New 1099 IRS Rule for 2024: Sports and Pokémon Card Sellers, Here's What to Know.

[@airchewy-cards]

This will crush the IRS if they go down in the 1099 trigger requirements, which is why this was delayed. I remember last year when they were talking about the $600 and the example that came up is that If you sold a used cell phone it's a mess because who keeps track of the purchase price and the depreciation of the use of it.

[@kevinfurby1]

Awesome update. Appreciate the info!

[@montana01]

I’ve talked to CPA’s and apparently there’s multiple ways to account for certain things, that can both be considered correct. This is gonna be a mess for the IRS. I doubt they will even be able to make it to those that properly report it, to validate receipts. Time will tell, but we’ll see if all these IRS agents are still employed next year.

[@NEO_Cards_Comics]

A mess is a very accurate term

[@AbelinVegas]

How long before accounting firms begin to sponsor card channels?

[@NEO_Cards_Comics]

🤣

[@chrisc4264]

The law office firm of Pump and Dump

[@BreakerzHQ]

Great video sir. thx

[@rs500gsoat]

When a supposedly simple hobby becomes a trail of paperwork and receipts it becomes a job. And for me, one job is enough.

[@ryanra44]

Appreciate the video.

[@YankeesFan74]

Just meet in the middle at $10,000 and most would be happy. I don't even have a store and cleared around $9600 so far this year. I mainly sell low #'d base of Rc's and Top Stars nothing high end at all. $5000 is way too easy to hit.

[@renoraines6322]

With the card market the way it’s been you could actually get money back for losses. Or if you have gains sell your cards you overpaid for to eliminate the gain.

[@JakeP2013]

Crazy to me that they still plan to get to the $600 limit, nobody serious is dealing in amounts that small for an entire year, and its mainly just going to catch out people who are unaware and it probably wont be worth it for them to spend the extra fee with tax preparers to itemize deductions, so they will just have to pay tax as if it was all profit, government has to know this and it seems super scummy. I'm a small time/hobbyist card show vendor that does maybe 7 or 8 shows a year, and I don't really do any sales outside of that. I really just do all this for fun as a way to make a little money back from this hobby, and half the time I end up spending all the money I make on stuff I want for my collection at the same show. I know for certain I don't make a profit, but I certainly will have gross sales in the 5-10k range for the year, thankfully not all on one platform though. It seems like I have no other choice but to start taking bookkeeping seriously, just really sucks that you can't just be low key and have fun with it, I'd get it if I was dealing with large amounts of money, like the old rule of 20k, but like I said, $600 in sales for an entire year is never going to be a serious business, its a joke. And yes, I know you are supposed to report ALL sales, even if you don't get a 1099, and cash sales too!!! The issue I take with all of this is someone like me, that is not out to make a profit, this is just a waste of my time and the IRS's time if for some reason they decide to audit me on my reported profit of lets say 50 bucks for 6.5k in gross sales, and find nothing, really worth everyone's time on that, super cool 👍

[@geodio]

It was supposed to be $600 two years ago. That's why eBay requires your SSN if you even get close to $600.

[@Jmillz181]

Lost money selling everything this year so the irs can owe me money instead. Capital losses no gains in this crap economy

[@SteveRucker]

Same boat.

[@TopNotchTommy]

Soo if you rip wax is that considered an expense?!

[@gianvit0]

Hypothetically speaking If you send $4999 worth of cards to 5 consignment companies, you won’t go above the threshold? Even though you sold 25k worth of cards?

[@hossmaki1]

I think this falls under, Go ask a professional because who wants to try and guess at the IRS non-helpful descriptions.

[@gianvit0]

@ i would guess you can spread your cards out through many different consignment companies and be fine but only for low end stuff You sell 1 high end card and you’re getting a tax form.

[@Fake-dw9zx]

If you're in the business of selling cards and they are too a 1099-Nec should be issued for the full years worth of income. If its just a hobby, 100%of income is to be reported and are not able to deduct any expenses.

[@kennyscards6_IG]

Is this alley for goods and services transactions on PayPal?

[@ScottMarkman]

Did you create a separate business for this, or do just use your normal ssn?

[@ASMRPeople]

Really nice of the IRS to spring this a month before the end of year.

[@montana01]

They’ve been talking about this for years.

[@ASMRPeople]

@montana01 yes they have, but it would have been nice to announce this at the beginning of the years so I could save receipts

[@kickitfwd]

Do ppl avoid all this by consigning their stuff or how does that work

[@SkyCommander108]

Nope. Accounting is still done the same is if you were to sell it yourself, only difference is you’re hiring a third party and paying them to sell your cards, e.g. added expenses. In the business world, you would create a legal entity through either a Limited Liability Company (LLC) or Partnership (LLP) and pay yourself a salary, but again you run into the issue of that stacking on your total Adjusted Gross Income (AGI), which determines your tax bracket/rate for the year you file taxes. Overall, Uncle Sam is going to take his cut. Only the rich has access to the top tier tax accountants and lawyers to weasel their way through the tax code. Look at our President Elect and other rich members of high society. That’s how they cheat the system.

[@kickitfwd]

@@SkyCommander108 you don't get a 1099 if you consign your cards though right? That's the part I'm confused about

[@SkyCommander108]

@kickitfwd depends on what IRS sets as a threshold. As the video shows, for 2024 it is $5k, but over the next couple of years is dropping down to $600. If you make over the threshold, yeah you’re getting a 1099 issued. Same principle as gambling, if you make under the threshold, it’s not worth the government’s time to chase after what’s effectively a penny. Cost to Benefit.

[@kickitfwd]

@@SkyCommander108 I appreciate your responses and apologize if i sound like a complete dummy here....if I send a card to a consignment shop (let's just say Probstein for this example) and it sells for $7k on eBay. Probstein sends me ACH wire (so there's no Paypal involved) for the proceeds. How eBay issue me a 1099? They would issue Probstein one right?

[@Cardcollector45643]

I've never gotten a 1099 from any of the big consignors. So I guess probably? You're still responsible for it tho, you just don't get anything official like what ebay or paypal sends you.

[@patescortez88]

Yup I hot a email that I have one smh. Keep them poor

[@MikelTulp]

Why do you need to keep track of things you buy? Sorry never done my own taxes

[@sp123]

You only have to pay taxes on the profits from card sales. If you have a list of what cards and supplies you bought at what price you can subtract that from your taxable income

[@thememefactory8108]

I got an email from eBay stating that I would be receiving one of these. Check your emails over the last month if you aren’t sure.

[@KetchumAllCollectibles]

People that are dodging taxes are doing themselves a disservice. Doing things legit above board and intelligently opens so many doors for people in this space to spend less money overall (and being able to rest easy at night not worried about an audit)

[@KetchumAllCollectibles]

not your dads cpa on YT has some great tax advice from an actual tax advisor (still consult a professional local to you)

[@airchewy-cards]

@@KetchumAllCollectibles first I 100% agree to pay your taxes and don't dodge them, but this is going to be a mess for people who are just trying to sell "junk" from around the house. If it's a side hustle or full time thing, then you should be paying your taxes and tracking them like neo said. If we want to get black and white on tax rules, then every penny you find on the ground you should report to the IRS.

[@KetchumAllCollectibles]

@airchewy-cards yeah I'm not a huge fan of the reasoning behind why they're doing it so low, but for any side hustlers it's definitely better for them they get over the hurdle of legitizimizing.

[@old_man_marvel]

Ugh, fees fees fees, just another fee on top of ebay final value, the cost of buying the item in the first place and the sales tax paid up front on top of it. It just makes things more expensive, thanks government!

[@KetchumAllCollectibles]

@old_man_marvel if you're buying with intent to resell you should be paying sales tax up front. Many collectors sell things eventually. Benefits many to be set up as a biz

[@Fake-dw9zx]

The best part of this is so many people think a hobby means they don't have to pay taxes on the income. Not only do you have to pay taxes, you also can't deduct ANY expenses. If you buy a card for $100, sell it for $200, the $200 is fully taxable if done as a hobby. 1099-NEC and 1099-MISC already have a $600 threshold.

[@actionic135]

It's not income, it's a capital gain and you are "only" taxed on the additional $100. That's my understanding. And it's taxed at the same rate as ordinary income if sold less than a year from purchase and at the capital gains rate if more than a year.

[@bobbymo3591]

Not if if you buy from an llc. Which everyone should be

[@Fake-dw9zx]

An LLC means nothing to the IRS. It's 95% a legal term. Some states have special rules that will impact how the IRS treats an LLC. The IRS disregards an LLC and allows an LLC to be taxed as a sole proprietorship, partnership, S-Corp or C-corp. I think what you're referring too is you don't issue 1099-NEC or Misc to a S-corp or C-corp unless they are a lawyer, then you always issue them. And as an LLC you'd never have hobby income. In the name you are telling the IRS you are a company, for profit.

[@kylewarren5268]

Glad I saved all my receipts from the last four years. Lol. I shouldn't owe much if anything once they see what I spent compared to what I made

[@kylewarren5268]

Trump can't cut this bullshit out of happening? I know not this year but he can't just end that after this season?

[@Jmillz181]

Oh he can and will i think.