Thoughts on 1099-K threshold being lowered and how it will affect the market? 1 1

[Darkwing7869]

In case you are not aware, within the most recent US Stimulus Package, there is a section that mandates all third party payment systems (PayPal, eBay, Venmo, etc) send the IRS a 1099 form whenever a seller receives a total of $600 or more for an entire calendar year. This is down from the current threshold of $20,000. However you feel about taxes and the Federal government and I am neither confirming nor condoning such actions, I am fairly certain the majority of us comic book collectors who occasionally sell books either on here or on other platforms don't see the relatively small amount of money we receive from selling as "income" and therefore completely ignore it when it comes to tax season. Most of us never come close to the 20k threshold over the coarse of the year, but 600 dollars could end up being just a single book. I'm curious as to the community's thoughts on the matter and whether it will affect your future exchanges. Do we go back to the days of only accepting checks or money orders through the mail and hide from online transactions entirely?

[Robot Man]

That’s a heck of a difference. Somebody has to pay for that stimulus check you will be getting. There is no such thing as free money. 

I suspect there will be a whole lot more cash, check and money order transactions coming up...

[Tnexus]

Kinda already discussed here.

 

[Black Bat]

start adding 33% to all prices...

 

[snitzer]

(say it so those in the back can hear ya) There is no such thing as free money. 

[xvipah]

Yea, government gonna get theirs. So it's either "under the table" or raise prices. As if the prices weren't already skyrocketing over the past year or so.

[NewWorldOrder]

10 hours ago, Darkwing7869 said:

In case you are not aware, within the most recent US Stimulus Package, there is a section that mandates all third party payment systems (PayPal, eBay, Venmo, etc) send the IRS a 1099 form whenever a seller receives a total of $600 or more for an entire calendar year. This is down from the current threshold of $20,000. However you feel about taxes and the Federal government and I am neither confirming nor condoning such actions, I am fairly certain the majority of us comic book collectors who occasionally sell books either on here or on other platforms don't see the relatively small amount of money we receive from selling as "income" and therefore completely ignore it when it comes to tax season. Most of us never come close to the 20k threshold over the coarse of the year, but 600 dollars could end up being just a single book. I'm curious as to the community's thoughts on the matter and whether it will affect your future exchanges. Do we go back to the days of only accepting checks or money orders through the mail and hide from online transactions entirely?

If you make a $1.00 USA gov't wants their cut.  Who cares if its $600 or 20k

You are supposed to declare all income.  So in 2020 if you sold $1000 worth of comics and $600 of that $1000 was profit then yes you are supposed to declare that $600 and pay income taxes on it.  By your logic you are thinking anything under 20K was free money .   Lets say for the past 5 years you made 10k each of those years, you should have declared that 10k each year and yes you could be audited by IRS and pay back taxes on that 50k.

This topic is nothing new, if you make money you technically owe the US gov't a cut.  Now by you selling a $600 comic book will they care? Prob not.  

I am a Libertarian meaning I want as little taxes & govt control as possible, but what you are up and arms about little isnt something new what so ever.

Edited March 14, 2021 by NewWorldOrder

[Buzzetta]

2 hours ago, NewWorldOrder said:

If you make a $1.00 USA gov't wants their cut.  Who cares if its $600 or 20k

You are supposed to declare all income.  So in 2020 if you sold $1000 worth of comics and $600 of that $1000 was profit then yes you are supposed to declare that $600 and pay income taxes on it.  By your logic you are thinking anything under 20K was free money .   Lets say for the past 5 years you made 10k each of those years, you should have declared that 10k each year and yes you could be audited by IRS and pay back taxes on that 50k.

This topic is nothing new, if you make money you technically owe the US gov't a cut.  Now by you selling a $600 comic book will they care? Prob not.  

I am a Libertarian meaning I want as little taxes & govt control as possible, but what you are up and arms about little isnt something new what so ever.

That’s not what he said.  Perhaps you should reread.  He said that regardless of how or what anyone was doing how will this impact the market.   He was not debating it.

Personally I see a severe drop of usage on eBay starting in April of 2023 once people file their 2022 taxes and say it’s not worth dealing with a lot of this anymore.  
 

People will start “dumping” collections to dealers but only with the idea of receiving cash in hand. 
 

Some things will be simply donated to charity like golf clubs or old clothes to avoid dealing with it all together.  I will imagine it will be harder to find things like legos from a bulk collection because moms will donate them or ... I’m horrified to say this... throw it out.  
 

however... expect to see a lot more local garage sales and tag sales.  Expect a lot more in hand trading and selling. 
 

Edit

Also  people people to be severely more selective with what they buy.  There will be a decrease in sales across the board.  I see quite a few people buying a lower grade condition item until they find the higher grade copy they want.  Trading upward will be a little more complicated than previously believed.  The flippers will take a step back.  This may drive prices downward. 
 

Again though, I see Facebook local sales and Nextdoor market place pickups  increasing... I also see a lot more theft, manipulation and violent crime increasing.  Some fool is going to try and offload a $2000 NM 98 CGC 9.8 or a pair of Jordans... and someone is going to try and rob him.  
 

I want to see how it all plays out.

 

Edited March 14, 2021 by Buzzetta

[rjpb]

I sell enough that I've declared my comic income for several years already, even though I've managed to always just fall under the 200 transactions level on both ebay and paypal, and have yet to get a 1099K. The added bookkeeping is a bit of a pain, as is of course the tax bite, but I also have a state resellers permit, which saves me paying CA sales tax on books I'm flipping, so that helps with the margins. 

The upside is so many people will now be getting 1099s, that the IRS is unlikely to look into net profit declarations of small time sellers, so I wouldn't sweat not having receipts for purchases made years ago. Meanwhile sell off the boxes of drek you've accumulated, locally, and write off the losses against any profit you made.

This probably will result in more sales moving to social media platforms, especially when combined with the constant fee increases on ebay. The 12.3% they now charge sellers for sales tax they collect being the latest bite, which adds another 1% or more to selling fees over all when you sell to buyers in higher sales tax zip codes. 

 

[the blob]

14 hours ago, Black Bat said:

start adding 33% to all prices...

 

pretty much every reasonably big seller is already reporting this income, after offsetting it with a huge number of legitimate deductions. of course. 

[the blob]

this is at least the third thread on this topic. we beat the horse to death. and then a bit more.