Thanks for the video. I was afraid this might be coming. I received my 1099 the day after this video was released. I was able to get two reports from Discogs that are the amount of each sale and the detail for each sale. I had to piece them together as many sales were multi[ple LP's. I took the amount collected from PayPal from the report, then subtracted the shipping cost then the fees. For each line item I estimated the cost of the purchase (I sold many VMP's so that was easy as most are $35 and number of them were dogs and I lost money on these). Interesting in my estimates I actually made about 15%.
Oh that’s funny! Well I will say that finding enough legitimate write-offs to significantly reduce my taxable income in the past hasn’t been so hard, but good luck!
one thing good for folks to learn is IRS differentiation on business vs hobby income since expenses can only be deducted for business income. There is good advice available from reputable sources about separating personal and business accounts on selling sites (ebay, etc) to avoid potential issues. Tax treatment for hobby selling is different than business, so better to learn now that wait for that first 1099-K and find out the full amount is counted for taxes.
@seanconlon2408 not saying that just that you should research your situation to understand tax treatment of proceeds. The lower threshold for 1099-K reporting is going to create potential confusion with casual sellers since eBay, payment processors, and others will be reporting an amount to the IRS leaving you to reconcile your actual tax liability.
Yes, and actually I did sign up for a quarterly membership to try it out, so I'll plan to address the club and my thoughts as the titles come in. Thanks!
In Canada, we don't get dinged with automatic tax on sites like Discogs and i'm not a huge seller (under $1000 per year) but i've never seen anything about taxes from used sales from Paypal. I would assume the actual small businesses that operate through Paypal have to go through the tax thing though.
@@67Pepper right, but at least for eBay, you do not have to itemize selling fees because ebay doesn't give them to you before deducting. If I sold a $10 record, and ebay's fee was $2, they only deposit $8 into my account. So you don't need to itemize fees that you didn't receive.
@ Thank you for correcting me on that. I brought up the capital gains issue on one of your previous videos. My tax preparer told me that I had to claim record sales as a capital gains expense, and I'm not a big seller either, but most of my sales were expensive LP's
Thanks for the video. I was afraid this might be coming. I received my 1099 the day after this video was released. I was able to get two reports from Discogs that are the amount of each sale and the detail for each sale. I had to piece them together as many sales were multi[ple LP's. I took the amount collected from PayPal from the report, then subtracted the shipping cost then the fees. For each line item I estimated the cost of the purchase (I sold many VMP's so that was easy as most are $35 and number of them were dogs and I lost money on these). Interesting in my estimates I actually made about 15%.
Oh that’s funny! Well I will say that finding enough legitimate write-offs to significantly reduce my taxable income in the past hasn’t been so hard, but good luck!
@@jazzvinylcollector Hi saw your other message, yes I do owe. More than I expected. Let me know how to connect to talk strategy.
Very helpful video- thanks!
Omg! You’re right about the “gap” in the front teeth. That’s a good ad for Invisalign. Good video🤣🤣👍
Do you play “the Taxman” while thinking about this? The very thought of paying taxes on a used item is so absurd.
The IRS makes their own rules, ever heard of the death tax?
Especially if it’s something you’re selling for a loss or something you traded something for etc
one thing good for folks to learn is IRS differentiation on business vs hobby income since expenses can only be deducted for business income. There is good advice available from reputable sources about separating personal and business accounts on selling sites (ebay, etc) to avoid potential issues. Tax treatment for hobby selling is different than business, so better to learn now that wait for that first 1099-K and find out the full amount is counted for taxes.
Does this mean I can't deduct things like cost of goods or postage?
@seanconlon2408 not saying that just that you should research your situation to understand tax treatment of proceeds. The lower threshold for 1099-K reporting is going to create potential confusion with casual sellers since eBay, payment processors, and others will be reporting an amount to the IRS leaving you to reconcile your actual tax liability.
Off-topic so apologies, are you gonna do a video on the new Verve club announcement? Love your breakdowns on these clubs and their releases.
Yes, and actually I did sign up for a quarterly membership to try it out, so I'll plan to address the club and my thoughts as the titles come in. Thanks!
Do you account for inflation in your purchase price /selling price?
In Canada, we don't get dinged with automatic tax on sites like Discogs and i'm not a huge seller (under $1000 per year) but i've never seen anything about taxes from used sales from Paypal. I would assume the actual small businesses that operate through Paypal have to go through the tax thing though.
So it is state based. So before you do taxes you need to know your own states guidelines.
Yea I want to say the only states that have already adopted lower thresholds are Vermont, Massachusetts, Illinois, Maryland, and Virginia
Is the number eBay provide after they take out their fee for selling?
@@jackfalco5351 yes, eBay will deduct the selling fees before depositing, but not the postage
You have to itemize everything. Fees, postage expenses, packaging, everything separately.
@@67Pepper right, but at least for eBay, you do not have to itemize selling fees because ebay doesn't give them to you before deducting. If I sold a $10 record, and ebay's fee was $2, they only deposit $8 into my account. So you don't need to itemize fees that you didn't receive.
@ Thank you for correcting me on that. I brought up the capital gains issue on one of your previous videos. My tax preparer told me that I had to claim record sales as a capital gains expense, and I'm not a big seller either, but most of my sales were expensive LP's
Yes, I was the one, that pointed it out. That the tax on $600 + in sales was not going into effect.
@@Jamko1970 haha and still hanging around! I appreciate it!