If you are charging bidders for shipping supplies, you cannot take a deduction for those supplies on your taxes. If you do, that’s double dipping.
Whenever we see service terms like the one below, we hope the company is not double-dipping, charging bidders for packing supplies and then deducting those again on their income taxes as “expenses.”
Here’s an example of a Proxibid house that not only charges for the supplies but co-mingles employee compensation with that:
Handling fee of 9.50 will be charged … this is to cover the wrappers wage (our italics), bubble, box, tape etc. DUE TO THE LARGE AMOUNT OF ITEMS SELLING TO ON-LINE BIDDERS PLEASE ALLOW UP TO TWO WEEK FROM AUCTION DATE FOR SHIPPING.
In addition to paying for wage and tax-deductible supplies, the bidder gets to wait up to two weeks.
Is this a good business model, Proxibid?
Proxiblog is an independent entity with no connection to the auction portal Proxibid. Our intent is to uphold basic numismatic standards as established by the American Numismatic Association and the National Auctioneer Association and to ensure a pleasurable bidding experience not only on Proxibid but also on similar portals such as iCollector and AuctionZip.