Card Sales and the IRS

[jsokol1626]

All the hobbyist I know that set up at card shows never claim their sales on their IRS filings. I seen the state come in handing out forms for taxes. Everyone I seen just takes them then drops them in the trash and never pay taxes on their sales.

No matter the political party they still come asking for taxes as the shows been ongoing since the 80’s.


Don

I've set up at card shows where the IRS or state tax agents have confiscated sellers' entire inventories for failure to pay taxes or for being caught multiple times without being able to produce a sales tax authorization document. Many of the shows where I sold sports merchandise required a tax ID if you wanted to rent space as a vendor.

[jsokol1626]

I am new to this forum so forgive me if this question has been answered before:

Have never sold anything via Auction before but am thinking of listing a Jordan rookie (BGS 9) to help with family finances. Question is... If I were to net a large dollar amount, am I required to report to IRS? I have had this card since I was a kid so this would not be a business transaction - rather a one-time sale. Any feedback would be appreciated.

You only pay income tax on your profits, not the total sales amount. Since you are the only person who knows how much money you have invested in the card the profit you declare is basically an honor system. Frequently, people sell merchandise at auctions without realizing a profit. Some are selling off old inventory, others are liquidating private collections while others are simply bad business people. Exceeding $600 in sales that generates a 1099 form does not by default mean you have realized income.