Great vid. Can’t wait for next weeks video. Can you include selling vintage childhood cards vs modern cards? Maybe a “receipt” from a yard sale would be better than claiming they are from childhood.
I made a note to include something on this. Next few weeks there will be a bit of a series of videos on reseller taxes so I'll put it where it fits best not sure when that'll end up yet. Thanks for the note.
Great points and fully agree on all. I would like to see more on what reports you run, what analysis you do of your buying on x interval and how you adjust your business accordingly.
The timing of this video couldn't be better! As someone who is trying to set up correctly (albeit in a different country), it really reaffirms that I'm taking the right approach now.
I am on that point now. I've been collecting for three years, just paying taxes and stuff. I have 9 sales last year. I'm not yet there but i'm defintitely interested in starting a business in collectibles in a year or two.
@@KetchumAllCollectibles The definition of a business intrigues me always which you mentionned. I'd love to hear more about that. I purchased products three years ago, with the intent of obviously ever selling them but not immediateley and not with the sole purpose of ever selling them with a profit. I purchased it because I liked it. I argue, can you sell anything as a collector? It is not my fault the price went up in those years (in which I have never ever had certain products up for sale). Am I supposed to sell them for the same price as I purchased them for because I'm not allowed to make any gains? That is the side i'm still on, a collector, and that connects to the point that you made again, if you buy anything and make a profit, you are a business, well, im not (yet) but I'm currently just learning about the market slowly and steadily untill I feel I'm ready to eat all those fees and taxes. Love to hear more about everything on the next episode tho! I want to be as transparent as possible myself as well, I believe transparency is the future.
I'd like a full video on the benefits of assuming a "business" role for a hobbiest not really looking for full time income but enjoy the buy/sell/collect fun stuff.
Next couple weeks worth of videos will be primarily business focused but similar applies to collectors who do sell some and might end up profiting (or not even) here and there or at least getting 1099s
@@KetchumAllCollectibles what’s the threshold for a 1099 on eBay, I’ve been selling more lately but not sure of the threshold I haven’t hit the monthly limit
@JediMasterT they've been talking $600 and in some states it has been for a long time . I'd act as if that's the case since you need to report regardless of 1099 or not. Some states before the change though are 200 sales and $20k
@@KetchumAllCollectibles but in all seriousness wouldnt the best practice be to only handle in $250+ slabs and send them all to kac consignment? Uncle Sam who?
I’m looking just to sell some of my personal collection and make a few sales. As you mentioned not to fear fees, would it be ideal to sell on eBay or open up a Shopify online store? Or better yet integrate the two stores? With the intent of selling pokemon related items.
I'll cover ebay vs shopify in a video down the line. For me it's an easy choice that isn't close and the answer is ebay. They do so much backend tax compliance stuff and have millions of customers ready for you. I actually kind of did address it if you watched the whole video I think. A good services fees cover themselves. Ebay earns a premium over other platforms
Had a tax question: Do you know if trades are taxable via sales tax? I know for TX where I’m at, they have explicit language for car trade-ins stating only the cash portions are taxed upon sale, but nothing is super clear for other forms of trades. Was wondering what your experience was for this, even if NY laws might be different.
Generally speaking AFAIK the irs requires you to report the fair market value of all bartered items. Searching trade on Google comes up with muddled results but look up irs rules bartering fair market value
@@KetchumAllCollectibles Yeah so… I just googled “Texas” bartering income rules… apparently from the limited info on their website, sales and use tax is due even for bartering/trades. Same thing appears to apply to NY sales tax as well. This could be a pretty big problem for a lot of ppl actually. I know I don’t collect sales tax for any trades.
@@KetchumAllCollectibles I guess I’m more worried about the sales tax portion tbh. Generally, the IRS doesn’t seem to care what you owe your state for sales tax and vice versa. Did you know about the sales tax portion on trades? Or just the income tax portion? Just looking for any kind of information/experience on the subject since even google is super vague on it. Sorry for the repeated questions.
I just filed my taxes yesterday and today I opened a business bank account. Never making that mistake again. Have you made a video on how to do a schedule C?
Try opening a business credit card. I use Amex Blue Business Plus credit card with a 30k limit. You only need your SSN to apply. Don't even need a LLC or a "legit" business. Remember you can still be considered a business without actually being profitable. I buy all my collectibles with this card and just pay the bill on the closing date of my statement. Business cards also don't reflect you credit score you have a separate one for businesses. It really helps out so much. I buy other stuff with it and use the rest of my Amex cards for points (food,travel,Ubers,grocery stores, flights,) I never use my debit card and typically every month the only thing that comes out of my checking account is money that pays my credit card bills. Everything I purchased every month including my rent goes on my credit card. Then whatever is left over after bills I just transfer to my bank account. Granted to do earn between 7-8k a month with my job and my GF makes 4k a month at her job, so stacking money and not spending outside our means is super easy and very beneficial to us.
Last weekend I had a dude message me on one of my eBay listings that he would-meet me (he was in my area i suppose) and do $70 Cash (item was listed for like $90). Not only did I have to remind him that it is against eBay policy to use them to facilitate a sale off-platform, but that my upside would be $0, and his would be $20. People are so stupid.
I think a flat tax would have to be a fair bit higher than 3% to make sense but I haven't looked into it too much. Definitely aware of the concept though. There's almost assuredly better systems out there but I just focus most my energy on optimizing for the system we actually have. It's unlikely to ever change too drastically
Seriously great video. Thanks so much again Dan!
Thanks for watching!
Saved for down the road. Thanks so much
👋 Never sold anything (yet), but I intend to down the road after I learn more and retire from the Army.
Boy, I needed this video. Can't wait for the future videos expanding on this one. Thanks!
Great vid. Can’t wait for next weeks video. Can you include selling vintage childhood cards vs modern cards? Maybe a “receipt” from a yard sale would be better than claiming they are from childhood.
I made a note to include something on this. Next few weeks there will be a bit of a series of videos on reseller taxes so I'll put it where it fits best not sure when that'll end up yet. Thanks for the note.
Great points and fully agree on all. I would like to see more on what reports you run, what analysis you do of your buying on x interval and how you adjust your business accordingly.
Next couple weeks will dive deeper on the mechanics of what I do for taxes. Otherwise it's just a lot of "feel" mostly haha
The timing of this video couldn't be better! As someone who is trying to set up correctly (albeit in a different country), it really reaffirms that I'm taking the right approach now.
Shout-out to my beautiful State of New Mexico! A lot of people from the east coast don't know it exists. Props Dan! Lol
I don't remember what I said about NM but must have used it as a random non NY state 😆
Good viseo. 1 point that I wish was louder: PAY A CPA!
It'll come up in the next couple videos and be more of a focal point. Showing exactly how much money I lost not having taken the optimal steps earlier
I am on that point now. I've been collecting for three years, just paying taxes and stuff. I have 9 sales last year. I'm not yet there but i'm defintitely interested in starting a business in collectibles in a year or two.
The sooner you get your quaxlies in a row you'll be very happy you did later on down the line
@@KetchumAllCollectibles The definition of a business intrigues me always which you mentionned. I'd love to hear more about that. I purchased products three years ago, with the intent of obviously ever selling them but not immediateley and not with the sole purpose of ever selling them with a profit. I purchased it because I liked it. I argue, can you sell anything as a collector? It is not my fault the price went up in those years (in which I have never ever had certain products up for sale). Am I supposed to sell them for the same price as I purchased them for because I'm not allowed to make any gains? That is the side i'm still on, a collector, and that connects to the point that you made again, if you buy anything and make a profit, you are a business, well, im not (yet) but I'm currently just learning about the market slowly and steadily untill I feel I'm ready to eat all those fees and taxes. Love to hear more about everything on the next episode tho! I want to be as transparent as possible myself as well, I believe transparency is the future.
I'd like a full video on the benefits of assuming a "business" role for a hobbiest not really looking for full time income but enjoy the buy/sell/collect fun stuff.
Next couple weeks worth of videos will be primarily business focused but similar applies to collectors who do sell some and might end up profiting (or not even) here and there or at least getting 1099s
@@KetchumAllCollectibles what’s the threshold for a 1099 on eBay, I’ve been selling more lately but not sure of the threshold I haven’t hit the monthly limit
@JediMasterT they've been talking $600 and in some states it has been for a long time . I'd act as if that's the case since you need to report regardless of 1099 or not. Some states before the change though are 200 sales and $20k
Great video, Dan.
Thanks!
Good stuff, always love Dan OFFICIAL tax advice! 😀
🚀
Great content Dan! Thanks for the info and looking forward to the next video!
Thanks for watching!
We use different credit cards versus different accounts for amazon, walmart, eBay, etc.
I love this channel so much.
Thank you 🙏
Dont fear fees!
Embrace and optimize them
I honestly haven’t sold anything but I want to get into it
This video is a good place to start
This video is a good place to start
A breakdown of your system + business model and why it works for you
I've got a lot in my backlog that cover this from all angles and at great depth. Check out "making money in pokemon"
Damn I really thought you were going to say not buying cases of holon phantoms…
👀
@@KetchumAllCollectibles but in all seriousness wouldnt the best practice be to only handle in $250+ slabs and send them all to kac consignment? Uncle Sam who?
@@PokeMartin you may be on to something 👀
First 🎉 happy Monday!
🏆
Get wrecked Ponga
😂
Economic Nexus is a great name for a band
🤣
I’m looking just to sell some of my personal collection and make a few sales. As you mentioned not to fear fees, would it be ideal to sell on eBay or open up a Shopify online store? Or better yet integrate the two stores? With the intent of selling pokemon related items.
I'll cover ebay vs shopify in a video down the line. For me it's an easy choice that isn't close and the answer is ebay. They do so much backend tax compliance stuff and have millions of customers ready for you. I actually kind of did address it if you watched the whole video I think. A good services fees cover themselves. Ebay earns a premium over other platforms
@@KetchumAllCollectibles thank you boss man, that definitly takes the cake! Looking forward to watching more of your videos.
2 words... Crypto BOOM!
🚀
Had a tax question:
Do you know if trades are taxable via sales tax? I know for TX where I’m at, they have explicit language for car trade-ins stating only the cash portions are taxed upon sale, but nothing is super clear for other forms of trades. Was wondering what your experience was for this, even if NY laws might be different.
Generally speaking AFAIK the irs requires you to report the fair market value of all bartered items. Searching trade on Google comes up with muddled results but look up irs rules bartering fair market value
@@KetchumAllCollectibles Yeah so… I just googled “Texas” bartering income rules… apparently from the limited info on their website, sales and use tax is due even for bartering/trades. Same thing appears to apply to NY sales tax as well. This could be a pretty big problem for a lot of ppl actually. I know I don’t collect sales tax for any trades.
@@andrewtobias4545 yeah there's a lot of stuff done improperly in this space and the irs doesn't take ignorance as a valid excuse
@@KetchumAllCollectibles I guess I’m more worried about the sales tax portion tbh. Generally, the IRS doesn’t seem to care what you owe your state for sales tax and vice versa. Did you know about the sales tax portion on trades? Or just the income tax portion?
Just looking for any kind of information/experience on the subject since even google is super vague on it. Sorry for the repeated questions.
I found a NY gov article where it says sales tax is applicable on fair market value of barters as well
I just filed my taxes yesterday and today I opened a business bank account. Never making that mistake again. Have you made a video on how to do a schedule C?
I made a video last year called "tax advice" that breaks it down
Plus the next couple weeks will have some updated ones that get deep on all that. Exactly how to do reseller taxes
Try opening a business credit card. I use Amex Blue Business Plus credit card with a 30k limit. You only need your SSN to apply. Don't even need a LLC or a "legit" business. Remember you can still be considered a business without actually being profitable. I buy all my collectibles with this card and just pay the bill on the closing date of my statement. Business cards also don't reflect you credit score you have a separate one for businesses. It really helps out so much. I buy other stuff with it and use the rest of my Amex cards for points (food,travel,Ubers,grocery stores, flights,) I never use my debit card and typically every month the only thing that comes out of my checking account is money that pays my credit card bills. Everything I purchased every month including my rent goes on my credit card. Then whatever is left over after bills I just transfer to my bank account. Granted to do earn between 7-8k a month with my job and my GF makes 4k a month at her job, so stacking money and not spending outside our means is super easy and very beneficial to us.
@@KetchumAllCollectibles Looking forward to it 🙌🙌
What about selling on TCG player? Your thoughts?
I might do it again at some point and I'll make a video if so. Currently not really using them
Last weekend I had a dude message me on one of my eBay listings that he would-meet me (he was in my area i suppose) and do $70 Cash (item was listed for like $90).
Not only did I have to remind him that it is against eBay policy to use them to facilitate a sale off-platform, but that my upside would be $0, and his would be $20.
People are so stupid.
But you're saving fees!
You're making a sale. That's an upside.
@@kennethsmith5309 lol
How do you become legitimate business owner
Watch the whole video
First
Well that was a lie
I question why we are being taxed in the first place. I think a flat tax of 3% sounds way simpler.
I think a flat tax would have to be a fair bit higher than 3% to make sense but I haven't looked into it too much. Definitely aware of the concept though. There's almost assuredly better systems out there but I just focus most my energy on optimizing for the system we actually have. It's unlikely to ever change too drastically