Reporting sales of large $$ items

[BobC]

Originally Posted by hockeyhockey

it could also really open up the trading market. i'd personally prefer to trade all day long, since that's basically what i'm doing anyway. sell something to buy something else.

Not so fast there!

You do know that if instead of selling someone a card for money, you trade a card(s) you have for a card(s) that someone else has, that technically in the IRS' eyes you just completed a taxable sale? And that goes for whether you're a Dealer, Collector, or Investor. Now, will the IRS ever likely know about it? Probably not, unless you or the person you traded with informs them. But just letting you and everyone know, even a card trade is supposed to be reported as a taxable sales transaction on your income tax return.

And before anyone jumps on to try telling me I'm wrong because of the Like-Kind Exchange rules, please note that in regard to Section 1031 of the IRC, in the case of cards, that probably would have worked only if you and your buddy swapped the exact same card. But that was in the past anyway since the tax law changes passed and enacted when Trump was in office in 2018 also included changes to the Like-Kind Exchange rules of Section 1031 of the tax code, where going forward, Like-Kind Exchange tax treatment only applied anymore to exchanges of real estate, period!