POKEMON CARD TAXES! 5 Deductions to SAVE MONEY! (Market Analysis)
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- čas přidán 21. 07. 2024
- My eBay Store: www.ebay.com/str/pokemonclass... (Affiliate Link)
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More on Taxes: • NEW TAX RULES ON POKEM...
Tax season is officially here in the United States with some big changes coming for online sellers in 2022. The IRS recently announced new tax reporting guidelines for online platforms such as eBay, PayPal, Amazon, Facebook Marketplace, and more. In 2022, these sites will now be required to file a 1099K for any seller who exceeds $600 in sales. While all sales are supposed to be reported to the IRS (regardless of amount), this new guideline will hit online resellers by surprise, many of whom have previously gone under the radar with this sales revenue.
In this video, we will examine what this means for you as an online seller, and explore 5 tax deductions for online sellers. If you sell Pokemon cards or other items online, I encourage you to plan ahead, keep detailed records of your sales/expenses, and consult with a licensed CPA or tax professional . . . prepare now!
Pokemon Classics
*Disclaimer: I am not a licensed CPA or certified tax expert. The information in this video simply reflects my personal understanding of tax laws for online selling. All tax situations are different and vary by income, location, profession, and filing status. Please consult with a professional and do your own research!
#SmallBusiness #1099K #eBay
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More on 2022 Tax Rules: czcams.com/video/m_6x6ZvojhY/video.html
Love this. Had to pay 1700 this year. I sold all my Pokémon games and rare cards. I’m only holding onto my favorite cards
The real info Pokémon sellers need, if people do it right they’ll never have to worry!
Or I just never pay taxes
Best video ive seen on CZcams in a while!🔥🔥
Hands down the best informational video to prepare for next tax season. thank you so much for making this!
Thank you so much you made taxes a lot easier for me! So great to hear advice from another card shop ^_^
This information is important for anyone that wants to run a business of any kind. Great video man hope it blows up.
Great information!
Great info good sir!
Im living proof of this scenario where I never thought I was going to sell but I had no choice. Fortunately I found your video to help me keep track of everything. Thank you for the help bro!
People way underestimate how much taxes are paid when doing things legitimately. The crowd who evades all taxes and saves the $4410 per $10k profit (in your example) is going to take a hard hit if/when they are affected by the new lower reporting limits. Nice video.
Can someone tell me do I need to do this if I am getting store credit on TCGplayer?
Thank you for the video. I'm curious - if you setup a sole proprietorship (or LLC which I don't think is the route for me) could you theoretically have as part of it a small youtube channel (successful or not) showing you rip open packs for entertainment or another qualified purpose to then be able to deduct those packs as some type of business expense?
Definitely dependent on a person's situation. The other two potential methods are a) paying the collectibles tax on the gains - which is 28 percent I think. Or, if you're losing money on net most years, I think you can claim it as "hobbyist" income.
Very informative video. Really appreciated this, but I still have one question. Is it beneficial to have an LLC associated with selling? I don’t believe it was clarified.
This is exactly why all my huge deals are usually private and physical. Mr Uncle Sam shouldn’t have his hands in your pocket before you can even make a profit (If any).
There’s no promise that you’ll have a capital gain on any of your items, let’s say you barely have any gain at all, that shouldn’t even be a concern for you. Sellers on platforms, beware.
Is there any tax reductions when it comes to donations? I want to donate my bulk to kids' charity and was hoping I'd be able to get a write-off out of it
Have you considered a thermal label printer to save on ink? I use the Brother QL-1100, which is thermal and does not require ink, and the labels are printed quickly and are adhesive-backed, so it really speeds things up. Switching from a regular printer to a thermal label printer was one of the best process improvements.
This is a great suggestion. I'm going to look into it!
Thanks for this, Ill always tell myself "Dont make it Double!"
Can I show them my purchase history at a local card shop? My credit card history shows the amount I paid and the LGS’s name.
I was wondering this too
Sorry if you mentioned this or if it's been mentioned, but, do you deduct the actual expense of you buying the product you expect to resell at a gain/loss? It seems like everything was ancillary expenses, but what about individual cards, packs, boxes that you buy and resell?
Yes, if you're operating as a business, the cost of the products you purchase to resell is referred to as "Cost of Goods" . . . generally, you can only subtract "Cost of Goods" once an item is sold, which then determines your profit for the item. For example, if you purchased a card for $5 and sold it for $10, that would be a $5 profit. Additional deductions (when applicable) are further subtracted from the total profit for the year. Again, deductions depend on your situation and whether or not you meet the requirements to be considered a "business" . . . see a CPA or tax expert to verify you are getting the best tax treatment you can.
do you think tag team cards worth investing or collecting as the art works are fantastic and is the first time pokemon company putting several pokemons together on the same card. thanks
Dang you nailed it.
Here’s a common question I get all the time. How much would I pay on taxes if I made 10k but spent 10k on product?
That depends. Generally, you only get to deduct the cost of the items you sell (subtract purchase price from sold price to determine taxable revenue). If you bought 10K of cards for your personal collection after selling 10K of cards, taxes will be owed on all 10K (minus original purchase price of THOSE cards)!
@@pokemon_classics thank you so much for the reply! That makes a lot of sense. This video has put me a little more at ease come tax season. Keep up the great work!
when you say the purchase price of the card, if the card was in an Elite Trainee Box (ETB) would you deduct the whole ETB price? There are many cards I pulled and graded and then sold for much more than the ETB.
I'll tell u here what im worried about. So my process rn is I buy card lots that i think have 2 or 3 cards worth holding on to to get graded down the road. So the cards I don't want to keep i flip as a raw card to try and make back as much money as possible that i spent on the lot while holding the really good cards. So my issue is im worried they are gonna make me pay taxes on all the cards I sell when in reality I actually haven't made profit yet off any lot. The profit comes in with grading for my plan. So im worried im gonna pay income tax on lots that i technically haven't made more money off of than I spent. Lol. Now im keeping a written record of everything i buy and sell so maybe i can prove to them I didnt make taxable income but idk how taxes work really. Especially with this. My um... Previous line of work we'll call it, wasn't anything taxable so I've never really messed with taxes more than just having a regular job where I get most my money refunded cause I made a small amount. And those are pretty much ready made tax forms by the company. So I just know they are gonna tax me with making income I technically haven't made yet. I just know it. Lol
Keep records. eBay (or whichever platform) will likely file a 1099 at the end of the year, showing your "revenue" to be taxed. You will likely need to show your cost basis and expenses/fees to adjust the amount of profit down accordingly (possibly down to zero). It can be a fairly complicated situation, but if you track all of your purchases and sales, most CPA's and tax preparers can handle it, relatively easily.
I think we need to go the 1776 route with the irs. Tar and feathers and whatnot😂
The intro..? Great video as always and thanks for the advice. I’m not going to pay taxes on Pokémon cards lmao 😂. Idk about yall tho. That’s dumb
Most collectors who also sell cards in the United States will have to this year or risk financial penalties and potential jail time at the end of the year.
Good luck with that
@@Hitmonscorner_ko You can sell mainly on offer up, every time You hit $500 online such as eBay or mercari in sales, close the account and make a new one. It’s not that hard. Y’all trippin
@@pokemon_classics Sell on OfferUp, when you hit $500 on mercari/eBay then close the account and make a new one. It’s not hard or crazy. Private sales are always the way to go, avoid online 👌🏼
@@topang4304 I mean, technically you could, but tax evasion is a felony. I'd rather just pay my taxes and complain about it.
If you buy a case and review the card is that a write off as a youtuber
Just tell them you bought them in cash sold them at a loss. Lol
Why these rules did not apply to Gary?
Because he’s rich