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Old 03-23-2021, 04:28 PM
Gusturd Gusturd is offline
Art Levenson
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Join Date: Jan 2017
Location: Northeast
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Quote:
Originally Posted by Aquarian Sports Cards View Post
Problem is you just said two different things as goals.

1. Do it gradually and enjoy the process.

2. Sell it as a means to raise money and enjoy retirement.

There's a time value to money. The same reason the lottery offers you more if you take your win over time applies here. Again to use your round numbers $100,000 today is worth a lot more than $10,000/year for 10 years.
I see what you're saying and have considered that as well. I don't think either approach checks every box. I'm just trying to figure out which one checks the most.

I guess the unanswered question for me is, can you sell for 10 years making 10K per year without the IRS saying hey wait a minute...You're a business. I don't know if they're as concerned about that scenario. At the end of the day, isn't the hobbyist paying higher taxes than a business would (assuming equal sales)?

If that's the case and if the net result (ie net gain) of one over the other is relatively close, but one saves me a lot of additional record keeping, then I guess I'll have my answer.
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