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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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Wanted : Detroit Baseball Cards and Memorabilia ( from 19th Century Detroit Wolverines to Detroit Tigers Ty Cobb to Al Kaline). |
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