Hobby Sale with the New Tax Laws ?

[insidethewrapper]

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.

[steve B]

I'm not sure how things are exactly with the new rules.

Back when I was doing a decent amount of items on Ebay, we reported all of my ebay income under "other income"

Being somewhat lazy, and not being good at record keeping, we reported the entire gross, rather than try to figure out what the stuff had cost.
Some items I'd had for decades, and didn't remember what I'd paid. (Was that card from a pack, or a lot, or did I buy it individually? From a dealer? Or a flea market or yard sale? ) Others I knew what I paid, but it came from a yard sale paid in cash, and hardly any yard sales give receipts, especially on stuff that's cheap.
I saved what I had for provable expenses, like Ebay fees and shipping. And I think one year I did subtract that from the total before it went on the "other income" line.
But generally I had provable expenses that I didn't write off.
I was also typically under 12K a year.

I was sort of a business, in that I had a Mass sales tax ID for a few years. But hadn't done a local DBA form, as they made it complicated, file the form, give them a business plan, including expected customers at your location, business hours... I told the clerk my plan was basically "sell stuff on the internet that I've either had for years or got at a yard sale" and that it would be pretty rare to have anyone actually come to the house, Like maybe once every couple years? They said I shouldn't bother with the form.
Now they tax locally held inventory, which would be a huge nuisance. Some I kept at the house, some at a storage area in a different town.

[Leon]

I use my landed cost as the cost basis for my cards, right or wrong. It is what I paid to get it.

[Aquarian Sports Cards]

Auction houses are not required to report your earnings to the IRS. We are required to keep records for 7 years though in case someone that we paid is being investigated and they come looking.