many people would benefit from just doing things the right way but never take the leap to get the proper paperwork and pay their taxes. It’s the patriotic thing to do anyways. Staying apolitical one thing anyone can agree on is they think money should be being spent somewhere… and they can’t spend it if people just evade it all.
Well most people hate paying taxes and it’s obvious why because it means less money to use elsewhere and it creates slimmer margins. I think people that want lower thresholds in place tend to already pay the taxes anyway because they sell so much to begin with.
Personally I pay taxes for the work I do, but I wish hobby sales would be kept separate because it’s not my fault cards became so expensive. Most people would have laughed at paying taxes for cards 10 years ago because profits were so slim it just didn’t matter to most. I just want to be able to sell a card for “x” so I can use that money to buy another card for “x”. So because I want to swap cards, I have to lose money in the process?
Can someone explain how to best file taxes so that does not happen? I feel like there is a way, but I’m not clear on the process and would love to get educated.
Edit: To clarify… lets say I sell a $100 card and then buy a $100 card. When filing taxes, do those break even so no taxes are paid for the sale or do you still have to pay taxes on the $100 gain despite simply buying another card?
Let us see where it goes I guess.
@bdog07,That is what I’m confused about^^^^
I simply want to keep buying cards and collecting, but it would be really disheartening to buy something for 100 bucks and know you can’t simply go buy another card of equal value.
Honestly, I’m just not educated on the matter 100%. If there was a standard across all states I bet it would be easier. What is the best way to truly file your taxes for card sales and purchases?
I’m not a tax expert (so don’t take this as tax/legal advice), but I believe you have three options:
Hobby Income: you report this as additional income on your 1040 (no deductions). This is the easiest method, though likely the most costly to yourself.
Capital Gains (Collectibles): you fill out a capital gains form and pay up-to 28% federal on sales (minus cost basis) plus your state income tax rate on sales. Again, no business deductions . . . only initial cost and shipping/fees can be substracted.
Business Income: you complete a Schedule C documenting your sales and deduct your expenses to determine profit. The only downside here is you are responsible for federal, state, and self-employment taxes, which can easily climb to over 50% of profit before applying deductions.
Which is the fun option? Lol
Please don’t complain here. Send your complaints to the arsewipe politicians in dc.
Watch the slew of Paypal F&F only.
This doesn’t magically exempt you from taxes either 
It sure saved me a TON of money though;)
i’m not worried, i watched the accountant
Private deals for the win.
And also puts your paypal account at risk of getting shutdown
Estate tax
Inheritance tax
Property tax
Sales tax
Payroll tax
Income tax
Excise tax
Corporate tax
There’s 1 for you 19 for me.