Home U.S. Coin Forum

Ebay and 1099-K

13»

Comments

  • derrybderryb Posts: 37,161 ✭✭✭✭✭
    edited May 29, 2023 5:16PM

    @Steven59 said:
    Needing to pay the extra cost of EVERYTHING I thought eBay would be the way to go to help pay my bills SAID the Little Person trying to survive - And once again the little person is screwed.

    income is income and it's all taxable. wanna avoid taxes? have a garage sale and hope an IRS buyer doesn't show up.

    Repetition of ignorance is ignorance raised to the power two.

  • ProofCollectionProofCollection Posts: 6,413 ✭✭✭✭✭

    @derryb said:

    @Steven59 said:
    Needing to pay the extra cost of EVERYTHING I thought eBay would be the way to go to help pay my bills SAID the Little Person trying to survive - And once again the little person is screwed.

    income is income and it's all taxable. wanna avoid taxes? have a garage sale and hope an IRS buyer doesn't show up.

    Not true. Only net income is taxable.

  • derrybderryb Posts: 37,161 ✭✭✭✭✭

    all income is required to be reported. all net income is taxable.

    Repetition of ignorance is ignorance raised to the power two.

  • TrampTramp Posts: 704 ✭✭✭✭✭

    Just remember, tax avoidance is perfectly legal.

    Tax evasion is illegal.

    No rabbit holes. Back to the regularly scheduled program of 1099-K and coin collecting.

    USAF (Ret.) 1985 - 2005. E-4B Aircraft Maintenance Crew Chief and Contracting Officer.
    My current Registry sets:
    ✓ Everyman Mint State Carson City Morgan Dollars (1878 – 1893)
    ✓ Everyman Mint State Lincoln Cents (1909 – 1958)
    ✓ Morgan Dollar GSA Hoard (1878 – 1891)

  • CocoinutCocoinut Posts: 2,512 ✭✭✭✭✭

    I sold coins for a net profit last year, but losses are NOT deductible. The IRS is only interested in any GAINS you had. Being a former accountant, I kept good records and receipts (when I was given one) going back to the late 1960s. I'm sure when the IRS received my return, they thought I was a bit OCD. :D The basic rule is:
    Cost minus any selling costs (grading, listing fees, commissions, postage) = gain or loss, but if you have a loss, remove all information for that coin from your calculations. You must separate short-term (held less than one year) and long-term gains for reporting on IRS Form 8949. If you've sold a large number of coins, you can create a spreadsheet that contains all of the relevant information in the same format as used on the official IRS form 8949 and write on that form "See attached list" and the total of the gain. Finally, the tax rate for long-term gains is higher than for short-term gains. You may need to complete the 28% gain worksheet, and definitely need to use the Schedule D Tax Worksheet. Some of the big auction houses don't send 1099's, but that doesn't mean you don't need to report your gains.

    Countdown to completion of my Mercury Set: 1 coin. My growing Lincoln Set: Finally completed!
  • ProofCollectionProofCollection Posts: 6,413 ✭✭✭✭✭

    @Cocoinut said:
    Finally, the tax rate for long-term gains is higher than for short-term gains.

    I could have sworn it was the other way around.

  • CocoinutCocoinut Posts: 2,512 ✭✭✭✭✭

    @ProofCollection said:

    @Cocoinut said:
    Finally, the tax rate for long-term gains is higher than for short-term gains.

    I could have sworn it was the other way around.

    No, the 28% rate gain worksheet uses long-term gains from Part II of Form 8949. It doesn't necessarily mean you'll be taxed at that rate, but the rate is CAPPED at 28%.

    Countdown to completion of my Mercury Set: 1 coin. My growing Lincoln Set: Finally completed!
  • ProofCollectionProofCollection Posts: 6,413 ✭✭✭✭✭

    @Cocoinut said:

    @ProofCollection said:

    @Cocoinut said:
    Finally, the tax rate for long-term gains is higher than for short-term gains.

    I could have sworn it was the other way around.

    No, the 28% rate gain worksheet uses long-term gains from Part II of Form 8949. It doesn't necessarily mean you'll be taxed at that rate, but the rate is CAPPED at 28%.

    Sorry I was unclear. I was referring to long term rate being higher than short term rate.

  • HoneyMarketHoneyMarket Posts: 806 ✭✭✭✭
    edited May 29, 2023 8:35PM

    @derryb said:

    @Steven59 said:
    Needing to pay the extra cost of EVERYTHING I thought eBay would be the way to go to help pay my bills SAID the Little Person trying to survive - And once again the little person is screwed.

    .... wanna avoid taxes? have a garage sale and hope an IRS buyer doesn't show up.

    I'd like to see an opinion of @jmlanzaf on this comment!

    o:)

    BST references available on request

  • jmlanzafjmlanzaf Posts: 35,140 ✭✭✭✭✭

    @HoneyMarket said:

    @derryb said:

    @Steven59 said:
    Needing to pay the extra cost of EVERYTHING I thought eBay would be the way to go to help pay my bills SAID the Little Person trying to survive - And once again the little person is screwed.

    .... wanna avoid taxes? have a garage sale and hope an IRS buyer doesn't show up.

    I'd like to see an opinion of @jmlanzaf on this comment!

    o:)

    I just want a level playing field. All the tax cheats have an unfair advantage against those who are paying. So garage sale or eBay or FB or a dark alley, just report what you are supposed to report.

  • cagcrispcagcrisp Posts: 1,057 ✭✭✭✭✭
    edited May 30, 2023 5:55AM

    @Cocoinut said:
    . Finally, the tax rate for long-term gains is higher than for short-term gains. You may need to complete the 28% gain worksheet, and definitely need to use the Schedule D Tax Worksheet.

    Long term capital gains rates are Not higher than short term capital gains rates.

    That’s why you separate short term and long term assets…

  • BAJJERFANBAJJERFAN Posts: 31,134 ✭✭✭✭✭

    @derryb said:

    @Steven59 said:
    Needing to pay the extra cost of EVERYTHING I thought eBay would be the way to go to help pay my bills SAID the Little Person trying to survive - And once again the little person is screwed.

    income is income and it's all taxable. wanna avoid taxes? have a garage sale and hope an IRS buyer doesn't show up.

    Why? Are they going to audit you on the spot or take your name and try to flag your return come filing time?

    theknowitalltroll;
  • cagcrispcagcrisp Posts: 1,057 ✭✭✭✭✭

    Just because the maximum tax rate on collectibles is 28% does Not mean that is what you will pay. A Lot can pay 0%. Just depends on your bracket...

  • logger7logger7 Posts: 8,646 ✭✭✭✭✭

    Tax audits collapsed under the last few years. It would be great if we could all operate on the "honor system", but that does not seem to work so well. https://www.dcreport.org/2021/06/26/how-trumps-toothless-irs-let-the-rich-off-easy/

Leave a Comment

BoldItalicStrikethroughOrdered listUnordered list
Emoji
Image
Align leftAlign centerAlign rightToggle HTML viewToggle full pageToggle lights
Drop image/file