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TAX LIMIT BEFORE HAVING TO FILE ON SOLD CARDS
pdoidoi
Posts: 961 ✭✭✭✭
I know it has been mentioned several times on here about the amount you can reach before you have to file for selling cards.
I know there was a lot of discussion on the actual amount .
Does anyone know the amount before you have to file the taxes on card sales.
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For the 2026 tax year, the federal Form 1099-K third-party reporting threshold for eBay is more than $20,000 in gross payments AND over 200 transactions. However, actual tax liability applies to any profit earned from the first dollar, regardless of whether a 1099-K form is issued.
Thank you detroitfan2
Are you a collector or an investor or a collector that invests in their collector for tax purposes. That answer could be worth a lot
...and if your not a legit business collectibles sales are taxed at your Marginal Rate and not at either of the Capital Gains rates
a co-worker of mine recently mentioned to me about a friend of his for years playing all fast, loose, and cute with reporting card and comic sales. Well he made some moves/mistakes that was caught by his State Department of Taxation who then dug very deep via audit and after processing handed it over the the IRS for what ever will be left of his carcass
Dude is in major trouble on multiple fronts!
Even if he "buys" his way out of prison it will cost him pretty near everything he has. IMHO it's simply ain't worth it fiscally nor to ones life-span, I have and will continue to report every red cent!
P.S. since i dont sell cards there's nothing to report
It's the singer not the song - Peter Townshend (1972)
Not even a minute do I buy the whole buh buh buh I'm a man-child japery - Me (2025)
For what it’s worth i pay cap gains rates and I don’t sell cards as a business. I get audited every year and it’s never been an issue. This strategy is also approved by my personal and corporate tax guys. I would suggest everyone looks into the details with their own accountant.
AI was useful today
When you sell a collectible for a profit, the IRS taxes long-term gains at a maximum rate of 28%, which is higher than the standard 0%, 15%, or 20% capital gains rates applied to stocks and real estate. Short-term gains on items held for one year or less are taxed at your ordinary income tax rate.
What the IRS Considers a CollectibleArt, antiques, and rugsStamps and coinsPrecious metals and gemsAlcoholic beveragesHistorical objects and rare itemsTax Rates and RulesHeld 1 year or less: Taxed as ordinary income (up to 37%).
Held over 1 year: Taxed at your regular income tax rate or capped at a maximum of 28%—whichever is lower.High Earners: An additional 3.8% Net Investment Income Tax (NIIT) may apply if your income exceeds $200,000 for single filers or $250,000 for married couples filing jointly, pushing the effective federal rate higher.Reporting:
Sales are reported on Form 8949 and Schedule D of your federal tax return.
It's all about that base-is for me.
I know - I notified the IRS that you bought them at the original 5 cent pack price
If you do not have receipt for a card purchased in the 1990s ? Or statement for raw card submitted to PSA in 2000?
It's the singer not the song - Peter Townshend (1972)
Not even a minute do I buy the whole buh buh buh I'm a man-child japery - Me (2025)
@1982FootballWax
I guess people have to do their best to estimate using price guides like Beckett for raw cards and SMR guides for graded cards?
There are several states where the threshold is only $600 with no minimum amount of transactions. I believe they are: MD, MA, VT, VA, MT, MS, NC, CA (and the District of Columbia). There are a few other states with slightly higher thresholds.
Mostly collector but sometimes I try to flip a few cards to buy something a little better. Have only sold just a handful of cards in the last 10 years.
That sucks.
Thank you Baltimore Yankee
Net profit is taxed at 31.5 percent. Gross sales minus cogs gives you net taxable income. You can expense your way down from there. Mileage, supplies, shipping costs etc.