Why does Emazers buy 40-50 sets or more of one set!!!!!!!

[boliramirez]

If he bought an item for one price and then sold it for a higher price, he has to pay tax on that sale.  Although he can use expenses to reduce his taxes, if he's conducting business as a sole proprietor (which it sounds like he is), he cannot create a fictional salary based on the amount of time he devoted to the business and then deduct that as an expense.

 

The reason that I focused on the tax issue is because of the number of common misconceptions that float around on discussions like this.  Like...if you stay under $20k in sales & 200 transactions per year, you don't have to report the income you made on your sales and don't have to pay taxes on those sales.  If you stay under those thresholds, you may not have your transactions reported by a third party (i.e., paypal) to the IRS, but you still have a legal obligation to report the transactions and pay the taxes.

 

 

 

I am just shooting in the dark Pacific493, but I guess you should have way more important things to do, other than pointing fingers or giving lesson to already educated people, in a HOBBY forum........pay your taxes and leave the man alone......

[redcell]

I am just shooting in the dark Pacific493, but I guess you should have way more important things to do, other than pointing fingers or giving lesson to already educated people, in a HOBBY forum........pay your taxes and leave the man alone......

 

I would be surprised if most people here didn't have way more important things to be doing than hanging out on this forum during the day.  I do pay my taxes and the reason that I brought this issue up in this forum is that a lot of people here seem to look up to Emazers and I think that his post might reinforce the misperception that the $20k/200 transaction threshold is a threshold for the taxability of the transactions, rather than the reporting of the transactions.  And I was not attacking him...I was just asking a question.

[DoNotInsertIntoMouth]

So are you not reporting the income that you're generating from your Lego sales or paying taxes on that income?  The $20k/200 transaction reporting limit is only a relevant consideration if you're trying to avoid paying taxes.

 

 

I would be surprised if most people here didn't have way more important things to be doing than hanging out on this forum during the day.  I do pay my taxes and the reason that I brought this issue up in this forum is that a lot of people here seem to look up to Emazers and I think that his post might reinforce the misperception that the $20k/200 transaction threshold is a threshold for the taxability of the transactions, rather than the reporting of the transactions.  And I was not attacking him...I was just asking a question.

 

Thats fine, except look at the way you phrased it. You said it like - I know you aren't, I am being sarcastic. All anyone asks is for a little respect. No need to call someone out. Its a legitimate question and discussion.

 

Just be more respectful.

[Ed Mack]

I am just shooting in the dark Pacific493, but I guess you should have way more important things to do, other than pointing fingers or giving lesson to already educated people, in a HOBBY forum........pay your taxes and leave the man alone......

I disagree.  This is more than a hobby forum.  It's a forum about LEGO bricks...yes, but it is also about making money.  When you make money, you have to pay taxes.  Some members falsely believe that the PayPal 200/$20,000 is the threshold for reporting profits to the IRS.  It is not.  Pacific493 was just clarifying the topic for members.

[Fcbarcelona101]

Seriously, if anyone is willing to leave a place of discussion because they feel "attacked" they need to grow thicker skin. If you read his posts, you'll notice that Ed really does not care about what people may think about him or his way of doing things. People other than him are the ones that get worked up. Someone that has been "in business" for several years is used to people disagreeing with him.

He has the right not to answer any question, but members also have the right to ask them.

[Pirate]

emazers has made it abundantly clear in his time posting here that his goal is to stay under the 200/20k limit so as to avoid being forced to pay taxes on his sales, and therefore publicly outing himself as a likely tax cheat.  That rubs many people playing by the rules the wrong way.  Do you people not expect others to make comments challenging him on this???

[redcell]

Thats fine, except look at the way you phrased it. You said it like - I know you aren't, I am being sarcastic. All anyone asks is for a little respect. No need to call someone out. Its a legitimate question and discussion.

 

Just be more respectful.

 

While you may have read my question to be phrased in a sarcastic way, it was not intended to be.  I was simply asking whether the clear implication of his statement was accurate.  And if that implication was accurate and he is, in fact, trying to stay under the reporting threshold for the purpose of avoiding paying taxes, I would most certainly call him out for that...not out of fealty to the tax collectors, but because it sets a bad example for all of the folks here who are just starting out and just starting to think about the issue of taxes.  If people walk away thinking "hey, if someone like him is not paying taxes on these sales, then maybe I don't have to as well," that's dangerous because it could cause them to get into a whole lot of trouble down the road.

[DoNotInsertIntoMouth]

Seriously, if anyone is willing to leave a place of discussion because they feel "attacked" they need to grow thicker skin. If you read his posts, you'll notice that Ed really does not care about what people may think about him or his way of doing things. People other than him are the ones that get worked up. Someone that has been "in business" for several years is used to people disagreeing with him.

He has the right not to answer any question, but members also have the right to ask them.

 

 

Again, thats fine. there is just a more respectful way to do it. The discussion is fine, just keep from publicly throwing people under a bus. Be the bigger person for once.

 

emazers has made it abundantly clear in his time posting here that his goal is to stay under the 200/20k limit so as to avoid being forced to pay taxes on his sales, and therefore publicly outing himself as a likely tax cheat.  That rubs many people playing by the rules the wrong way.  Do you people not expect others to make comments challenging him on this???

 

Educating others is fine. just don't see the need to kill someone on the forum for what they do when you don't know everything involved.

 

Moderators will delete any comments that push the boundaries of morality, so let them handle it. Want to refute an idea? Do it politely.

 

Everyone look at JustaFrog's post. That is the way you should post a disagreement. With respect and courtesy.

 

And again - I would love to come audit all of you. I don't think anyone should publicly tell people how to avoid taxes, but its the same "Let the one who hasn't sinned throw the first stone" saying.

[Ed Mack]

emazers has made it abundantly clear in his time posting here that his goal is to stay under the 200/20k limit so as to avoid being forced to pay taxes on his sales, and therefore publicly outing himself as a likely tax cheat.  That rubs many people playing by the rules the wrong way.  Do you people not expect others to make comments challenging him on this???

Yes, emazers does seem to walk a very fine line here.  I am not accusing anyone, be the 200/$20,000 number is irrelevant unless you look to avoid paying taxes.  Also, if a member is going to post paragraphs about their investing techniques, then I believe people have the right to shoot holes in some of those theories.

[redcell]

emazers has made it abundantly clear in his time posting here that his goal is to stay under the 200/20k limit so as to avoid being forced to pay taxes on his sales, and therefore publicly outing himself as a likely tax cheat.  That rubs many people playing by the rules the wrong way.  Do you people not expect others to make comments challenging him on this???

 

I haven't seen those posts, but if that's accurate, he's playing a dangerous game and is putting himself at risk of having to pay all of his profits (and more) to the IRS as penalties and interest.  Furthermore, if he has been as blatant about structuring his transactions to cheat on his taxes on this forum as you suggest, those posts would likely be exhibits in his trial for criminal tax evasion.  If you get caught cheating on your taxes, it can be a painful painful process to resolve.

[DoNotInsertIntoMouth]

While you may have read my question to be phrased in a sarcastic way, it was not intended to be.  I was simply asking whether the clear implication of his statement was accurate.  And if that implication was accurate and he is, in fact, trying to stay under the reporting threshold for the purpose of avoiding paying taxes, I would most certainly call him out for that...not out of fealty to the tax collectors, but because it sets a bad example for all of the folks here who are just starting out and just starting to think about the issue of taxes.  If people walk away thinking "hey, if someone like him is not paying taxes on these sales, then maybe I don't have to as well," that's dangerous because it could cause them to get into a whole lot of trouble down the road.

 

Its fine - I just don't think publicly calling someone out does anything. It just undermines your own argument.

 

You can make the argument without calling someone a tax cheat. Regardless of what they say and do. there are forum rules and the admins will make sure he stays within them. But you can be mature and respectful and still make a great counterpoint.

 

The fact is, most of the time when you do, a lot more people will actually hear your point and understand it.

 

Sorry for wishing the world was a more respectful place in general. Where is Diabolos when you need him?

[redcell]

Yes, emazers does seem to walk a very fine line here.  I am not accusing anyone, be the 200/$20,000 number is irrelevant unless you look to avoid paying taxes.  Also, if a member is going to post paragraphs about their investing techniques, then I believe people have the right to shoot holes in some of those theories.

 

Indeed, particularly because it's a hell of a lot easier to amass working capital if you're not paying taxes.  If I had cheated on my taxes over the past 5-6 years, I would have tens of thousands of dollars more in inventory than I currently do. 

[comicblast]

Misleading - A lot of people got these at less than $60 when they got super discounted. While it didn't do great, if you got it at $55, you still make money.

DNIIM - you can't make exceptions like that. While what you said might be true, if you look at the bigger picture, no one really don't care how much you bought the set for when you first purchased it. I may have bought the set for $15 off the black market, but the numbers don't tell you how much I bought it for. It just says how much it sells for, and the numbers show a mediocre investment at best.

[@rtisan]

I haven't seen those posts, but if that's accurate, he's playing a dangerous game and is putting himself at risk of having to pay all of his profits (and more) to the IRS as penalties and interest.  Furthermore, if he has been as blatant about structuring his transactions to cheat on his taxes on this forum as you suggest, those posts would likely be exhibits in his trial for criminal tax evasion.  If you get caught cheating on your taxes, it can be a painful painful process to resolve.

Or, he could be paying his taxes and none of this would really matter, would it? In any case, this thread is helpful for those of us who have yet to really sell anything substantial online. I`d offer some of my input, but unfortunately I don`t have too much in this department.

 

What I will say is that this thread (and the many more already in existence like it) go a long way to remind everyone that it is essential to keep your sales/business/transactions/whatever-you-want-to-call-your-investments above board. If you cheat, you may not ever get caught, but if you do, everyone knows you`ll wish you just did everything properly according to the law in the first place. That said, it`s perfectly acceptable to ask/poke-holes in the theories/strategies of others, that`s one thing, it`s another to accuse someone of wrongdoing, when the truth is there is no way for you to really know what they do outside this forum. After reading through this thread (what is  here at the time of posting) I don`t think anyone crossed a line yet, perhaps came close, but not to the point of causing harms. Just continue to "play well" and remember that personal vendettas really aren`t going to do anything other then cause a problem for everyone involved. 

[DoNotInsertIntoMouth]

DNIIM - you can't make exceptions like that. While what you said might be true, if you look at the bigger picture, no one really don't care how much you bought the set for when you first purchased it. I may have bought the set for $15 off the black market, but the numbers don't tell you how much I bought it for. It just says how much it sells for, and the numbers show a mediocre investment at best.

 

Fair enough. But you do have to take it into account - think about reasons besides how good a set does in the aftermarket besides the set itself. the three biggest I would say is :shelf life, price, and how many were sold/ discounts on the item.

 

That set got so heavily discounted, investors bought 100s of them. They still made money. The set was also overpriced. Had it been priced correctly, at $80 or so like Grievous, we would have seen a better gain.

 

its still just one set though out of hundreds. Name another? I mean the whole point is that it doesn't happen often right?  I would love (premium membership?) to have data on the percentage of Exclusives that didn't see at least 10% CAGR over 2-3 years after retirement. not saying thats awesome, just saying it would be very very low.

 

Where as I can name an insane amount of sets that have bombed that were small. Just saying it is easier to find an exclusive that will do well than a small set. Not saying they are better - just safer, which some of us like.

 

I would be on HH or TB, over mirkwood spiders, or shelob, or even uruk hai. Those could all easily triple. But HH is safer.

[redcell]

Its fine - I just don't think publicly calling someone out does anything. It just undermines your own argument.

 

You can make the argument without calling someone a tax cheat. Regardless of what they say and do. there are forum rules and the admins will make sure he stays within them. But you can be mature and respectful and still make a great counterpoint.

 

The fact is, most of the time when you do, a lot more people will actually hear your point and understand it.

 

Sorry for wishing the world was a more respectful place in general. Where is Diabolos when you need him?

 

If someone is doing something that they deserve to be called out on, why is it disrespectful to call them out on it?  If the original poster were, in fact, cheating on his taxes, he would be breaking the law.  If someone were so brazen about breaking the law that they felt no compunction about openly discussing it on an internet forum, I don't see any need whatsoever to pussyfoot around the issue in order to meet whatever standard of propriety you feel is appropriate.

[Quacs]

This is not targeted at any one poster, but let's steer this thread back to the original topic instead of trying to interpret tone on a message board or discussing morality of tax dodging.  The original thread, started by our resident Exclusive Investor emazers, was intended to explain his strategy and why he feels it works.  Let's keep it here.

 

A discussion of the implications of tax evasion is a worthy conversation. I would urge the folks who are versed in this to begin a new thread.

[DoNotInsertIntoMouth]

If someone is doing something that they deserve to be called out on, why is it disrespectful to call them out on it?  If the original poster were, in fact, cheating on his taxes, he would be breaking the law.  If someone were so brazen about breaking the law that they felt no compunction about openly discussing it on an internet forum, I don't see any need whatsoever to pussyfoot around the issue in order to meet whatever standard of propriety you feel is appropriate.

 

He didn't in this thread. Someone else brought up the topic and he just said he was going to stay under the limit and be careful about it.

its not your job because this isn't your site, nor is it your job to educate anyone on how terrible another member is. Look, free speech is all great. but just in general its alarming how rude and hateful and judgemental people are.

 

Seriously - go ahead and start posting about your life.  I guess you are saying you have never knowingly lied, cheated, stole, J-walked, not wore a seatbelt in a seatbelt state, etc. I forgot we were listening to a bunch of saints around here.

[justafrog]

Let me be abundantly clear - I sometimes drive 5 miles over the speed limit and on more than one occasion I have arrived home from a place of business, realized I had taken one of their pens whilst filling out a form there, and neglected to return it.

 

This does make me a lawless hussy and sinner just like everyone else.

 

But what I don't do, and what the owners of the site seem to want to avoid (and I applaud them for it), is go on this site and post helpful tips about how to avoid getting caught speeding and the best ways to commit petty larceny.

 

If any given member cheats on their taxes or falsifies postal documents or walks out of Target stores with Lego polybags stuffed in their pants, it is none of my business unless they make it so by bragging about it on this site and encouraging others to follow their lead. Then it becomes a problem for the site's usefulness and reputation, in my humble opinion.

 

Edited to add: Sorry, Quacs, writing while you were requesting we leave it be.

[DoNotInsertIntoMouth]

This is not targeted at any one poster, but let's steer this thread back to the original topic instead of trying to interpret tone on a message board or discussing morality of tax dodging.  The original thread, started by our resident Exclusive Investor emazers, was intended to explain his strategy and why he feels it works.  Let's keep it here.

 

A discussion of the implications of tax evasion is a worthy conversation. I would urge the folks who are versed in this to begin a new thread.

 

Probably a better way of saying my original point. This thread was never about publicly executing someone who none of us know for something we assume they do.

 

Back to the conversation: So I am closer to Emazers in my investing strategy. Those of you that like small sets better - how do you judge what is going to be a good one. Number of figures, theme, etc.? I just get scared of some of them.

[Quacs]

Let me be abundantly clear - I sometimes drive 5 miles over the speed limit and on more than one occasion I have arrived home from a place of business, realized I had taken one of their pens whilst filling out a form there, and neglected to return it.

 

This does make me a lawless hussy and sinner just like everyone else.

 

But what I don't do, and what the owners of the site seem to want to avoid (and I applaud them for it), is go on this site and post helpful tips about how to avoid getting caught speeding and the best ways to commit petty larceny.

 

If any given member cheats on their taxes or falsifies post documents or walks out of Target stores with Lego polybags stuffed in their pants, it is none of my business unless they make it so by bragging about it on this site and encouraging others to follow their lead. Then it becomes a problem for the site's usefulness and reputation, in my humble opinion.

 

Edited to add: Sorry, Quacs, writing while you were requesting we leave it be.

 

No problem - hopefully we can all steer this back to the original topic.

[Ed Mack]

I know emazers has quite a following on the site, so I will tread lightly.  I enjoy his non-TRU posts, but people need to realize there are some serious questions about his methods IMO.  Tax issues aside, there is also the issue of acquiring 50 or 60 exclusive sets.  How is that done without multiple accounts or against the specific limits set by LEGO?  I'm not trying to be a goody too shoes here, I'm just making the point that buying techniques like his will hurt all investors and resellers in the future...if it already hasn't. 

[DoNotInsertIntoMouth]

I know emazers has quite a following on the site, so I will tread lightly.  I enjoy his non-TRU posts, but people need to realize there are some serious questions about his methods IMO.  Tax issues aside, there is also the issue of acquiring 50 or 60 exclusive sets.  How is that done without multiple accounts or against the specific limits set by LEGO?  I'm not trying to be a goody too shoes here, I'm just making the point that buying techniques like his will hurt all investors and resellers in the future...if it already hasn't. 

 

This is true, and I don't like the limit run-around. Lego is handling it some finally. But unfortunately this is something that even more people do, as referenced in tons of other threads. I agree the practice hurts smaller investors who follow the rules.

 

Edit: "I enjoy his non-TRU posts"  <---- This is gold by the way.

[redcell]

I know emazers has quite a following on the site, so I will tread lightly.  I enjoy his non-TRU posts, but people need to realize there are some serious questions about his methods IMO.  Tax issues aside, there is also the issue of acquiring 50 or 60 exclusive sets.  How is that done without multiple accounts or against the specific limits set by LEGO?  I'm not trying to be a goody too shoes here, I'm just making the point that buying techniques like his will hurt all investors and resellers in the future...if it already hasn't. 

 

The easiest way to acquire large numbers of exclusives is by buying early and often through Amazon.  Although Amazon imposes certain set limits, those limits generally reset each week so you can buy 2 copies of an exclusive this week and another 2 copies next week and another 2 copies the week after that, etc.  Also, now that Target has started selling exclusives, you could acquire a large number through there as well.

[Diabolos80]

Emazers buys his sets from Lego stores. Apparently some retail managers understand that a $1700 sale is a $1700 sale. Imagine that.