Posted By:
Frank WakefieldI think you will find the answer is a "yes", not on net for the year, but on it all. And it is taxed as ordinary income.
But that isn't quite the worst of it. If you sell several thousand dollars worth of cards, and owe a few thousand in taxes. Just think. If you were to write a check for a few thou to anyone in the US, who could you give that money to, and be confident that it was going to be poorly spent, wasted, and spent on "wrong" activities. You guessed it! That's where your money goes.