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Question for people who sales cards.

Hey everyone so what's everyone's take on the new taxs taken place Jan 1 2022 where if you use apps to get paid like cash app you will have to pay taxs on the money you get from $600

Comments

  • NorcalNorcal Posts: 278 ✭✭✭

    I have been wondering the same thing. My dilemma is most cards I sell are cards I bought many years ago and not sure how i would go about taxes on those.

  • kobefan1kobefan1 Posts: 494 ✭✭✭

    @Norcal said:
    I have been wondering the same thing. My dilemma is most cards I sell are cards I bought many years ago and not sure how i would go about taxes on those.

    I heard you get taxes on whatever the card sells for over $600

  • blurryfaceblurryface Posts: 5,136 ✭✭✭✭✭
    edited October 9, 2021 12:02PM

    just wait until folks realize theres a motion on the floor that all transactions of $600+ in and out of your bank account will be reported. the ebay/paypal thing will be moot.

    https://wset.com/news/local/biden-proposal-would-allow-irs-to-track-transactions-over-600

    just posting for 411. remember its a non-political forum

  • GroceryRackPackGroceryRackPack Posts: 3,203 ✭✭✭✭✭

    I do believe that 600$ gig will be in effect.
    My last day I’ll list anything will be December 17th, 2021.
    I have gradually started my fire sale this past September.

  • ringerringer Posts: 342 ✭✭✭

    @kobefan1 said:

    @Norcal said:
    I have been wondering the same thing. My dilemma is most cards I sell are cards I bought many years ago and not sure how i would go about taxes on those.

    I heard you get taxes on whatever the card sells for over $600

    @kobefan1 said:

    @Norcal said:
    I have been wondering the same thing. My dilemma is most cards I sell are cards I bought many years ago and not sure how i would go about taxes on those.

    I heard you get taxes on whatever the card sells for over $600

    Not quite accurate. You will get a tax receipt from the app for sales over $600. You must pay tax on every sale you make regardless of final dale price. What i am uncertain of is whether it is taxed at capital gains rate or your marginal income tax rate.

  • TiborTibor Posts: 3,556 ✭✭✭✭✭

    I see a lot of people setting up at shows selling for cash. I think there are Quick Cash
    places that discount on cashing M.O. There even may be large envelopes of cash being
    sent thru the services. People then stashing their cash at the house.

  • Then leave the country.. Bye

    @ElvisP said:
    This country is slowly going downhill. Socialism is right around the corner I’m afraid. The gubment wants to be all in your business. Privacy be damned.

  • DeutscherGeistDeutscherGeist Posts: 2,990 ✭✭✭✭

    The bottom line is that if you are selling cards, whatever money you are taking in total sales can be taxable. What you do is take your total sales and deduct all of your expenses such as shipping cost, shipping material, storage rental, mileage to go to a show to purchase or even sell the cards, entrance fee to enter a show, price you originally paid for the card, and any other associated business expense. Once you deduct all those expenses from the total sales, the remaining amount is what you are taxed on. This means you have to keep records of what you purchase for your business and sell. If you do not have a receipt of the card you bought 3 years ago for $10, then that is not an expense you can use (if you buy on eBay, you already have proof of purchase).

    So, if eBay, PayPal, or any other venue you use to sell cards reports your incoming revenue to the IRS as a dollar figure, it is something you would be doing anyway if you follow the law. It is now just being enforced better if these new measures take place. The IRS will not see the details of your revenue, like what item you sold or bought, just the monetary transaction.

    Report the income, and do a thorough job of keeping records of your business expenses to minimize the tax liability.

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  • dontippetdontippet Posts: 2,606 ✭✭✭✭

    You're exactly right. This new rule doesn't change anything that we all should have already been doing, paying taxes on our profits. This is nothing new. It surprises me how many people really don't know about this. And that is why there is a new rule.

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  • AANVAANV Posts: 338 ✭✭✭

    @Goldy213 said:
    Then leave the country.. Bye

    @ElvisP said:
    This country is slowly going downhill. Socialism is right around the corner I’m afraid. The gubment wants to be all in your business. Privacy be damned.

    And go where? Switzerland? Cayman Islands?

  • NorcalNorcal Posts: 278 ✭✭✭

    @dontippet said:
    You're exactly right. This new rule doesn't change anything that we all should have already been doing, paying taxes on our profits. This is nothing new. It surprises me how many people really don't know about this. And that is why there is a new rule.

    For me, taxes are nothing new and understand we will always be paying them regardless. I guess for me it just complicates any card sells next year.

    I started Collecting at age 7 and accumulated cards for all these years (I am 43 now) and for most cards I currently have I have no proof of purchase and/or receipts.

    I currently don’t make much after everything said and done but a I am nervous for when I do sell my PC off that I will be stuck with a huge tax bill.

    I will get a CPA then but what a mess it will be proving how much I paid for everything.

  • daltexdaltex Posts: 3,486 ✭✭✭✭✭

    @blurryface said:
    just wait until folks realize theres a motion on the floor that all transactions of $600+ in and out of your bank account will be reported. the ebay/paypal thing will be moot.

    https://wset.com/news/local/biden-proposal-would-allow-irs-to-track-transactions-over-600

    just posting for 411. remember its a non-political forum

    I was under the impression that it was for all accounts that had more than $600 in transactions over the course of a year. I was also under the impression that the White House offered to raise that to $10,000, and that that latter amount would ensnare virtually all people with a job.

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