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Originally posted by MTDetermine:
Firstly, I started off as a player, progressing to collector and still view myself as a collector, though others are free to pass their own judgment.

Second, depending on how you do the accounts, on at least the government mode of accounting, I should still be making losses..........The wonders of accounting =p

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I didn't report a loss of 600 dollars when I bought my television, just like I woudln't report earnings of 200 dollars when I sold it, used, on Craigslist.

Just because the Magic secondary market allows for profits on the resale of assets doesn't actually make it a business or earnings unless you're lisenced as such.

Buy the example you provide, this is considered liquidation of material assets and is therefore not count as earnings.

I think the irs would disagree with you not reporting 1920 as income.

But I could be wrong.

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Originally posted by Devonin:
Except that the liquidation of assets doesn't count as earnings, because you're converting an asset from a material possession to liquid cash.

I didn't report a loss of 600 dollars when I bought my television, just like I woudln't report earnings of 200 dollars when I sold it, used, on Craigslist.

Just because the Magic secondary market allows for profits on the resale of assets doesn't actually make it a business or earnings unless you're lisenced as such.

eBay, the IRS and sneaky financial business not withstanding, the above comes from both being in a situation where I needed to report my full financial details to a Canadian government organization and having them tell me that selling personal assets didn't count as income, and having a CA for a brother-in-law who also says that such sales aren't counted as income when filing income taxes.

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Originally posted by djcards:
Using your tv example then. What does the government say when you buy your tv for 500, then sell it for 600. Lets say the reason you are able to sell it for 600 is because you agreed to meet the buyer, and have to spend 20 in gas to get to the meeting place. Lets then assume that you do this type of transaction 2x a month.

Buy the example you provide, this is considered liquidation of material assets and is therefore not count as earnings.

I think the irs would disagree with you not reporting 1920 as income.

But I could be wrong.

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For Canadians, there is a $1000 rule for selling personal use property.

http://blog.taxresource.ca/is-there-tax-when-i-sell-personal-property/

__________________
MOTL Fantasy NBA 2010 Champion

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Originally posted by djcards:
Using your tv example then. What does the government say when you buy your tv for 500, then sell it for 600. Lets say the reason you are able to sell it for 600 is because you agreed to meet the buyer, and have to spend 20 in gas to get to the meeting place. Lets then assume that you do this type of transaction 2x a month.

Buy the example you provide, this is considered liquidation of material assets and is therefore not count as earnings.

I think the irs would disagree with you not reporting 1920 as income.

But I could be wrong.

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You are buying tvs for resale isn't a material asset. IF you are buying lots of tv as assets and selling them that way, the IRS will bend you over when they find out.

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Originally posted by davef139:
You are buying tvs for resale isn't a material asset. IF you are buying lots of tv as assets and selling them that way, the IRS will bend you over when they find out.

Trying to deduct mileage is the biggest red flag for the irs there is.

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Originally posted by stu55:

I am an accountant too, that but the amount of buying you do and I assume selling, you still have to declare gains, no matter how small because if your government does audit you, I am sure you have a lot of explaining to do on not declaring any taxes

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Correct, except that locally, income earned overseas and not brought home are exempted from tax (different from USA that taxes world-wide income).