ewetwo Posted July 12, 2021 Share Posted July 12, 2021 (edited) If you were going to liquidate your model collection and supplies. How would you do it? If you make over $600 on Ebay or through PayPal. They report it to the IRS and you are sent a 1099-K and you have to pay taxes on that. This was originally explained to me by a person who will now only except money orders as payment. So how would you sell it. Would you sell kit by kit or as a whole. Pictures. Would you take photos of the models put together in groups of model brand. All AMTs in one photo. Revells in another. Trumpeters in another? Or take photos in groups such as Chevys one photo. Fords another. Oldsmobiles in another. Supplies. All jar paints in one photo. Spray paints in another. Equipment such as air brushes in one photo. Paint shaker in another? Or a photo of all equipment together. Wall display cases. I would sell it as pick up only because there would be way too much to pack and ship. Over 400 kits. Plus everything else. Figuring a price. Most kits $10 and the more rare ones such as Trumpeters, Johans, half of what they sell for on Ebay? I know I'll be losing money but that's to be expected. Appreciate any advice. Edited July 12, 2021 by ewetwo Quote Link to comment Share on other sites More sharing options...
webestang Posted July 12, 2021 Share Posted July 12, 2021 $600......? I thought it was $20k...... From Turbo Tax..... If you make more than $20,000 in gross sales and have 200 or more transactions on eBay, you should receive a 1099-K form reporting this income to the IRS. I've sold more than $3000 on E-Bay in one year and did not have to pay taxes. 1 Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 12, 2021 Author Share Posted July 12, 2021 (edited) Here's an article about it. The man who told me about it got surprised when he received the 1099-K. https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html Edited July 12, 2021 by ewetwo Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 12, 2021 Author Share Posted July 12, 2021 And I bet Facebook Marketplace will be next as they ask you if your item sold. Was it through Facebook. Quote Link to comment Share on other sites More sharing options...
MrMiles Posted July 12, 2021 Share Posted July 12, 2021 i am not sure i would want to sell a kit by kit of my collection, i have too many and it would be quite an undertaking. however, there are several sites that buy collections. i am not sure if you would get the money you would like by selling it this way. i would imagine selling it as 1 by 1 would bring more than 10 per kit Quote Link to comment Share on other sites More sharing options...
Bucky Posted July 12, 2021 Share Posted July 12, 2021 I'm thinking that selling individual items, whether it be a kit, tools, or supplies, would bring in more money. Depending on the size of the stash, and the quantity of supplies and tools, it would be quite an undertaking, and would take a while to accomplish a complete liquidation. Selling in this manner might possibly generate a steady income for a little while. I sold well over $1000 worth of kits in 2020, one at a time, which helped me finance needed repairs to our old house so that we could sell and move into our new house. I didn't receive anything from eBay. I also offered items for sale on a couple forums that allow such activities, and was able to complete a few deals that way. Sometimes, though, the auction sites may get you a higher price than trying to sell on a forum. Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 12, 2021 Author Share Posted July 12, 2021 (edited) Thank you Mr. Miles and Keith Buckner. That might be just the way to do it. Kit by Kit. Edited July 12, 2021 by ewetwo Quote Link to comment Share on other sites More sharing options...
Tom Geiger Posted July 12, 2021 Share Posted July 12, 2021 David, there are swap meets up your way where you could set up a table and undersell the regular dealers. At end of show offer the remains to the dealers. contact Joe Felber or John Papp for details in the action in your area Quote Link to comment Share on other sites More sharing options...
Snake45 Posted July 12, 2021 Share Posted July 12, 2021 You have my email and know what I like. Drop me an email with a list of anything you think might interest me and we'll talk, old friend. Quote Link to comment Share on other sites More sharing options...
SCRWDRVR Posted July 12, 2021 Share Posted July 12, 2021 Times like these I wish we were aloud to sell here and would love to see what your selling but anyway, I do think you would get a lot more selling it off piece by piece rather than as a lot... Quote Link to comment Share on other sites More sharing options...
vamach1 Posted July 12, 2021 Share Posted July 12, 2021 Any miscellaneous income over $600 is supposed to be reported to the IRS voluntarily via your 1040 tax return you file. However, if you bought the kits for $500 and sold them for $600 your income was really only $100 but Ebay would have not way of knowing how much was your original cost. You can alway report the 1099 income on a Schedule C and deduct your expenses so you do not have to pay very much if any income tax or self employment tax on the gross sales reported to the IRS on the 1099. If you sold a few thousand dollars of models as a collector or hobbyist one time you probably hav nothing to worry about. If you sell $20K a year that is a whole different situation and the tax man may want to see some records for your side business. Quote Link to comment Share on other sites More sharing options...
larman Posted July 12, 2021 Share Posted July 12, 2021 Most likely you will get more selling individual models vs selling the lot to a dealer,etc. But, you will work harder for it. Selling individual items will mean either taking them to shows (loading/unloading, sitting there all day) or selling on eBay (or similar) this takes a lot of time and costs money. There is no guarantee you will sell it all. If you can get a dealer to give you $10 a kit and you have 400 kits, that's 4k in your pocket and they deal with all the previously mentioned. If you go that route you will have to give up some profit on better stuff, but you will probably be sneaking in some duds too, like Nascar or C4 Corvettes. Quote Link to comment Share on other sites More sharing options...
slusher Posted July 12, 2021 Share Posted July 12, 2021 David, think about your decision if your getting out. It will cost mor to get back in. Pm me I will give you my email address you might have a couple I might want. Quote Link to comment Share on other sites More sharing options...
Fat Brian Posted July 12, 2021 Share Posted July 12, 2021 You have to weigh the potential return versus the potential hassle. Personally, if I am ever in a situation where I need to sell all my stuff my plan is to put my rare/old/valuable stuff on ebay to maximize my returns on that stuff. That's maybe 15-20% of my stuff max. The rest will be sold in a lot or lots and I'll probably take a bath on it but if I'm selling out the situation is pretty dire and I need cash in hand. Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 13, 2021 Author Share Posted July 13, 2021 Ok guys. I’ll try to figure out what to do. To list everything will be a task in itself. I have a lot of average kits. That’s why I say $10 kits. But I’m sure you all have the same kits. I’m not sick or getting a divorce or anything. Just realizing I’m 66 and no one in my family is interested it my hobby. Quote Link to comment Share on other sites More sharing options...
SCRWDRVR Posted July 13, 2021 Share Posted July 13, 2021 10 minutes ago, ewetwo said: Ok guys. I’ll try to figure out what to do. To list everything will be a task in itself. I have a lot of average kits. That’s why I say $10 kits. But I’m sure you all have the same kits. I’m not sick or getting a divorce or anything. Just realizing I’m 66 and no one in my family is interested it my hobby. I'm glad to hear your not sick or anything I'm a bit younger than you but understand the nobody in my family is into the hobby, I don't even know anyone locally at all that is in to it. You could take pictures of them might be easier then listing and sometimes that common kit is just what someone is looking for,,,, Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 13, 2021 Author Share Posted July 13, 2021 1 minute ago, SCRWDRVR said: I'm glad to hear your not sick or anything I'm a bit younger than you but understand the nobody in my family is into the hobby, I don't even know anyone locally at all that is in to it. You could take pictures of them might be easier then listing and sometimes that common kit is just what someone is looking for,,,, I know of 2 other builders in my area but they are not in the ability to buy an entire collection, and they would only offer me 2 or 3 dollars per kit. Quote Link to comment Share on other sites More sharing options...
SCRWDRVR Posted July 13, 2021 Share Posted July 13, 2021 Just now, ewetwo said: I know of 2 other builders in my area but they are not in the ability to buy an entire collection, and they would only offer me 2 or 3 dollars per kit. Yeah that is no where near enough.... Quote Link to comment Share on other sites More sharing options...
Muncie Posted July 13, 2021 Share Posted July 13, 2021 19 minutes ago, ewetwo said: Ok guys. I’ll try to figure out what to do. To list everything will be a task in itself. I have a lot of average kits. That’s why I say $10 kits. But I’m sure you all have the same kits. I’m not sick or getting a divorce or anything. Just realizing I’m 66 and no one in my family is interested it my hobby. Except you? definitely keep some of the favorites and all of the tools. There are a couple of shops near(?) here that get most of their model car inventory from collections. I doubt that they pay much but they do have to cover their overhead and rent. On the selling side, they do charge reasonable prices. Both say they need more model cars but most of the available collections are airplanes, more airplanes, and still more airplanes. They also buy/sell hobby related books and magazines. Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 13, 2021 Author Share Posted July 13, 2021 12 minutes ago, SCRWDRVR said: Yeah that is no where near enough.... Right Brian. Quote Link to comment Share on other sites More sharing options...
webestang Posted July 13, 2021 Share Posted July 13, 2021 23 hours ago, ewetwo said: Here's an article about it. The man who told me about it got surprised when he received the 1099-K. https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html Interesting. I too would be surprised. Good luck with selling the kits. Quote Link to comment Share on other sites More sharing options...
Tom Geiger Posted July 13, 2021 Share Posted July 13, 2021 I've thought about this topic a lot over the past few years. I've watched people retire over the years and sell off their collections. Some moved to smaller quarters, others just sold out of that same reason you gave, to dispose of it so the family won't have to deal with it later. I'm 62 and am hopefully looking at a long retirement. For the folks who sold off everything... now what? Are you going to sit around and watch daytime TV with the wife? I'm hoping to spend my time building a lot of models! I got a free preview of retirement the past year or so with Covid, and ya know what? I got more models done than at any other time in my life! So I think model building will be a major part of my retirement. Why would I sell everything? What I have done is that I stopped saving things for the future. I have kits, decals, after market parts etc that I had tucked away for some future killer project. I've decided that the time is now! So I dig into those precious supplies and enjoy using them on a model. I found I had a dozen 1950 Ford pickup kits... so I dumped all the unsealed ones into a big tub. I enjoy building that kit and now I can experiment without worrying about destroying a part. I have many of each part. And if I want a part for something I am building, I don't hesitate taking it out of a new kit on my shelf. I will put a note in the box, "took carb and wheels", but having that part on my new project sure beats the $10 sale someday! The end game? Someday I will die. There may be a time when my health deteriorates and I can no longer work at this hobby. That's when I will sell it off. But I'm hoping that I can enjoy the collection I've built over my lifetime for the rest of my days. And when I go to the big junkyard in the sky, my wife has the names of a few trusted friends and dealers. So David, everyone must decide what's best for themselves. I just wanted to share my perspective. I trust you will choose wisely. 2 Quote Link to comment Share on other sites More sharing options...
ewetwo Posted July 14, 2021 Author Share Posted July 14, 2021 All good input. I'm re-thinking my plan. Thank you all. 🙂 Quote Link to comment Share on other sites More sharing options...
Rick L Posted July 14, 2021 Share Posted July 14, 2021 Craigslist. Quote Link to comment Share on other sites More sharing options...
cobraman Posted July 15, 2021 Share Posted July 15, 2021 I think I like your plan Tom. Quote Link to comment Share on other sites More sharing options...
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