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As a buyer, I tend to go with larger stores for the type of lots I buy, but then I rarely spend £1+ per brick/part. I usually want lots of cheap bricks, so size of inventory matters there.
Metroliner goes for that much?? Geez, I bought a complete set, an extra passenger car, and the observation/sleeper car for $200 off bricklink of all places like 2 years ago. I thought I just seen one end for like $200
Yep, believe it. http://www.ebay.com/itm/LEGO-CITY-METROLINER-TRAIN-SET-NEW-COLLECTOR-ITEM-10001-/260837818012?pt=AU_LEGO&hash=item3cbb253e9c#ht_4563wt_952 Really. Who is absurd enough to pay that for a metroliner MISB?! Whats the value aswell, given this is the Legends re-release. You are one lucky person jdylak, the sleeper car itself goes for around 130 - 500 USD. What kind of condition was it in?
I run a small BL-store and i'm always on the look-out for sets to part out! Wanna share your thought?
Of course, having a great part out value, then having parts that actually sell, is another matter... :)
Is it a month supply, 3 months, 6 months, two weeks?
I honestly have no idea, but that is the missing information that will tell us something useful. :)
I have stopped stocking up on it for that very reason, I have 50 of them and that is enough for me. To many other sets to pickup that I think are less overbought. But I could be completely wrong. :)
I was told (probably old news) today by a Lego store employee that the modular fire station is nearing discontinuation, so the prices of dark red bricks will probably hold strong.
Also noticing rarity of a piece, but rarity means few in any set, which leads to only making a profit if the other pieces in the set have a marketable value, too. The Emerald Night train is a great example. When that went on sale last year, it was a great part-out value due to rare colours and the resale value of train cars in this current train drought Lego is in (ok, trains exist, but I want more... More... MORE!) time to sign out and build something out of dark red bricks :)
I've already parted out 3x pet shop and 2x town hall,the pieces did really well! I'm now thinking if i shall buy some of the recent friends-sets to part-out! The contain so many rare colours but i have no idea if those colours really sell!
And of course i'm going to buy a couple of "haunted house"es,i'm pretty sure their part-out value is nice,even regarding the fact that TLG raised the price!
In terms of all this parting out, I often part out sets for mocs and have loads of parts left over. Wouldn't mind having a go at bricklink at some point, but I really dont want the hassle of the potential tax liability of a business (which is what a dedicated store might be viewed as?), so at the moment its on hold. Might be a good stop gap for in between jobs.
Quick question for any BL store owners, how on earth does anybody calculate profit on parted out sets? Given the massive breakdown of initial cost in to hundreds of pieces, not to mention the long term nature of any sales, it just sounds very difficult to me?!
From a legal accounting point of view, the way I'd do it would be to keep a running total of COGS, without trying to track unique parts. Buy a set for $100, that is a cost of goods. Sell 5 orders of $5 each worth of parts, that reduces COGS by $25, leaving you with $75 of COGS left. Continue this long enough and if you're profitable, your COGS would run down to zero at some point, paying off what your inventory cost, leaving whatever left "free". It would also then become taxable, if you're selling enough to have to pay taxes where you live.
This is, my understanding how places like Half-Price books do it, since clearly they are not tracking unique inventory. Some tax authorities allow this, others do not.
Now, if the question is, are you making any money, one way to tell would be to keep a separate bank account and separate funds, and to treat it like a business, if you have more money than you started with, you're profitable, if not, you're just doing a great public service! :)
Depending on where you live, that might or might not be legal, from a tax point of view.
I guess my main question, is that regardless of profit or no profit, how many bricklink sellers inform hmrc when they start up? In reality you have to inform them within 90 days if you set up a business. Having your own store is a business isn't it? The whole area seems a nightmare, which is why for now I have avoided it!
You have to be selling with the intention of making a profit to be interesting to HMRC. If you are selling unwanted, second hand stuff (and open lego boxes are second hand) and not making a profit, there is no tax to be paid. Of course, it is a different situation if you are selling sealed sets (or parts) for a profit.
1. The tax laws are very different from country to country, so what the law says will vary.
2. I am personally of the opinion that governments everywhere tend to overreach on their tax laws, to catch as much of the fruit as possible, but that they know all too well that the small fish get through, and honestly aren't worth catching.
3. In regards to your situation, first you have to define a business, then you have to decide if you agree with your government's definition. Plenty of people don't pay taxes they legally owe, nor should they (in my opinion) because trying to do so would be a huge pointless burden for very little gain on everyone's part.
In regards to the last two points, in the United States, you're legally obligated to pay taxes on even just $1 in profit. Which of course is nuts, you'd spend more money figuring out how to do that then is owed.
This is why the IRS has set the reporting rules to $20K. PayPal and Amazon will report your gross income to the IRS if they pay you more than $20K during the year, this is the level that they consider worth bothering about. Someone making a few thousand for a self-funding hobby, or selling off older items they don't want, is not worth bothering with, either by the government, or the person involved, even if the taxes are legally "owed".
I don't know how it works in the UK, but in the USA, the IRS doesn't tell you what you owe, you file your own tax return and tell the IRS what you owe.
For the most part, the IRS takes everyone's word for it. If they doubt the information filed, they can audit you. This can be a simple request for information, such as a bank statement, deposit records, or some other paperwork to help them make sure everyone is being honest.
It can also take the form of a complete audit, which is known for being a pain in the neck and keeps many CPAs employeed. :) But most audits are not complete, they are just cleaning up small errors and such.
Sometimes, they are in your favor, if their computers detect that you overpaid taxes by mistake, they will adjust the return and issue you a refund. They will not, however, give you deductions that you missed, only overpayments.
So deduct away, generally the worst thing they will do is disallow the deduction. What gets people put into jail is failing to report all income. You can have $1 Million of income and pay no taxes if you have deductions and tax-writeoffs of more than $1 Million. But if you earned $1 Million and only claim $100,000, that is what gets you sent to the big house.
I've been discussing this with myself yesterday.
I bought a #10217-1 Diagon Alley a long time ago, for a good price. That was when I read about all this thing about the Lego investment, and keep a set for a couple years in your closet, and blah blah. I thought, well, I love Legos so, why not try this apart from buying and selling bricks?
When it arrived, the box was in pretty bad condition. The seals are still intact, but the box is not in good shape.
Also, selling sets has always been somewhat boring to me. I like getting orders, picking parts, shipping them. They are usually more common than if you just ship sets. And they are easier.
So... from your experience... should I part it out or shouldn't I? I know it might fetch a somewhat higher price in say, one year from now. But is it worth waiting one year for just 10 or 20 more bucks?
Also, in one year I might have sold more than half of the parts and get the same return... or maybe not... UGH I hate this indecision! Please help!