What's percent or fees for doing a service on other people's coins...

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Sure there is. If he's not earning a profit, he won't have to pay any tax.

To be fully compliant, he should save all receipts and report the purchases and sales to the IRS. I'm not a bean counter, but I do think his being paid for listing and selling items for friends and family would be separate from his personal buying and selling activities, so he wouldn't be able to use any losses from the latter to offset any profits from the former.

 

Taxes concerns are becoming a thing of the past. Here in CA we are now charged taxes on all internet purchases, sales, or anything, automatically. I wouldn't worry about it myself. The way I see it, when the state decides they want the tax revenue from the few dollars you might make, they'll take it, like they did here.
Guy

 

I was just told by my accountant, that I should get an Employer ID Number (EIN) from the IRS and maybe some state tax IDs (http://www.sba.gov/content/obtain-your-federal-business-tax-id-ein). Ughh...what a headache, just for a measly profit over the course of an entire year. Maybe this is partly why Ebay coin sales pickup drastically toward the end of the year. Collectors/Sellers trying to buy more inventory, thus decreasing their apparent profits (=tax burden).

 

Exactly, there is no legal way to avoid the taxes. Truly, they will not be very much for you and it is quite a bit better to simply pay them than to be audited because of your PayPal tracks through ebay.

 

I'm a full-time coin dealer and can tell you that when you buy inventory that it does not decrease your apparent profit. Don't make that mistake.

 

Blaubart makes some great points that many folks do not address until it is too late. Do you have insurance for the coins while in your possession? How will you resolve any PayPal dispute when funds might be frozen?

 

20% of the price the item sells for, the rest goes to them.

 

Sorry for being fall behind to reply back. I appreciate your inputs. Regarding to tax, I am fortunately to have CPA who know ASL (America Sign Language). I was able to communicate with him and fully understand on the requirement for tax report and refund. I think the more you know about IRS' strict policies, the more comfortable you will be. As other said, keep track of all sales and you will be fine. Only new information from eBay that I learned recently is they do charge separate fee for shipping cost that I got from buyer. I pay two fees for final end cost and shipping cost. I think it's ridiculously, but IRS made their decision on that one. I guess IRS being picky and feel that many people use shipping cost to cover their expense and more. However, both fees can be use in IRS report to reduce total cost to pay IRS.

 

Have the person who consigns you to sell their items pay all eBay and PayPal fees. You can deduct those fees from their end of what you receive.

But your percentage is from the sale price.

Example: You sell their item for $200. Your commission is on the $200.

 

Absolutely. I have a written agreement, that the item is theirs until it is received by the Buyer. I do not have insurance on their items held in my home, but their total value is pretty miniscule. Luckily, I've only sold for friends who would not screw me. Your ideas are well taken. Thanks.