Sold CLASSIC RICHARD BLACK FS OLD SCHOOL CUE Lower price sold.
- Thread starter Rtoron
- Start date
Sold Item
David Sorensen
Active member
Where is it ?
It is on page 1 right now.
Instead of worrying about 4% Pay pal fees for G&S payments, Sellers should be more concerned with the new 2022 IRS reporting requirements for any internet sale above $600- Accepting Pay pal G&S payment or selling a cue on e bay will result in your need to report that cue income on your Fed and state return in early 2023.
If you pay someone to do your return you may very well be charged for a schedule C addition to your return- also, all profit from your cue sales will be taxed at your income bracket rate- both Fed and state. 4%Pay Pal fee on a $2,000 cue sale is $80- and E bay is charging about 13% on cue sales- now, you may have to add in several hundred dollars in additional fed and state income tax as a cost of selling your nice custom cue.
Reporting is unavoidable- the IRS will get your cue sale revenue info directly from Pay Pal and E bay- it will be computer matched to your tax return - if your cue sale is not reported by you- they almost certainly will send you and audit letter asking for back tax and penalty and interest.
A $2,000 cue sale on eBay today, could end up costing the seller over $500 in ebay fees and Fed and State income taxes - and possibly more.
Pay Pal F&F payments are NOT reported to the IRS. Just know this fact when you decide how you are willing to be paid.
If you are going to stay with e bay or accepting Pay Pal G&S on any internet site- highly advise the sellers to have good records of their cost of the cues that they sell, so that when you report your cue sale income, you can reduce your taxable income from that cue sale by your original cost of the cue.
Actual cue purchase receipts, Cue Blue book values IF you acquired your cue within a few years of a Blue Book publication date, letters from a cue maker stating the value of a cue on your acquisition date, records from your Pay Pal, E bay, or credit card account with dates and amounts of your cue purchases can all serve as your cost basis on your custom cue sales.
If you pay someone to do your return you may very well be charged for a schedule C addition to your return- also, all profit from your cue sales will be taxed at your income bracket rate- both Fed and state. 4%Pay Pal fee on a $2,000 cue sale is $80- and E bay is charging about 13% on cue sales- now, you may have to add in several hundred dollars in additional fed and state income tax as a cost of selling your nice custom cue.
Reporting is unavoidable- the IRS will get your cue sale revenue info directly from Pay Pal and E bay- it will be computer matched to your tax return - if your cue sale is not reported by you- they almost certainly will send you and audit letter asking for back tax and penalty and interest.
A $2,000 cue sale on eBay today, could end up costing the seller over $500 in ebay fees and Fed and State income taxes - and possibly more.
Pay Pal F&F payments are NOT reported to the IRS. Just know this fact when you decide how you are willing to be paid.
If you are going to stay with e bay or accepting Pay Pal G&S on any internet site- highly advise the sellers to have good records of their cost of the cues that they sell, so that when you report your cue sale income, you can reduce your taxable income from that cue sale by your original cost of the cue.
Actual cue purchase receipts, Cue Blue book values IF you acquired your cue within a few years of a Blue Book publication date, letters from a cue maker stating the value of a cue on your acquisition date, records from your Pay Pal, E bay, or credit card account with dates and amounts of your cue purchases can all serve as your cost basis on your custom cue sales.
Thanks. I forgot about the IRS dipping their fingers in our business.
