OT But probably affects most on this board

[Exhibitman]

Let me tell you how it will be,
There’s one for you, nineteen for me,
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
Should five per cent appear too small,
Be thankful I don’t take it all,
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat,
If you get too cold, I I’ll tax the heat,
If you take a walk, I’ll tax your feet.
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
Don’t ask me what I want it for
If you don’t want to pay some more
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
Now my advice for those who die,
Declare the pennies on your eyes,
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
And you’re working for no-one but me.

The brilliance of the Beatles aside as a general point, there really isn't an issue here if you run your card business as a proper business already. Honestly, the whining over the government creating a reporting mechanism that does no more than allow it to be sure that every business is complying with the tax laws is ridiculous. If being 'forced' to comply with the same tax laws as everyone else who runs a business is just too much for you, get out of the business. Otherwise, man up and be responsible businesspeople.

[ChiefBenderForever]

Just wondering how it is going to affect all the laundering/loop hole cash shenanigans going on, baseball cards are a tiny percent of their business. I don't see how ebay and paypal don't lose millions next year unless thousands of people are ready to go to jail. It doesn't affect me at all but very interesting to see what the outcome will be. Ebay stock at 29.90 a share right now, let's see what it is a year from now.

[Jim VB]

Originally Posted by JohnnyHarmonica

Just wondering how it is going to affect all the laundering/loop hole cash shenanigans going on, baseball cards are a tiny percent of their business. I don't see how ebay and paypal don't lose millions next year unless thousands of people are ready to go to jail. It doesn't affect me at all but very interesting to see what the outcome will be. Ebay stock at 29.90 a share right now, let's see what it is a year from now.

The "laundering/loop hole cash shenanigans" are treated exactly the same way as any other purchase. They count as one transaction and whatever dollar amout they are for.

Unless people go back to writing checks (which Ebay has made challenging, because they won't let you say you except them), Ebay will be fine.

[ChiefBenderForever]

But what about the people who have been selling hundreds of thousands of dollars of goods under the radar ? They either have to get multiple accts or limit themselves to sales or report income. We are talking about millions of dollars here. So less sales will equal less revenue for ebay. My unprofessional advice would be to sell ebay stock soon but I am no expert and really don't know anything, I guess time will tell.

[teetwoohsix]

Originally Posted by JohnnyHarmonica

But what about the people who have been selling hundreds of thousands of dollars of goods under the radar ? They either have to get multiple accts or limit themselves to sales or report income. We are talking about millions of dollars here. So less sales will equal less revenue for ebay. My unprofessional advice would be to sell ebay stock soon but I am no expert and really don't know anything, I guess time will tell.

Or stop selling on ebay

[Jim VB]

Originally Posted by JohnnyHarmonica

But what about the people who have been selling hundreds of thousands of dollars of goods under the radar ? They either have to get multiple accts or limit themselves to sales or report income. We are talking about millions of dollars here. So less sales will equal less revenue for ebay. My unprofessional advice would be to sell ebay stock soon but I am no expert and really don't know anything, I guess time will tell.

Multiple accounts won't help. Anyone who Ebay determines may be close to the limit will be asked to supply Ebay/Paypal with a Social Security Number (or an EIN, for a business.) Multiple accounts will be liknked to either your specific SSN or your EIN.

Yes, I suppose that some sellers could stop selling on Ebay, but other avenues to sell through are just as easy for the information to be tracked (unless you think there will be a resurgence of weekly card shows.) Other, large auction houses will be next. Any credit card sales are already tracked, through the bank.

I would never advise anyone concerned about paying profits on taxes that the solution is to do less sales. I do wish they would all pay the required taxes on their profits.

[Dan Carson]

If Meg was in office this wouldn't happen!

[Exhibitman]

Originally Posted by Dan Carson

If Meg was in office this wouldn't happen!

Uh, yes it would. The law in question is Federal, not state, and passed in 2008, signed into law by George W. Bush.

[BleedinBlue]

...and how it affects my situation.

This year I decided to liquidate a fair number of cards for various reasons including space, change in collecting focus and finances. I've still got a ways to go on this clean-up which will roll into 2011. In my case I am selling cards which I have purchased over the last 30+ years and held in my personal collection. I don't have records on what I paid for each card except for those purchased in the last 4 years. How so I report "profits" when I don't know purchase price? Given that some of these cards have greatly appreciated but some have also drastically depreciated, where does that leave me from a reporting standpoint? At this point I plan on selling less. I'm not in business, I'm just trying to thin my collection. And I did expect to sell more than $20k in 2011. Certainly I planned on selling more than 200 items.

[Leon]

Originally Posted by BleedinBlue

...and how it affects my situation.

This year I decided to liquidate a fair number of cards for various reasons including space, change in collecting focus and finances. I've still got a ways to go on this clean-up which will roll into 2011. In my case I am selling cards which I have purchased over the last 30+ years and held in my personal collection. I don't have records on what I paid for each card except for those purchased in the last 4 years. How so I report "profits" when I don't know purchase price? Given that some of these cards have greatly appreciated but some have also drastically depreciated, where does that leave me from a reporting standpoint? At this point I plan on selling less. I'm not in business, I'm just trying to thin my collection. And I did expect to sell more than $20k in 2011. Certainly I planned on selling more than 200 items.

Unfortunately, I believe the rule is that if you can't prove a cost basis, to support your net profit/loss, then the cost basis is 0. I have done that with some cards when I didn't have the necessary back up.

[Jim VB]

Originally Posted by BleedinBlue

...and how it affects my situation.

This year I decided to liquidate a fair number of cards for various reasons including space, change in collecting focus and finances. I've still got a ways to go on this clean-up which will roll into 2011. In my case I am selling cards which I have purchased over the last 30+ years and held in my personal collection. I don't have records on what I paid for each card except for those purchased in the last 4 years. How so I report "profits" when I don't know purchase price? Given that some of these cards have greatly appreciated but some have also drastically depreciated, where does that leave me from a reporting standpoint? At this point I plan on selling less. I'm not in business, I'm just trying to thin my collection. And I did expect to sell more than $20k in 2011. Certainly I planned on selling more than 200 items.

My first advice is to get a professional tax advisor, and ignore all advice (including mine) that you get from a message board.

As an aside, I would go back and re-read your post, removing any reference to cards, and insert the words "stocks." If you were reducing your 30+ year holdings of stocks, you would expect to have some winners and some losers. You would know that you owe tax on the net amount of any profit. You would expect to pay that amount. The fact that it's cards makes no difference.

[ChiefBenderForever]

Based on what Jim is saying ebay is going to lose millions in income, and sellers not reporting are going to have to get creative, using a spouse, relative, or someone they can trust to set up accts and bail out at 19k, and of course they will want a cut. The card market probly wont be affected as much compared to electronics, dvds, ect. On the bright side maybe some will see the light and get legit. I wonder how many don't have a clue and end up getting slapped by the big man, my guess is more than a few. With the huge sales the past few months of all the dumping of merch my guess is ebay will surpass earnings so maybe hold off selling for a few months, if they don't adjust earnings expectations they could get slaughtered the next quarter. As always I have no clue what I am saying but find it interesting, I have never understood how this whole situation was off the radar all these years.

As far as bleedinblue situation goes, my unprofessional advice would be go to the national and take the best cash deal you can get !

[Jim VB]

Originally Posted by JohnnyHarmonica

Based on what Jim is saying ebay is going to lose millions in income, and sellers not reporting are going to have to get creative, using a spouse, relative, or someone they can trust to set up accts and bail out at 19k, and of course they will want a cut.

Johnny,

Where do you think those sellers will turn? Right now, your premise is that these sellers would rather not sell than pay the taxes they owe. I don't think that's a very sustainable business model.

[baseballart]

Originally Posted by Exhibitman

The brilliance of the Beatles aside as a general point, there really isn't an issue here if you run your card business as a proper business already. Honestly, the whining over the government creating a reporting mechanism that does no more than allow it to be sure that every business is complying with the tax laws is ridiculous. If being 'forced' to comply with the same tax laws as everyone else who runs a business is just too much for you, get out of the business. Otherwise, man up and be responsible businesspeople.

Adam

I agree 100% with what you're saying. However, if everyone complied, that would be bad for my business

And to reiterate what I said before, any business person who doesn't report his or her revenue from traceable credit card sales is simply playing audit roulette with the highest degree of stupidity, and should be prepared to face very severe consequences if they are audited.