Starting an Ebay Business

Aquarian Sports Cards · #1 03-23-2021, 03:56 PM

Quote:

Originally Posted by Gusturd

This is something else I've been pondering quite a bit lately. My goal here is to simply realize as much money for my collection as I legally can. But quitting the hobby cold turkey seems a little too extreme at this point (to me...not my wife. She's 100% ready for me to sell). I figure piecing it out, would be a gentler exit, allowing me to downsize and free up some of the money, while not quitting overnight.

We've always viewed this collection as a means to someday enjoy retirement, travel, etc...so I'd like to choose the route that benefits us and that goal the most.

Problem is you just said two different things as goals.

1. Do it gradually and enjoy the process.

2. Sell it as a means to raise money and enjoy retirement.

There's a time value to money. The same reason the lottery offers you more if you take your win over time applies here. Again to use your round numbers $100,000 today is worth a lot more than $10,000/year for 10 years.

Gusturd · #2 03-23-2021, 05:28 PM

Quote:

Originally Posted by Aquarian Sports Cards

Problem is you just said two different things as goals.

1. Do it gradually and enjoy the process.

2. Sell it as a means to raise money and enjoy retirement.

There's a time value to money. The same reason the lottery offers you more if you take your win over time applies here. Again to use your round numbers $100,000 today is worth a lot more than $10,000/year for 10 years.

I see what you're saying and have considered that as well. I don't think either approach checks every box. I'm just trying to figure out which one checks the most.

I guess the unanswered question for me is, can you sell for 10 years making 10K per year without the IRS saying hey wait a minute...You're a business. I don't know if they're as concerned about that scenario. At the end of the day, isn't the hobbyist paying higher taxes than a business would (assuming equal sales)?

If that's the case and if the net result (ie net gain) of one over the other is relatively close, but one saves me a lot of additional record keeping, then I guess I'll have my answer.

Aplyon86 · #3 03-24-2021, 05:43 PM

Quote:

Originally Posted by Aquarian Sports Cards

Problem is you just said two different things as goals.

1. Do it gradually and enjoy the process.

2. Sell it as a means to raise money and enjoy retirement.

There's a time value to money. The same reason the lottery offers you more if you take your win over time applies here. Again to use your round numbers $100,000 today is worth a lot more than $10,000/year for 10 years.

Somewhat of an easy question to ask to help you decide. Do you think your collection will appreciate more or less than whatever portfolio allocation you'll put this into. As everyone has also said, even if your collection grows more, the taxes could be more, too, which could net to less.

Also consider how un-diversified your nest egg could potentially be by not selling if your collection makes up a material portion of your retirement. Nonethess, enjoy your retirement!!!

Sent from my SM-G991U using Tapatalk

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