Just reported to IRS, SEC, and Satoshi Tajiri
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You’ll never take me alive
Keep in mind the 28% is the max. If your total income for the year is in a lower tax bracket (say 24%), you pay that % in your collectibles sales. If you’re in a higher tax bracket than 28%, you pay 28% on collectibles.
Wouldn’t only the short-term (less than 1 year of holding) gains be taxed at your personal tax bracket? Any long-term gains would be taxed at the 28% for collectibles?
I thought this too, but in another thread a few months ago I was corrected.
Short term gains are taxed at ordinary income. Long term gains on collectibles are taxed at ordinary income, up to a maximum of 28%. 2020 tax bracket rates are 10, 12, 22, 24, 32, 35, or 37% depending on income level. If you made less than $163,300 in 2020, the upper part of your income would be taxed at 24% and no higher. Thereby, if you made less than $163,300 in 2020, any part of that income that came from collectibles gains, whether short or long gains, would be subject to your ordinary income tax rate, not 28%.
Now, if you are a high earner, say you make $250,000 a year, then the long term capital gains collectible sales would be beneficial to you. Because instead of paying 35% on those sales, you’d only pay 28%. So it’s more advantageous to hold assets/collectibles long term.
The point here being, the IRS doesn’t want to reward short term flippers and wash sale traders who buy and sell immediately or within a single year. For high earners that sell collectibles as short term capital gains, they are stuck with paying their ordinary income tax rate, which can be into the 30’s%.
Main point here being if you are in a lower tax bracket (24% bracket or lower), your collectible sales are simply treated as income, no matter of short or long gains (if you report on Schedule D that is, treating your cards as investments). The 28% rate only really comes into play for the people making high 6 or 7 figures per year.
This is my understanding, but I am not a tax advisor, please confirm this with your CPA or accountant.
Also, this article explains this too:
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Wow, thank god I hoard everything I buy and dont sell anymore cuz I dont know shit about taxes
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VA has the low threshold as well!
Same Same
I did probably around $60-$70k in PP G&S sales this year and don’t see a 1099 for 2020 in my tax document reports. This happen with anyone else?
Over 200 transactions? It’s AND afaik not OR.
200 transactions AND $20,000. This is just for automatic 1099. Below you are still legally required to report to the IRS just they may not.
The tax man comes for us all.
This is my first year getting one from ebay and I didn’t realize that they only store sales data for 90 days… so I’m going to have to sort through pages of scribbled notes to try to figure my numbers out. So that marks one big downside of ebay managed payments if you aren’t aware of it. I can look at everything from previous years of sales on PayPal, but I have nothing from since I switched over to ebay handling the transactions early last year until November.
You can definitely pull detailed reports and export them to .csv files for a lot older than that. I just pulled all of last years for tax filing purposes. Unless that is just because I am a store… but I doubt highly they will make unavailable to you information that you’ll need for tax filing.
Seller Hub>Payments Tab>Reports>Transaction report and select your dates.
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It may be because you have a store. For me it says they are stored for 90 days and to download it regularly if I need to access it further than that. Unless I’m looking in the wrong place. I’ll take another look after work today
@gottaketchumall you were right, I can export the data that way. Thanks a lot - you just saved me a ton of time and headache!
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