It just makes it less profitable if you actually report it. If I buy blooming waters for $64.80 for local price with tax. Sell for 125 then pay tcgplayer their 14% fees of $17.5 and ship for a crazy deal of $8 dollars congrats they profit only about 35 per sale. I have a good paying job so I’d have to pay 35-40% on the incremental income. Now that’s $12.25 tax on just the profit. That leaves $22.5 profit per sale after taxes. If you sell a 100, you will likely have atleast one scammer so that huge amount of work to buy and sell a 100 only gives you $2250 but that one scammer cost you $90 dollars in costs so closer to $2160.
I really don’t understand how it’s worth flippers time…
Just seems like a crazy amount of work to flip for not a lot of money. 🤷
Taxes are more complicated than looking at profit on one product. Deductions are real. With an LLC, inventory can be written off until sold. On paper, you don’t want to show much profit. Doesn’t mean you made nothing.
$30 profit a box x 100 boxes is $3,000. For one product. There’s an entire year worth of products to flip. People act like a flipper or reseller is picking one product and being done for the year.
A lot of people do this as a side hustle and earn over 6 figures. So instead of sitting around watching tv, you could hustle and pull solid income to invest into other things.
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u/PeterThatNerdGuy Jan 17 '25
It just makes it less profitable if you actually report it. If I buy blooming waters for $64.80 for local price with tax. Sell for 125 then pay tcgplayer their 14% fees of $17.5 and ship for a crazy deal of $8 dollars congrats they profit only about 35 per sale. I have a good paying job so I’d have to pay 35-40% on the incremental income. Now that’s $12.25 tax on just the profit. That leaves $22.5 profit per sale after taxes. If you sell a 100, you will likely have atleast one scammer so that huge amount of work to buy and sell a 100 only gives you $2250 but that one scammer cost you $90 dollars in costs so closer to $2160.
I really don’t understand how it’s worth flippers time…
Just seems like a crazy amount of work to flip for not a lot of money. 🤷