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Welcome to Net54baseball.com. These forums are devoted to both Pre- and Post- war baseball cards and vintage memorabilia, as well as other sports. There is a separate section for Buying, Selling and Trading - the B/S/T area!! If you write anything concerning a person or company your full name needs to be in your post or obtainable from it. . Contact the moderator at leon@net54baseball.com should you have any questions or concerns. When you click on links to eBay on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network. Enjoy!
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Old 01-18-2020, 11:50 AM
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insidethewrapper insidethewrapper is offline
Mike
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Join Date: May 2009
Posts: 1,368
Default Hobby Sale with the New Tax Laws ?

How does the tax work when you consign to an auction house ? Do they report to the IRS your name, or is it up to you to report your sale and list under "Other Income" ? I've never sent anything to an auction house before .
I heard the new tax law does not allow you to deduct expenses from the sale (unless your a business ).

Any tax experts out there ?

If I sell a set of cards for $ 3000 and I'm not a business ( a collector) must I report the entire $3000 as "Other Income" since the new tax law took effect ?

Below was taken from the internet:

TCJA Effect: For 2018–2025, the TCJA eliminates write-offs for miscellaneous itemized deduction items that under prior law were subject to the 2%-of-AGI deduction threshold. This change wipes out any deductions from hobby activities. So under the new law, you cannot deduct any hobby-related expenses, but you still must report 100% of any revenue from the hobby activity as income and pay tax on it. Yikes! So you can now expect IRS auditors to focus even more attention on folks with money-losing sideline activities. That means it’s now more important than ever to establish that a money-losing activity is actually a for-profit business that has simply not yet become profitable.
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