After you sell a knife

justold52 · Post by **justold52** » Fri Aug 03, 2007 10:03 pm

I SOLD a knife in my wifey's yard sale....

She was made in CHINA....

"Remington Green Smooth Bone Muskrat 4" Cost $7.50, Shipping $4.50
"SOLD $17.00"...

Profit $5.00.

OK now do you all save this info in your records ?

Or do you just DELETE it from you recordes ?????

WHAY TO DO.....AND WHY ...

remington collector · Post by **remington collector** » Sat Aug 04, 2007 1:00 am

By rights, you need to keep this info on file. That way you can pay taxes on the $5.00 profit. You do pay taxes on the profit????

olderdogs1 · Post by **olderdogs1** » Sat Aug 04, 2007 1:24 am

It seems to me that you all are not taking everything into account. That might seem like a 5 dollar profit but you have to deduct your expenses. You have your costs in acquiring the knife. You have to pay your wife to work at the sale displaying the knife.

You have probably bought some simichrome to clean it, that alone might wipe out the 5 dollars.

I am sure your wife would get a commission for selling it. Plus your educational trip to learn more about knives should be deductible.

I think you may have less profit than you think once you deduct all of the related expenses.

JMO.Tom

MITCH RAPP · Post by **MITCH RAPP** » Sat Aug 04, 2007 2:33 am

remington collector wrote:By rights, you need to keep this info on file. That way you can pay taxes on the $5.00 profit. You do pay taxes on the profit????

How much Tax should he pay?

justold52 · Post by **justold52** » Sat Aug 04, 2007 10:13 am

remington collector wrote:By rights, you need to keep this info on file. That way you can pay taxes on the $5.00 profit. You do pay taxes on the profit????

YUPPERS I do pay a high tax on income...

Getting close to 45%.

Where do you list your profit on a knife ???? What form ???

You may Laugh but I wish I had to pay 50% tax on my income....

Just think of how much money I would have left to spend...

justold52 · Post by **justold52** » Sat Aug 04, 2007 10:32 am

olderdogs1 wrote:It seems to me that you all are not taking everything into account. That might seem like a 5 dollar profit but you have to deduct your expenses. You have your costs in acquiring the knife. You have to pay your wife to work at the sale displaying the knife. You have probably bought some simichrome to clean it, that alone might wipe out the 5 dollars. I am sure your wife would get a commission for selling it. Plus your educational trip to learn more about knives should be deductible. I think you may have less profit than you think once you deduct all of the related expenses.
JMO.Tom

1. costs in acquiring
2. pay your wife
3. simichrome to clean it
4. ren-wax this China made knife too...

5. educational trip to the Queens Knife Show
6. Paper add for the yard sale
7. storage
8. air conditioning to preserve her
9. sectary cost logging records
10. Time spent at AAPK learning not to buy a knife made in CHINA

MITCH RAPP I think Uncle Sam owes me money now...

thank you all for pointing out this good stuff.

justold52 · Post by **justold52** » Sat Aug 04, 2007 10:52 pm

Just sold a Remington MOP Sowbelly Stockman $26.50.
In the yard sale.
I made $5.00 on her too.

That's 2 less CHINA knives at my house....

I have been thinking of all the help you give me for free.

After much thinking, I have come to the conclusion to just DELETE all I have on a knife after selling it, And let UNCLE SAM keep the money he owes me....

My account would cost me more than its worth to fill out that form.

Hukk · Post by **Hukk** » Sat Aug 04, 2007 11:27 pm

I'm not sure that a garage sale is taxable event. My daughter checked into getting an eBay store and she was told that stores had tax consequences but that general listings without a store were not taxable, that they were regarded as garage sales. I've never had a tax or earnings statement from eBay.

My dad is a retired Vice President of Private Banking from Bank of America for nearly 10 years now and has a similar view, but he has not looked into it. I guess I should say he is semi-retired, he does a lot of work on a consultant basis for First Republic. When a loan is sizeable, 1 million plus I think it was, the loan needs to go through a review process from an outside source. That's where my dad comes in, he gets the loan mailed from FEDEX and goes through it and makes recommendations to First Republic when sending it back.

He has a degree in Business as well as accounting. He also went to a school that H&R Block has (said it was harder than college

). Initially he was going to do taxes for elderly shut ins.

He ended up with First Republic, because it's less work and it's analysis, something he likes to do plus he gets VERY well compensated.

remington collector · Sun Aug 05, 2007 12:14 pm

I feel sure that if you are selling knives or any other items at a profit, you are required to pay taxes on the profit, regardless if you are selling at a knife show, yard sale or ebay. I personally don't know the form or line number but I bet my CPA does.

justold52 · Post by **justold52** » Sun Aug 05, 2007 2:21 pm

remington collector my CPA charges me $50.00 just for a phone call.
I am not a dealer. I just want to get rid of the errors I made when I started collecting. If you noted they are China made knives that I sold.

I under stand your concern to do things the right way.
I fell the same way.
If I were a dealer and selling more knives to make a profit I would pay tax on the profit. That is the American way. Just as all the congress men do....

I just was so happy to let go of 2 CHINA knives that I started this post.
And wanted some feedback on what others here do with a record after sold one knife.

I do want to thank you for your feed back too.