Quote:
Originally Posted by pokerplyr80
I would hope that those dealers that are paying income tax are only required to do so on the profit of the sale, not the entire transaction. If the mentioned $1,000 card was purchased for say 800, taxes should only be required on the 200 difference.
|
It would be less than that. You would get the itemized deductions for the cost of the item, cost of the table/booth, travel to the show including gas and tolls, hotel, food and any other ancillary expenses. It is easy to reduce the net profit by taking every deduction allowed. Most dealers are cash flow businesses. With cash flow you get the deduction when you sell the item. You cannot deduct the cost of the item purchased if it is done in a prior year. Don't forget, the I.R.S. encourages tax avoidance. It is tax evasion they don't like.
I have done one or two shows a year max and usually made just a little. At the same time I was also selling on ebay and did declare ALL of the income every year. It is easier to do that than try to play fast and loose.