Starting an Ebay Business

[Gusturd]

Originally Posted by RL

do not try to avoid the IRS. they will catch you eventually

Thanks for the sound advice, but at no point did I or anyone responding imply that was the intent. The goal here is to make sense of the options I have before me. I've been a collector most of my life. Now I'm just trying to figure out how you go about getting rid of it legally while maximizing the value of your collection. People always get squirrely when this topic is brought up. Makes it very hard find useful information.

[RL]

Originally Posted by Gusturd

Thanks for the sound advice, but at no point did I or anyone responding imply that was the intent. The goal here is to make sense of the options I have before me. I've been a collector most of my life. Now I'm just trying to figure out how you go about getting rid of it legally while maximizing the value of your collection. People always get squirrely when this topic is brought up. Makes it very hard find useful information.

No way I took it as you were trying to beat IRS. I do apologize that you may have taken it that way.

All payment processors issue a 1099k and report to IRS when certain thresholds are met. Some people mistakenly think if they did not get a 1099k they are exempt from claiming the income.

If you decide you want to be a business seller instead of a hobby seller, register as a sole-proprietor or a LLC, and you can use schedule C when you file your tax's. Lots of things you can write off. Hobby sellers can not file a schedule C.

Whatever way you go, good luck with your venture.

[Leon]

Originally Posted by Gusturd

Thanks for the sound advice, but at no point did I or anyone responding imply that was the intent. The goal here is to make sense of the options I have before me. I've been a collector most of my life. Now I'm just trying to figure out how you go about getting rid of it legally while maximizing the value of your collection. People always get squirrely when this topic is brought up. Makes it very hard find useful information.

When I sold my first collection 5 yrs ago, after collecting it for around 20 yrs, I had a cost basis for each card. I then gave that and the final tally sheet from the AH I consigned it to, to my CPA. He did the rest. It was easy.
.

[Gusturd]

Originally Posted by Leon

When I sold my first collection 5 yrs ago, after collecting it for around 20 yrs, I had a cost basis for each card. I then gave that and the final tally sheet from the AH I consigned it to, to my CPA. He did the rest. It was easy.
.

That does sound easy, but I believe the rules have changed within the last 3 years. Would your cost basis be the same today?

[chalupacollects]

If your state has the option, set up the business as an LLC. That way you can net out your expenses, profit and losses and your profit would be taxed as part of your regular income so your gains would be taxed at your normal 1040 rate. No capital gains to deal with... depends on your state though.

[buymycards]

You Tube has many tutorials for eBay start ups and for eBay updates. I have been selling on eBay since 1998 and I still try to watch an hour or two of YouTube tutorials every week to stay current and to learn new techniques.

[birdman42]

Originally Posted by chalupacollects

If your state has the option, set up the business as an LLC. That way you can net out your expenses, profit and losses and your profit would be taxed as part of your regular income so your gains would be taxed at your normal 1040 rate. No capital gains to deal with... depends on your state though.

An LLC is a state entity. It has little to do with how your income gets reported. Here in Maryland forming an LLC means that you now have to file a personal property return each year, which has a filing fee of $300 in addition to the burden of preparing it.

When it comes to establishing whether you're a business or a hobby, having the LLC status is a point in your favor. But so are business cards, advertising, and regular activity.

I deal with sole proprietors who are LLCs, but also S-corporations.

Bill

[SAllen2556]

Have you considered just setting up a table at a local card show? If I was liquidating, this is the first thing I would try. All cash. No receipts. No IRS this or that. My only expense is the cost of the table. And it would probably be pretty fun.

[Gusturd]

Originally Posted by SAllen2556

Have you considered just setting up a table at a local card show? If I was liquidating, this is the first thing I would try. All cash. No receipts. No IRS this or that. My only expense is the cost of the table. And it would probably be pretty fun.

I have given that some thought. Can anyone rent a table at a typical show or do you have to be registered as a dealer?