1099 and YOU

[rj_lucas]

One critical point is whether these sales will be treated as ordinary income, or as capital gains. If treated as ordinary income, you'll be taxed at your marginal rate (e.g. 25%, 33%, etc. depending on your total income).

If treated as capital gains, if you've held the item for more than a year before selling you'll be able to take it as a long-term gain (currently taxed at 15%). In addition, if treated as capital gains, any losses from the sale of these items could be used to offset any gains from the sale of other items dollar for dollar.

Rick
rickjlucas@gmail.com

[cohibasmoker]

GUYS and GALS - NO POLITICS. Let's try to stick with this important issue (s) so this thread won't be deleted by the monitors.

Jim

flaa1a@comcast.net

[xpress34]

You don't like a one sentence comment so you provide a few paragraph rant. Comical. How about just ignoring the comment?

If you (hobbyist) buy an item, sales or use tax is due. If you sell an item and make a profit, income tax is due (or capital gains if the item would qualify as an investment). The health care bill didn't change that. What may change is the issuance of 1099's to force you into paying tax on something you should have been voluntarily complying with in the first place.

My point being, why couldn't that poster (or many others on other threads here) stick to the topic of the 1099 without having to insert a Political Commentary - one line or otherwise?

That said. the 1099 law very well could affect us as collectors/dealers, so it is pertinent to the hobby. The politico crap isn't and I'm tired or reading it here.

As far as the 1099's issue, I would like to know how many people here have voluntarily filed 1099s or paid local use taxes on each item they have purchased, sold or traded. My guess would be it is quite low.

The other issue is that once it becomes more widely known, there will be a back lash to it because it won't affect just GU / Sports Collectors - it will affect Comic Book Collectors, Entertainment Collector's, etc.

I understand the idea behind it, but it's effect on eBay will spill over to every other auction site as well as local governments having to hire employees to go door to door on Garage Sales every weekend and collecting taxes or dropping off forms, etc. OR requiring you to request a SALES Permit to have a Garage Sale so the local government can collect it's taxes.

No matter how you cut it, it's going to be a nightmare for both the government (to implement and oversee) and to the citizens to track and comply with.

Just my .02

- Smitty