Tax question regarding selling my entire collection

tommyfro21 · Mar 26, 2009

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

EricInCT · Mar 26, 2009

tommyfro21 said:
My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

tommyfro21 · Mar 26, 2009

No, I do not, but ultimately, any money you make, you have to pay taxes on it.

EricInCT said:
tommyfro21 said:

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Click to expand...

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

Mark McGwire Museum · Mar 26, 2009

tommyfro21 said:
No, I do not, but ultimately, any money you make, you have to pay taxes on it.

So, you're saying that you have every receipt for everything you ever purchased, and will be showing a profit on everything, and then filing taxes on said profit?

boomo · Mar 26, 2009

you are not seriously going to pay taxes on it?
ill sell it for you and mail you a check every week or send you
cash. you may be the only person i ever heard say that

Adamsince1981 · Mar 26, 2009

tommyfro21 said:
No, I do not, but ultimately, any money you make, you have to pay taxes on it.

EricInCT said:

tommyfro21 said:

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Click to expand...

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

Click to expand...

If you claim your eBay sales...you are paying more taxes than necessary.

mchenrycards · Mar 26, 2009

EricInCT said:
tommyfro21 said:

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Click to expand...

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

UMMMMMM WHAT????????????
yeah he is responsible but he probably will have to show his sales as profit unless he can prove what he paid for each card and only pay the taxes on the profit over what he paid.

tommyfro21 · Mar 26, 2009

Mark McGwire Museum said:
tommyfro21 said:

No, I do not, but ultimately, any money you make, you have to pay taxes on it.

Click to expand...

So, you're saying that you have every receipt for everything you ever purchased, and will be showing a profit on everything, and then filing taxes on said profit?

No I don't, as in things I bought as a child and such. I have most of my receipts from everything I have purchased over the last 2-3 years though ever since I got back into card collecting.

tommyfro21 · Mar 26, 2009

Adamsince1981 said:
tommyfro21 said:

No, I do not, but ultimately, any money you make, you have to pay taxes on it.

EricInCT said:

tommyfro21 said:

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Click to expand...

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

Click to expand...

Click to expand...

If you claim your eBay sales...you are paying more taxes than necessary.

Can you elaborate on that statement? Just trying to understand what you mean.

tommyfro21 · Mar 26, 2009

mchenrycards said:
EricInCT said:

tommyfro21 said:

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Click to expand...

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

Click to expand...

UMMMMMM WHAT????????????
yeah he is responsible but he probably will have to show his sales as profit unless he can prove what he paid for each card and only pay the taxes on the profit over what he paid.

That's how I understood it. If I can show what I paid for a card, then I can deduct that from the total. But if I have no record of it, then I have to pay tax on the full amount.

Another question would be, can I show what I paid for any card I have ever purchased and deduct that from the final sales total or would it be only from cards I bought during this year?

Mark McGwire Museum · Mar 26, 2009

So many questions.....How many cards are you talking about?? How much do you expect your collection to sell for??? Why do you have almost every receipt for baseball card purchases from the last 2-3 years?? How old are you? and lastly, are you the type of kid that always told on yourself to your parents?

Adamsince1981 · Mar 26, 2009

tommyfro21 said:
Adamsince1981 said:

tommyfro21 said:

No, I do not, but ultimately, any money you make, you have to pay taxes on it.

EricInCT said:

tommyfro21 said:

My hope is that I can move my entire collection this year. I am wondering from those who have knowledge in the area of taxes....what is the best way to file these sales for tax purposes?

I will be selling everything, but not in one lump sale. I plan on selling some here and some on eBay to get the most profit for my cards.

I understand I will get some crazy answers from some of you on here and be told don't get tax advice on a baseball card board.

I'm just trying to get some pointers so I can move in the right direction. Basically, I want to make sure I save all the paperwork I need to save for tax purposes and such. I also want to make sure I am filing it the right way so I don't pay more taxes than necessary.

Thanks in advance for any help any of you can give!

tommy

Click to expand...

Do you have a brick and mortar building? If not I can't imagine you are responsible for the taxes.

Click to expand...

Click to expand...

If you claim your eBay sales...you are paying more taxes than necessary.

Click to expand...

Can you elaborate on that statement? Just trying to understand what you mean.

I've never claimed anything I've sold on my taxes...because, push come to shove; this hobby of mine is in the RED.

Unless you own a shop or you are a big time prospector...I think you'll be fine.

Actually, you could probably pay the $150 or whatever to become incorporated and likely claim a loss.

Dpanthers14 · Mar 26, 2009

why would you do a foolish thing like tell the gov. about the money you made? its not like they are goin to hunt you down.

tommyfro21 · Mar 26, 2009

Mark McGwire Museum said:
So many questions.....How many cards are you talking about?? How much do you expect your collection to sell for??? Why do you have almost every receipt for baseball card purchases from the last 2-3 years?? How old are you? and lastly, are you the type of kid that always told on yourself to your parents?

1. Honestly, I'm not sure on the amount of cards.

2. I know I have over $5k in my collection, maybe even closer to $8k.

3. I kept records of every card I purchased so if I decided to sale it, I knew what I needed to make to recoup the cost, if possible. I also thought about doing it as a side business and making it more than a hobby, but I realized I don't have the time for it and just don't care about collecting like I used to.

4. No, I didn't tell on myself as a kid, but I am a Christian who happens to be a minister. I try to live a life of integrity. Basically, I am trying to be honest with what I am doing regarding taxes.

Adamsince1981 · Mar 26, 2009

Dpanthers14 said:
why would you do a foolish thing like tell the gov. about the money you made? its not like they are goin to hunt you down.

Card Magnet · Mar 26, 2009

Dpanthers14 said:
why would you do a foolish thing like tell the gov. about the money you made? its not like they are goin to hunt you down.

boxbreaker · Mar 26, 2009

i asked my tax lady a lot of questions on this subject, and her take was if your hobby makes a profit 3 years in a row you have to claim it as a business and pay taxes. for one year it is a hobby.

she is a x IRS agent, so she seems pretty trustworthy.

Adamsince1981 · Mar 26, 2009

boxbreaker said:
i asked my tax lady a lot of questions on this subject, and her take was if your hobby makes a profit 3 years in a row you have to claim it as a business and pay taxes. for one year it is a hobby.

she is a x IRS agent, so she seems pretty trustworthy.

I was going to mention the hobby rule, but I didn't know the details so I thought it best not to mention it.

boxbreaker · Mar 26, 2009

the reason i asked is that i am moving a lot this tax year but purchased everything (cases) last year. guess that is why they have the hobby 3 year rule.

tommyfro21 · Mar 26, 2009

boxbreaker said:
the reason i asked is that i am moving a lot this tax year but purchased everything (cases) last year. guess that is why they have the hobby 3 year rule.

Yeah, how does that work with the hobby rule? I use Turbo Tax and saw that listed this year.

I purchased a lot of stuff last year, but don't plan on buying anything else from this point on, just selling it all off to get rid of it. Would that still be hobby or would it be extra income, yet not listed as a business?

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