All sellers I spoke to say total sales on their dashboard as well as my own have been deleted at or about the end of July 2021 when most managed payments were in effect. Mine only shows sales from my first month of managed payments to present day. I found it coincidental that ebay stock began its drop around the 1st of november 2021 when most folks would have hit their 20k mark and took the rest of the year off. Has continued to drop to present day. There are several tax repeal acts currently active that will probably move it back to previous limits of 20k with a few pushing 5k by end of year as they did in April 2011 when same issues came up and Obama brought it back to 20k as well. They will save this move as a political bargaining chip for november as usual........no biggie.
Well, I’m not counting on it and my vinyl collection is growing. Which I don’t see as a problem because premium vinyl will be desirable for the near future.
It looks like the new focus is on $100k+ earners. And in the lowest bracket, the overwhelming majority appears to be people claiming the EITC. Millions of casual sellers will be getting the new form next year along with lower income contract workers, etc. It only took a few weeks or so so of listing previous impulse buying sprees hit the $600 mark. I got to the point where I got tired of having more physical media than I really needed and need to focus on getting rid of more.
It's all my fault. I decided to finally deal with decades of horde and they passed this law. Sorry everyone.
Funny that they aren't going after the Jeff Bezos or Elon Musks. Tax enforcement is absolutely biased against those who cannot defend themselves in tax court.
When I delete emails from pp, including banking into that I have elsewhere, I always keep those "New Order - Order #123456" emails from Discogs so that I have a printable invoice for the odd case where Discogs lost my sales records, or I accidentally deleted a few. My suggestion has always been to compile a 3-ring binder with all orders in it and keep it current for ease of tax filing later. I've not exactly followed my own advice on this one. But I am getting ready to do the big printout for my binder and have everything good and ready.
Interestingly - I look a the "highest paid prices in May" on discogs. It dropped to really peanuts, something in $100-200 range and mostly boxes sold at retail. So I wonder if more expensive records now settled outside of discogs...
I agree, but for me May is usually fine it's a June dip. There are exceptions as well. I also did very well during the summer months of cv-19 when everyone was staying home.
We've been in a recession, stock market is down over 20%, inflation has food up on average 20% (I've seen items as much as 50% more), rents are at all time highs, combined with very high gas prices (one of my partners said costs him $150 to fill up his 3 row SUV), everyone I know has drastically cut down on their unneeded expenses. My mom sent me a text saying their Super Center Walmart was basically empty when she went there in prime hours. I will be very interested to see how Walmart, Amazon, Ebay, Netflix, etc do in their next quarterly report. My prediction is it's going to be a bloodbath for them.
Perhaps you correct on most points, but people who before were buying $3000 records are not the ones who will suffer from higher gas prices…
Walmart I suspect will do fine, as they are a different animal from the others you mention. They like Target market in essentials at lowest prices, and Amazon and eBay market in things that are wanted but not particularly needed. Netflix are losing subscribers in recent quarters and it's not due to recession, but competition, and having a large number of waters during covid which propped up their revenue only temporarily. So these retail categories are very different and I expect different outcomes in the near future of cutbacks from consumers. I actually plan on a trip to Wally World soon as I need to pick up a few things. I always end up spending at least $100 every time I walk in the door. It's not super close to me, so I only go twice a year at most. The last few times I forget to look at the vinyl section. Anyway, I am cutting back on many things. I saw prices at one lower-price store go from $1.00 to $1.49 and $1.99 on some items. A 50% or 100% price hike is insulting. But anyway, I do recall that from the last bad downturn around 10 years ago, is that the nicer lower-priced CDs and Vinyl will still sell. The music market does not die out completely. The rich still buy some big tickets, and the not-so-rich will still buy the cheaper but good deals. I still have some nice stock as well as more common stuff that is in nice condition and good strong titles. I expect to sell plenty so long as my prices are not higher than others' asking prices.
I did my printout today of all Discogs transactions from two accounts, and then put them into a 3-ring binger all in order with most recent on top. I'm going to work on the Excel spreadsheet as previously mentioned over the weeks and months ahead. I will add columns for: DATE - ITEM or BUYER - PRICE - SHIPPING - STATE TAX - FEES - PP FEES - POSTAGE COST - PURCHASE - MY COST OF ITEM - PROFIT Then just fill in the first three columns on all transactions, then later the next couple, etc. Within a couple of months I'll have it all entered in. Oh, and I need a column for extra expenses on certain items, when one needs to send out a replacement, or some added postage expense comes into play, it happens. All expenses should be deducted, and final profit at end of transaction. Anyway, I'd planned to get this going on Jan. 1st, and now look its the end of July and I am finally getting it started. Everyone, don't wait until April 11th to get your house in order, no fun to be struggling with bookkeeping with tax time looming just in case this does not get over-turned in a nick of time.
If you sell something on Discogs and get paid through PayPal, what you actually receive is of course less than what the buyer pays. So there’s a “purchase total”, which includes your item price, the shipping fee you charge, and sales tax. This is what the buyer paid. And then there’s what you actually net, which is the above minus PayPal’s cut, Discogs’ selling fee, and the sales tax. So in tallying up what counts toward the $600 limit to determine whether a 1099-K gets issued or not, is it the purchase total, your proceeds net of fees and sales tax, or something in between that gets tallied up? Curious if anyone knows for sure.
What exactly ends up in your PayPal account I would expect. If $100 was sent to you and PP took $4.00 of it, then I would think $96.00 counts toward your $600 limit. But to be on the safe side, I would shut my sales down at $590 total (including pp fees) if I was avoiding the 1099. I'm way over the limit and getting the 1099. I've been printing out every transaction sheet. Then I have written the Discogs fee charged on the lower right corner of the printed invoice page. Then 3-hole punch and into this big black binder that I have. Next, I'll write the PP fees in lower left corner, and then begin to fill in my spreadsheet later. Thanks for the reminder, I need to get on that. I want it all in very good order by Dec. 31. I have a few transactions that are total losses. I had to refund an order here or there and take a return. I also spent more on shipping for many orders than the customer paid. I gave free insurance on higher priced items that I did not want to risk losing to an Apt. address, or whathaveyou. I sold an $850.00 order ($950 with sales tax). But I insured it for $200 just so I had some protection. That big order was $4.95 total charged for shipping yet I paid much more with the insurance on it. So I need to deduct every penny where I spent money to get an order out. Anyway, I suggest everyone get their books in order now. Print out PP transaction sheets if you don't have anything else to go with them. Or if you have a mix of PP and Discogs invoices in chronological order.
Although, I am going to stay under $600, as the work to keep tabs on Profit and Losses, not to mention if selling Older items where I no longer have proof of what I had paid for those certain items is just not worth the extra time and hassle, I am curious that if a Seller makes a Refund for any reason, does the Original Sale still count towards the $600 limit, or is it deducted from your total in sales because you sent back the original payment?
It actually doesn't matter, because either way you still have to deduct postage, shipping supplies, etc.. So if you keep good records you will know exactly what is expense and what is profit at the end of the year and file accordingly.
Whatever you spent on shipping is expense. That gets deducted. What you advertise as merchandise cost and what is shipping cost is irrelevant as far as I know. If I may go slightly off topic, I have to comment on the idea of giving the customer "free insurance". When I sell something, I take full responsibility for it getting to the customer. Exactly twice I've had to give refunds due to shipping issues. Once a seller gave me a refund for something I received damaged. So how is a seller "giving" free insurance? Even better, how do some sellers get their customers to pay for insurance? If I make a sale bigger than I wish to risk eating, I buy insurance for it. That insurance is an expense on my ledger.[/QUOTE]
I don’t offer free insurance or shipping. I try to keep my prices competitive by comparing listings for similar items and their total price with shipping. Don’t forget to keep a mileage log for trips to the post office when shipping items sold. That is a legitimate deduction.
I don't "offer" the free insurance, I simply pay for it at the post office (on just certain items) without mentioning it to the buyer unless asked or there is a problem. I am sending out many orders lately in the $100 - $300 price ranges, with one order hitting $950.00 recently. So it's just an expense I accrue when dealing with pricey items, and I am grateful for the large ticket sales. Those insurance add-ons are pushing my shipping funds/expenses into the red on some or many orders lately. And I do make a profit on shipping for a lot of other orders. I think if you sold a big box set for $190, you would throw on at least $100 of coverage on that item (paid for by you). I know I sleep a lot better knowing it's not going to disappear into a black hole with tracking saying it never moved beyond Philadelipha.
[/QUOTE] All costs are relevant and are logged in the books accourdingly, both merch and shipping have costs associated. But I never advertise them.
