The Truth About Sports Cards and Income Tax | David Harstock, EA | SCL
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- čas přidán 9. 09. 2024
- We sit down with David Harstock, US Income Tax Professional and sports card collector, to discuss the income tax rules surrounding the buying and selling of your sports cards whether you've owned them for a day, a month, a year, a decade or even longer, common tax misconceptions, when are you required to report your sales, the tax implications of making trades, what a 1099 actually is, does the IRS even care, how is sports card income characterized, what records do you need to keep and what if you don't have documentation on historical purchases and sales you've made and more on taxation so join us live and bring your questions and comments as they will be in play.
Leighton Sheldon of Just Collect and Vintage Breaks joins for the "Vintage Spotlight" segment!
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Saturday June 15 @ 7:00pm PST / 8:00pm MST / 9:00pm CST / 10:00pm EST
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Thank you Jeremy for the time you took out of your Saturday evening to talk to a tax nerd! It was a blast; you have great viewers and listeners, I appreciated all the questions and feedback! Happy Father’s Day and have a great rest of your weekend!
It was a pleasure having you David. Thank you for sharing such important knowledge and insights. Happy fathers day to you too!
Learned a lot from this episode. Much thanks!
Glad you did and thanks for letting us know!
IMO ….if you are a casual hobbyist and do this for fun…..you may be limited to the level of expenses/losses you can claim against the hobby ‘gains’….as the ‘gains’ are treated as capital gains, not ordinary income. if your a hobby business, then you have more options to claim relevant expenses against your ‘ordinary business income’. Thankfully, hobby gains are disregarded in some non US countries and 1099 does not apply to non US citizens. The middle ground is where you designate yourself as a ‘hobby investor’….which may allow you to claim hobby losses/expenses against hobby gains/income.
You’re on the right track and you are correct if certain documents are filed/maintained (W-8BEN), a 1099 won’t be issued to a non-citizen. The issue around hobby vs business is pre-2018, the IRS allowed hobby expenses to offset to the extent of the hobby income. 2018 forward, these expenses are no longer deductible.
If you can prove your activity is regular and continuous, even if not profitable, and your efforts are to become profitable, you can deduct your expenses to reduce your income.
So, in the IRS’ eyes, hobby income is required to be reported, but no deductions are allowed. A terrible law, I know, and this is one of many reasons this income goes unreported. Great comment and thank you for watching!
Thanks for sharing your thoughts Andrew.
Keep this in mind. If you are wanting to deduct your losses against your job earnings you have to have more deductions than the standard deduction. Which will be over 14K in 2024 for single and over 29K for married.
Thanks for the info, Taura.
Hello there! If you are operating a business and it isn’t a passive activity, and it suffers a loss, the loss will reduce your other income (W2 income as well) without regard to the standard deduction.
Hey brother!
What's up bro?!