Overpriced cards on ebay -- Are they part of a tax scam?

batsballsbases · #1 12-31-2011, 08:50 AM

It seems I was PMed by the person some of us were talking about in this thread. Instead of lurking around in the dark and sending me PMs why dont you post up and tell us why your business pratices are the way they are. So then we will all know and we can model our business after yours!Just to set the record straight I changed out any reference to your ebay handle,so I could be talking about anyone. Second in your reference to Leon Im well known on the board and if Leon wishes to give out the info to you that would be up to him. But until you post I see no reason to do that.

ctownboy · #2 12-31-2011, 12:00 PM

buymycards,

If these people don't have a store, just a regular eBay auction account, then they have no extra expense and can just post their "museum" every dump day for free.

David

Exhibitman · #3 12-31-2011, 12:10 PM

Inventory is not a deduction unless it goes bad [like perishables that spoil] and you write it off. Otherwise, you carry it until disposition.

The only "tax angle" at the end of the year for a calendar year taxpayer with a card selling business is to offset actual gains from the rest of the year with losses by dumping bad inventory at a loss to free up cash flow. The theory is that if you are in the top marginal tax brackets for Fed and state then every dollar of profit will be taxed at about 40%, so if you sell dead inventory [the junk we all accumulate and can't seem to get rid of] at a blow-out sale resulting in a loss, the loss offsets marginal profits you've already realized and you are effectively dropping about 40% of the loss on the government. It isn't a recipe for success but is sometimes done when cash flow [say for an upcoming auction] is a consideration and it's time to clean out the junk box. Letting the G absorb 40% of the loss can be somewhat soothing...

Runscott · #4 12-31-2011, 12:16 PM

Quote:

Originally Posted by Exhibitman

Inventory is not a deduction unless it goes bad [like perishables that spoil] and you write it off. Otherwise, you carry it until disposition.

The only "tax angle" at the end of the year for a calendar year taxpayer with a card selling business is to offset actual gains from the rest of the year with losses by dumping bad inventory at a loss to free up cash flow. The theory is that if you are in the top marginal tax brackets for Fed and state then every dollar of profit will be taxed at about 40%, so if you sell dead inventory [the junk we all accumulate and can't seem to get rid of] at a blow-out sale resulting in a loss, the loss offsets marginal profits you've already realized and you are effectively dropping about 40% of the loss on the government. It isn't a recipe for success but is sometimes done when cash flow [say for an upcoming auction] is a consideration and it's time to clean out the junk box. Letting the G absorb 40% of the loss can be somewhat soothing...

Thanks for the tips, Adam

HexsHeroes · #5 01-01-2012, 01:18 PM

Quote:

Originally Posted by Runscott

Thanks for the tips, Adam

. . . operating an "on-line" business for afew years, inwhich some expendable items are sold, while preserving one's primary collection/inventory with unrealistic BIN prices) might see like a plausible strategy for preparing for future liquidation of one's collection (via 3rd party auction) inorder to avoid the higher 28% tax treatment from sales of "collectibles". I'm just not sure what the IRS would deem an acceptable level of annual sales, to justy calling something a "business".

I realize this is not likely what's happening with the number of eBay dealers with unrealistic BIN prices, but the above thought/strategy has crossed my mind when I have contemplated the possibility of selling my collection in 5, 10, maybe 15 years from now.

Leon · #6 12-31-2011, 12:26 PM

Quote:

Originally Posted by batsballsbases

It seems I was PMed by the person some of us were talking about in this thread. Instead of lurking around in the dark and sending me PMs why dont you post up and tell us why your business pratices are the way they are. So then we will all know and we can model our business after yours!Just to set the record straight I changed out any reference to your ebay handle,so I could be talking about anyone. Second in your reference to Leon Im well know on the board and if Leon wishes to give out the info to you that would be up to him. But until you post I see no reason to do that.

This person also emailed me and PM'd me today about having your name in your posts. He went so far as to cut and paste one of the rules. I guess he not only has super high prices on ebay, he didn't really read ALL of the rules. I fired back the catch-22 rule and used it on him. Even though he is a member he hasn't ever posted, not even once. I see no need to help someone that doesn't contribute and spews the rules back to me. *(rules, unfortunately for him, that I wrote). If this was an egregious issue then maybe it would be different but him just whining to me over someone stating the obvious about his auctions wasn't going to make me change my mind. best regards

I should add....for clarification, I still would tell the person that emailed me, though he hasn't asked, who this poster is but that is about it. Everyone has a right to know who is saying anything at all about them, imo.

HRBAKER · #7 12-31-2011, 12:29 PM

Quote:

Originally Posted by Leon

This person also emailed me and PM'd me today about having your name in your posts. He went so far as to cut and paste one of the rules. I guess he not only has super high prices on ebay, he didn't really read ALL of the rules. I fired back the catch-22 rule and used it on him. Even though he is a member he hasn't ever posted, not even once. I see no need to help someone that doesn't contribute and spews the rules back to me. *(rules, unfortunately for him, that I wrote). If this was an egregious issue then maybe it would be different but him just whining to me over someone stating the obvious about his auctions wasn't going to make me change my mind. best regards

Looks like a trip to the Blocked Bidder List for you Leon.
I hope you can sleep.

Leon · #8 12-31-2011, 12:43 PM

Quote:

Originally Posted by HRBAKER

Looks like a trip to the Blocked Bidder List for you Leon.

and my wife will thank him!!

.
.

batsballsbases · #9 12-31-2011, 02:18 PM

Leon,
Thanks I did go back and change out his ebay handle( I will call him certain seller) but I guess my challlenge to him went un-answered. Looks to me like another high priced ebay generic idiot puffing out his chest because poor Al challenged him on his high priced junk.

Leon · #10 12-31-2011, 02:28 PM

I understand Al.
With what I had said earlier, and what has been stated here, I should add something else in this person's defense. I am not sure I have bought from him but the one time I remember making an offer, he and I couldn't reach an agreement, but he was cordial and polite in his correspondence with me. .... back to collecting ..

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