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Old 01-11-2013, 08:26 AM   #51 (permalink)
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if it says you have no 2012 tax documents does that mean they aren't sending a 1099? I am filing anyways just to be safe but just curious
I think they have until the end of Feb to send you one.
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Old 01-11-2013, 08:28 AM   #52 (permalink)
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I think they have until the end of Feb to send you one.
I get my taxes done the last week of jan or first week of feb so I hope they don't plan on waiting that long I usually have my returns already by that time
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Old 01-11-2013, 09:10 AM   #53 (permalink)
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I get my taxes done the last week of jan or first week of feb so I hope they don't plan on waiting that long I usually have my returns already by that time
Run the report mentioned above and you should have a pretty good idea if you are close to the 1099 reporting limits.

As been mentioned a million times, you need to report your income regardless of getting the 1099.
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Old 01-11-2013, 11:53 AM   #54 (permalink)
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close to the limits? im close to them but below, they dont round up right?
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Old 01-11-2013, 12:36 PM   #55 (permalink)
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if it says you have no 2012 tax documents does that mean they aren't sending a 1099? I am filing anyways just to be safe but just curious
Companies have until the 31st of Januart to have tax documents in the mail.
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Old 01-11-2013, 01:07 PM   #56 (permalink)
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Companies have until the 31st of Januart to have tax documents in the mail.
Januart? I thought it was Smarch ...

I've always heard "postmarked by January 31". Not sure where this end-of-February stuff came from.
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Old 01-11-2013, 03:17 PM   #57 (permalink)
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close to the limits? im close to them but below, they dont round up right?
No, but if I was within a few thousand I'd wait to see if I got a 1099 just in case.
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Old 01-11-2013, 03:35 PM   #58 (permalink)
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No, but if I was within a few thousand I'd wait to see if I got a 1099 just in case.
yeah im within less than 1k of it
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Old 01-11-2013, 06:56 PM   #59 (permalink)
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I buy a lot of private collections and of course I pay with cash. The seller would never trust me with a check bec they don't know me. If I would be audited what would I need to prove that I spent the money? It is hard to get reciepts from people that I am paying cash to. Could I keep my own records like write my own receipt or keep it in a note book? Would the IRS accept that? I do have the bank statements that show cash withdrawals, does that help? Thanks
Whenever possible, get a receipt. It sounds to me that you know up front the cash value of your purchase and withdraw just that amount from the bank each time. If you do not receive a receipt, I would write on the withdrawal slip the contents of the purchase as the slip would already contain the date and amount of the purchase. In absence of those, I would write your own receipts for your records and keep any other form of proof you can obtain that would also document the purchase.

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I've always heard "postmarked by January 31". Not sure where this end-of-February stuff came from.
I have this backwards in the OP. The 1099, much like your W-2, has to be postmarked to the recipient by January 31st. The IRS's copy is not due until February 28th. I would still wait to the end of February if you believe you should receive one as some preparation may be delinquent.



When I get some more time, I will update the OP for the additional questions in this thread.
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Old 01-20-2013, 11:21 AM   #60 (permalink)
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I updated the original post for the other questions in this thread and for some other items including charitable contributions.
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Old 01-20-2013, 11:44 AM   #61 (permalink)
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Whenever possible, get a receipt. It sounds to me that you know up front the cash value of your purchase and withdraw just that amount from the bank each time. If you do not receive a receipt, I would write on the withdrawal slip the contents of the purchase as the slip would already contain the date and amount of the purchase. In absence of those, I would write your own receipts for your records and keep any other form of proof you can obtain that would also document the purchase.



I have this backwards in the OP. The 1099, much like your W-2, has to be postmarked to the recipient by January 31st. The IRS's copy is not due until February 28th. I would still wait to the end of February if you believe you should receive one as some preparation may be delinquent.



When I get some more time, I will update the OP for the additional questions in this thread.
Paypal has posted my 1099 on their site. Can I use this to file taxes?

Can I just use my year end statement as a receipt. It shows all payments received and all payments made and shows a wash (actually a small loss), or do I have to provide all receipts?

My main transactions are for group breaks and I do not profit on my breaks as others do.
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Old 01-20-2013, 12:34 PM   #62 (permalink)
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Januart? I thought it was Smarch ...

I've always heard "postmarked by January 31". Not sure where this end-of-February stuff came from.
i own a small business, i can assure you it is january 31st, my software keeps yelling at me every time i turn it on
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Old 01-20-2013, 10:25 PM   #63 (permalink)
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Paypal has posted my 1099 on their site. Can I use this to file taxes?

Can I just use my year end statement as a receipt. It shows all payments received and all payments made and shows a wash (actually a small loss), or do I have to provide all receipts?

My main transactions are for group breaks and I do not profit on my breaks as others do.
You need to make sure to account for existing inventory. Any payments sent for items that are still in your inventory do not count as expenses until the items are sold.
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Old 01-29-2013, 05:20 PM   #64 (permalink)
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What kind of expenses can I deduct in relation to the cards I sell?

These expenses would be costs incurred in association with the listing and final value fees on eBay, Paypal fees, COMC fees, and shipping costs both actual postage as well as envelopes, toploaders, etc. You are also allowed to deduct the cost that you incurred to initially acquire the card. This does not mean that you can deduct the cost of a box purchased from Blowout if you only sell a handful of cards from the box. You should allocate the cost of the box among all of the cards that came in the box.** Example: I purchase a box from blowout for $100 shipped. If the box contains 100 cards, the cost per card is $1. I sell 15 cards for $30 on eBay. eBay charges me $3 in total fees and Paypal charges $1 in fees. It cost me $2 to ship the cards. In this example, the total cost of just the cards sold is $15 (15 cards * $1 per card). On your tax return, you would show $30 of sales, $15 of costs associated with the items you sold (also known as purchase costs), $4 of selling fees ($3 from eBay and $1 from Paypal), and $2 for shipping. In this example, you would only be taxed on $9 of net profits ($30 less the $15 purchase costs, $4 in selling fees, and $2 shipping). If you are an individual, all of this would be disclosed on Schedule C.

**There are other methods you can use to allocate the costs of the box among the cards; this would be a good discussion to have with your tax professional to avoid paying unnecessary taxes (keyword being avoid see last sentence of question 2).
Thanks for all the great information you provided us.

Just to recap. I buy Bowman Jumbo box at $125.00 and sell a rare rc auto for $50.00. I have to give the cost of card sold at only .26 (12 packs ber box 32 cards per pack brings 384 cards $100/384=.26 per card). This would show a profit (prior to fees and expenses) of $49.74. While the rest of the 383 cards from the box would be worth $10.00 and still in my inventory would that make that profit on the one card accurate?

How do I account of the rest of the cards as most likely I would never sell them. Need to see a CPA right away.
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Old 01-29-2013, 05:24 PM   #65 (permalink)
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OP is full of info, will have to come back later to read up on it.

Thanks for the post.
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Old 01-29-2013, 06:24 PM   #66 (permalink)
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thanks for the info
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Old 01-29-2013, 06:29 PM   #67 (permalink)
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Paypal has posted my 1099 on their site. Can I use this to file taxes?

Can I just use my year end statement as a receipt. It shows all payments received and all payments made and shows a wash (actually a small loss), or do I have to provide all receipts?

My main transactions are for group breaks and I do not profit on my breaks as others do.
This is what I was hoping to do. Almost all my transactions are from hosting, or joining others breaks. My year end statement shows an $8,000 loss.
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Old 01-29-2013, 11:25 PM   #68 (permalink)
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My main transactions are for group breaks and I do not profit on my breaks as others do.
The safe bet is to report your income as usual and report the expenses on either Schedule C (if treating it as a business) or on Schedule A (if treating it as a hobby). The better answer would be to consult your tax adviser. Technically, if you are hosting breaks where you do not make profit, such as through the Blowout forum rules, you are not in the business of making money. If you host enough breaks to meet the Paypal 1099 requirement, it would be worth the extra expense to find a local CPA to walk you through the proper steps to ensure your maximum deduction.

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Almost all my transactions are from hosting, or joining others breaks. My year end statement shows an $8,000 loss.
Unless you sold the cards from your "joining other breaks," those expenses are not deductible even though they appear on your Paypal statement. That statement is similar to a bank statement, it just shows all activity coming in and going out of your Paypal account, and not necessarily your tax deductible expenses.

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I buy Bowman Jumbo box at $125.00 and sell a rare rc auto for $50.00. I have to give the cost of card sold at only .26 (12 packs ber box 32 cards per pack brings 384 cards $100/384=.26 per card). This would show a profit (prior to fees and expenses) of $49.74. While the rest of the 383 cards from the box would be worth $10.00 and still in my inventory would that make that profit on the one card accurate?

How do I account of the rest of the cards as most likely I would never sell them.
Depending on how you valued the cards, yes; there is another example in this thread (I think at the bottom of page 1 or top of page 2). The other cards could not be deducted if you do not sell them. As a very simple example, if this was a business, the leftover cards would remain in your inventory until you sold the company and would never hit the income statement. How it balances out in the end, is that if you later decided to sell your business, your appraised value would include those cards sitting in your inventory. At the conclusion of the sale, you would recognize a gain or loss that would put you back at even. Again, this is a very simplistic example and assumes a lot.
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Old 01-30-2013, 09:34 AM   #69 (permalink)
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Unless you sold the cards from your "joining other breaks," those expenses are not deductible even though they appear on your Paypal statement. That statement is similar to a bank statement, it just shows all activity coming in and going out of your Paypal account, and not necessarily your tax deductible expenses
Right, but the reason I got to the 200/20k limits is from accepting payments from hosting various club breaks on BO. Obviously there is no profit in these for me. Most of the loss is from buying my own cards/jerseys/etc via PayPal, so I guess my question is this:

If I can show via PayPal transactions that I collected xxx amount of $$, and used it to purchase cases from BO, and said monies cancel out with product, shipping, fees - would that be enough to show that I made no profits?

The other thing that confuses me is it lists the money I transfer in and out of my Paypal from my bank account. If I transferred 10k in one clip, then sent it back to my bank for some odd reason, would that still trigger Paypal to give me a 1099?
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Old 01-30-2013, 09:56 AM   #70 (permalink)
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Right, but the reason I got to the 200/20k limits is from accepting payments from hosting various club breaks on BO. Obviously there is no profit in these for me. Most of the loss is from buying my own cards/jerseys/etc via PayPal, so I guess my question is this:

If I can show via PayPal transactions that I collected xxx amount of $$, and used it to purchase cases from BO, and said monies cancel out with product, shipping, fees - would that be enough to show that I made no profits?

The other thing that confuses me is it lists the money I transfer in and out of my Paypal from my bank account. If I transferred 10k in one clip, then sent it back to my bank for some odd reason, would that still trigger Paypal to give me a 1099?

Unfortunately tax code is not cut and dry in this area.

You MUST list the 1099 amount as income. You can deduct losses up to the amount of sales on Schedule A.

Now if you are never audited you are fine. If you are audited you need to show all your records to the IRS Agent, who's ranks have increased by large amounts because of the health care legislation, and the AGENT decides if the expenses are legit or not.

If they are you are just out your time for being audited.

If not then you owe back taxes, interest and penalties.

Your best bet is to have a tax professional do your taxes. One that will come with you for an audit.

The government is looking for "revenue" more now than ever.

In college, back in the stone age, my professor did a case study on a may who won $13K+ at the racing track. He got audited and had to bring in all his losing tickets to the audit.
The auditor found that 30 or so tickets with $300 in wagers were all dirty and covered with footprints and food and drink residue.
The auditor did not accept ANY of the tickets and the man was required to pay the taxes, interest and penalties on the whole $13K+

Now I know this is an extreme case and it happened 25 years ago but better to protect yourself.
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Old 01-26-2014, 10:58 PM   #71 (permalink)
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Exclamation The tax deadline is a mere 79 days away...

The tax season is upon us. For your benefit, I have updated the original post for 2013/2014 tax updates and other questions that I have received. Enjoy!
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Old 01-27-2014, 02:29 AM   #72 (permalink)
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have to see about this, have been using H&R Block for several years now and they've never said anything about Ebay and sales on there. I'd think in this day and age it would be a common question to ask their customers
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Old 01-27-2014, 08:39 AM   #73 (permalink)
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Solid information for sure. One thing I'd add (and I probably skipped it) is that there is always information floating around these boards regarding "If you sell less than $400 or $600" then you don't have to report. This is in addition to people that seem to think PayPal and the IRS are the same thing and they don't have to report without a 1099.

There is no such thing.

There is a threshold for reporting SE tax but there isn't one for reporting sales. Every penny, theoretically - depending on how you are set up, needs to be reported.

Posts like this make me thankful I kepy my CPA designation but got out of Public Accounting. Haha.
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Old 10-23-2014, 03:06 PM   #74 (permalink)
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This makes no sense... paying more taxes on something you already paid the taxes on? (you paid taxes on the wax in the first place). Wouldn't this be double accounting?
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Old 10-23-2014, 03:17 PM   #75 (permalink)
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This makes no sense... paying more taxes on something you already paid the taxes on? (you paid taxes on the wax in the first place). Wouldn't this be double accounting?
You paid sales tax on the wax.

You are paying income tax on your own profits (gains) from sales if/when you sell singles.
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