How to claim taxes on collectible sales?

[Mookeylama]

hey when you folks sell statues & figures here or at eBay do you claim taxes? all the time or just over a certain amount.

oh and where do you actually claim them at in the forms? is there a specific section? danke

 

[Devil_666]

Taxes? bahahahahaha..

 

[karamazov80]

Well, yes, I think you are supposed to do that. You are also supposed to pay taxes on anything you buy online that doesn't charge you tax up-front, from what my tax preparer last year was telling me. Not sure if there is a specific form you would need to use, though.

 

[RJMacReady16]

Oh ____. I'm screwed.

 

[Darth Snoopy]

 

[karamazov80]

Problems are gonna pop up when the IRS starts tracking Paypal transactions more closely than they currently do.

"Tax-free" internet spending may soon be a thing of the past.

 

[mmmmBrains]

Oh ____. I'm screwed.

Me and you both.

 

[darthviper107]

Well, yes, I think you are supposed to do that. You are also supposed to pay taxes on anything you buy online that doesn't charge you tax up-front, from what my tax preparer last year was telling me. Not sure if there is a specific form you would need to use, though.

Internet Sales tax is only if you're buying from somewhere in the same state, in which case it's usually already counted.

It'd be retarded to charge tax on stuff you sell online, like reselling collectibles. You paid taxes on that stuff already, why do it again? (of course I realize the government wants all your money, but still)

 

[c3r1h5]

From what I can remember from my CPA book, you're supposed to include any gains as income from the sale of personal goods (which you'll obviously get taxed on). However, generally you can't report any loss from the sale of personal goods because they are considered a "consumption loss".

You could probably report the gains as other income and then get taxed on the income.

I really like the fact that the Government wants people to report illegal drug income (net of COGS of course), but that's another topic.

 

[devilof76]

Internet Sales tax is only if you're buying from somewhere in the same state, in which case it's usually already counted.

Maine charges Use Tax on products purchased out of state. They figure they should be getting sales tax from it, but it's not enforcable (they do bait occaisionally with amnesties for people who don't pay it). Massachusetts tried to force New Hampshire businesses to collect sales tax from Mass. residents a few years ago and NH told them where to shove it.

 

[Mr. EcKo]

thats true , when i buy from Toy Anxiety (Arizona)(online) no taxes


when i buy from Tony's Toys (online) in Massachusetts

i live in Taxachusetts , i get taxed on it

 

[Sweet Rabbit]

Taxes? bahahahahaha..

 

[Nitro]

thats true , when i buy from Toy Anxiety (Arizona)(online) no taxes


when i buy from Tony's Toys (online) in Massachusetts

i live in Taxachusetts , i get taxed on it

What makes it worse is the tax increase you guys got (from what 5% to 6.25%. Be happy you haven't hit the 7% that we have here in Rhode Island.

 

[karamazov80]

It'd be retarded to charge tax on stuff you sell online, like reselling collectibles. You paid taxes on that stuff already, why do it again? (of course I realize the government wants all your money, but still)

Like c3 says, it's income. And you're supposed to report any of that from my understanding. When you pay taxes to a retailer, they are passing the buck to you, but ultimately they are paying those taxes to the feds. If someone pays you for something, then you are still responsible for income tax as they are. It's just that collectors and eBay sellers usually don't charge tax to those buying from them.

So, in a de facto way, many of us end up paying taxes twice (or would if we properly reported this info. to the IRS). But if we added tax costs to our forum and internet sales, then we wouldn't have to do this.

 

[jye318]

I brought many toys from sdcc last year, I also paid tax too, do I have to file tax this year if I sold them all on eBay? I have purchase more statues this year , only sold 2.

 

[78Myers]

My scalping does not get taxed... pocket mullaaah!

 

[user 1190]

This only applies to the US

If you sell items as an individual (not as business) you are not required to collect or collect sales tax. If you sell your items without making money that is not taxable. However if the item has appreciated (you made money) you are legally required to report that income. I don't many people who do this however if they really looked into it you could have an issue.

 

[galactiboy]

On Turbotax there was a specific section asking about items bought on-line that no taxes were paid for. I can't recall if this was in the federal or state section, but evidently if you were totally honest (ie an idiot) you would need to pay taxes on them.

I think the same thing also applies for sales. As was said earlier though the IRS doesn't seem to check these things, and Paypal does not appear to report it so I think its currently a non-issue for people buying and selling on a small scale (ie not the majority of your income going out or coming in).

 

[user 1190]

On Turbotax there was a specific section asking about items bought on-line that no taxes were paid for. I can't recall if this was in the federal or state section, but evidently if you were totally honest (ie an idiot) you would need to pay taxes on them.

I think the same thing also applies for sales. As was said earlier though the IRS doesn't seem to check these things, and Paypal does not appear to report it so I think its currently a non-issue for people buying and selling on a small scale (ie not the majority of your income going out or coming in).

The usage tax would be state tax. There is no federal sales tax (except on tanning services) and usage tax is same as sales tax.

 

[Darth Cruel]

If I remember correctly, ebay now reports your ebay sales to the IRS at a certain point. I believe it is 20,000 dollars or 200 sales in a year, but don't quote me on that.

I know a scalper at Frank-n-Sons Collectibles show here in SoCal that ended up neck deep in trouble with Uncle Sam for not paying taxes on the stuff he sold.

I just verified it. In 2012 (for the 2011 tax year) ebay/paypal will be reporting to the IRS at 20,000 dollars or 200 payments to you.