Anyone filed taxes for their card sales before?
Knopfler
Posts: 783 ✭✭✭
Just wondering if you enter total sales and total expenses, or if you list each card/lot/set sale individually and somehow figure out a cost basis for each sale. The latter method would be difficult since I buy cases and break them up to sell as singles, lots and sets and I buy large lots to sell as smaller lots and small lots to sell as part of larger lots or sets and of course sometimes obtain cards through trades. This is the first year of the paypal 1099 (if you received over 20k in paypal payments) so there may be some on here that are in that category. I was right around 20k, not sure if I hit it or not.
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Its gonna be a trial and error process for a lot of us. Recordkeeping is and will be the Key. I have three three inch ring binders with all of my Costs for this year down to the last pencil and roll of scotchtape. Costs include but not limited to are: PSA Sub and Membership Costs, all Shipping supplies, Board Purchases, E-Bay Fees, Paypal Fees, Expenses to the National, subscriptions, Postage Costs, E-Bay Shipping Fees, E-Bay/Paypal Shipping charges, E-Bay Purchases, Card Store Purchases, mileage to/from Post Office, and on and on................
The hardest part, and if somebody has a clearer idea of how to do this please chime in, is going to be how to take into account your Purchase costs from previous years (Before Last year), when we weren't keeping such good records because we were just having a Hobby, and then you sold the item(s) this year (Moving Forward called Static Inventory). I have randomly decided to assign a Procurement Value of %30 percent of my Sales amount for any item I do not have records of the actual purchase, Static Inventory. It would be a argument point with the IRS if you were ever audited but I would have some grounds to stand on as Historically I can show for hundreds of items that my Cost basis is %40-%50 percent, so %30 is under what I can prove as an average. Of course each year from now on this will be deminishing as older stock is turned over and higher and higher percentages of current year purchases will make up each years current sales.
Neil