listing cards through auction companies and taxes

hslice

hi there all, I was thinking of using PWCC to sell a few cards. Some are just a couple hundred dollars, a few might sell for $5K+.
I'm not familiar with the process but when PWCC sends you payments, do you declare this on taxes?

thanks!

blurryface

best to contact a cpa in these questions.

daltex

@hslice said:
hi there all, I was thinking of using PWCC to sell a few cards. Some are just a couple hundred dollars, a few might sell for $5K+.
I'm not familiar with the process but when PWCC sends you payments, do you declare this on taxes?

thanks!

Are you asking if they will send you a 1099, or if you're obligated to declare profits? Either way, @blurryface is 100% correct above.

nymutts

If you show a net profit on the sale of the cards, one is required to declare the income on the tax return regardless if they receive a 1099 or not. The fact that you don't receive a 1099 doesn't mean the information was not provided to the IRS. Since payment is made payable to the auction houses, they show they paid out the proceeds and to whom as a business expense. However, going to a qualified tax preparer is a must since the tax treatment can vary if the sale was determined to be part of a business, collectible or just ordinary income along with any allowances for expenses.

Goldy213

Becomes very thorny… always keep pristine notes on all buys and sells including expenses like eBay fees etc…
If you’re audited you absolutely will need to show this.

Justacommeman

I declare profits and loses every year on my sold collectibles. He is still waiting for all the profits to roll in. My accountant doesn't understand why I collect

m

hslice

thanks for the feedback all.