Selling your collection online and tax implications

[cyberpunk12]

Hey everyone... since a lot of us sell statues and collectibles, I was wondering how the rest of you (in the US) are going to handle the new tax rules for 2022.

The way I understand it, once you go over $600 in online payments, you will get a 1099-K and have to report it (American Rescue Plan) in 2023.

I'm reading that Uncle Sam is going to want as much as 28% of the sales, regardless of profit/loss.

I'm no tax expert but I've got to start unloading and it looks like I waited at least a year too late.

I was just wondering how the rest of you are preparing and how I should save enough for the tax man.

Thanks!

[Mister H]

Get paid with cash.

[jeremydmc]

I'm pretty much at the point I will try and sell it at my local comic book shop. If it doesn't sell in a few months I will probably just donate it and write it off on my taxes. I would rather give it away than have to pay taxes yet again if I sell it online.

[Augen]

Originally Posted by jeremydmc

I'm pretty much at the point I will try and sell it at my local comic book shop. If it doesn't sell in a few months I will probably just donate it and write it off on my taxes. I would rather give it away than have to pay taxes yet again if I sell it online.

If I trusted someone on here I'd take the chance they played the long game for years on this forum just to con me out of a statue.

[jeremydmc]

Originally Posted by Augen

If I trusted someone on here I'd take the chance they played the long game for years on this forum just to con me out of a statue.

I have given away a couple statues on here to other members over the years. They were not worth the effort to sell online and they wanted them in their collections more than I did. LOL

[cyberpunk12]

Thanks for the feedback!

I'm in rural South Carolina so my cash options are pretty limited. I've never sold on a Facebook group but if I could, at least ebay wouldn't get me for 12%. If anyone has a group you can recommend, shoot me a PM if we're not allowed to say so openly.

The way it looks, ebay gets ~12%, PayPal ~4, then I'm going to get hit with 28% capital gains tax the following year. Sheesh.

They're taxing us coming and going and I'll bet it only gets worse.

I wonder how many people are selling stuff right now with no idea about the new rules? That could be a heck of a surprise a year from now.

[SDguy]

I have a few questions first:

1. Isn't it just on profit (ie above what you paid for the piece)?
2. Is it by the year, not per statue?
3. Wouldn't the rate be your normal tax rate?

Incidentally, I got one for 2021, which Ebay sent me an email saying was in error (I assume because I neither broke the $20,000 gross or 200 transactions thresholds in 2021). On the right hand side it says "if taxable income results from this transaction". In my case it would be none, since I may have had a couple that resulted in profit, but most did not.

[cyberpunk12]

SDguy... I don't know! Some of what I'm reading sounds like it doesn't matter... and I don't have the receipts for a lot of stuff these days. I've had a lot of my Bowen stuff for twenty years or so and never thought I'd have to document this sort of thing.

I've read that you can deduct some costs but if I can't prove it during an audit, I expect to get the shaft.

I found this online:

• Collectibles are considered alternative investments by the IRS and include things like art, stamps & coins, cards & comics, rare items, antiques, and so on.
  
• If collectibles are sold at a gain, you will be subject to a long-term capital gains tax rate of 28%, if disposed of after more than one year of ownership.
  
• You need to know your cost basis to calculate your taxable gain, and that means the price paid plus any costs, fees, and commissions involved with that purchase.

Collectibles are taxed pretty heavily. The capital gains tax on your net gain from selling a collectible is 28%. You may also be subject to a 3.8% net investment income tax, depending on your adjusted gross income (AGI). Provided you hold the piece for more than one year, you won't pay more than that amount ? even if you're in a high tax bracket. However, this level of tax is considerably higher than the tax rate on most net capital gains, which is an average of 15% for most taxpayers, according to the IRS.

[RPG_FAN128]

Originally Posted by Augen

If I trusted someone on here I'd take the chance they played the long game for years on this forum just to con me out of a statue.

Doh! That was exactly my plan, I've been had.

[Ish3183]

I?m about to sell my XM X-men pieces. eBay worries me with the scam stories I?ve heard but there?s not many options. Would prefer to list here first but doesn?t seem like much activity in the buying/selling forum.