1099-k forms

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  • lahmejoon
    lahmejoon Posts: 2,019 ✭✭✭✭
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    @Kepper19 said:
    seems those that don't believe taxes should be paid on hobbies, etc, are going to be having third parties sell their cards for them or they are going to sell a lot of their cards at card shows for cash...

    This is definitely already happening. I know a few guys who I would call collector-dealers who obsess about how to circumvent the system. They set up at local shows.

  • lahmejoon
    lahmejoon Posts: 2,019 ✭✭✭✭
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    @82FootballWaxMemorys said:
    $My S-W-A-G:

    $1000 (÷) 42 = $23.80 Cost per card. Profit on the card is $876.20 and the amount you should report. However because you used the word "minty" you legally must report double the amount; $1,752.40

    S-W-A-G stands for a Scientific Wild Arse Guess. It’s a tongue-in-cheek way of saying: “This estimate isn’t really reliable. I pulled it out of my posterior.”

    P.S. Sure glad I don't sell trading cards, stocks are so much simpler.

    LOL, I love the "minty" wrinkle.

    I agree with this method. Alternatively, I could also see it be reasonable that you allocate cost proportionately to the value of the cards you got out of the pack. If you pulled $1,100 in value, and assuming Brett is $900, then the cost allocated to Brett could be $1,000 divided by $1,100, times $900 = $818. In this instance, you have better matching of cost to value, instead of big profit on one card, and then loss on every other card. I think both methods would be acceptable, as long as you use this method consistently with all of your bulk purchases.

  • bgr
    bgr Posts: 4,999 ✭✭✭✭✭
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    I'm sure this was advised by no accountant, ever, as a tax strategy.

  • Groo
    Groo Posts: 312 ✭✭✭
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    I have to agree with the previous posts thst state all who use the word Minty should be taxed at a higher rate

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