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12-17-2001, 08:22 AM
Posted By: <b>Cy</b><p>Does anyone on the board know when card collecting is a hobby and when it is a business in the eyes of the IRS?
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12-17-2001, 09:33 AM
Posted By: <b>Bruce Moreland</b><p>It becomes a business when they audit you.<BR><BR>bruce<BR>
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12-17-2001, 05:30 PM
Posted By: <b>warshawlaw</b><p>Card collecting is always a hobby. Assuming you meant to ask when dealing becomes a business, the answer is that it is a business whenever you decide it is a business. There are some VERY hairy rules involving regulation on local, state and Federal levels, including the dreaded IRS "hobby" rules which require a profitable enterprise for at least 3 of 5 years. If you have a specific question, you will need to buy the time of a CPA or tax attorney. Treating your collection as dealer inventory also can void any personal articles coverage you have unless it expressly covers business inventory.