Help!! Audited on my 2021 Taxes over baseball cards!!

[Leon]

I have been writing off my Net54 dues for around 20+ yrs now. So far it hasn't been a big tax savings.
The one time I have ever been audited, I had a loss of a few k on a few cards. I counted the losses and showed the cost and sale price. They passed the audit with no issue.
Now, I did have an errant 1099 that I missed and owed taxes on. But my card losses were fine.... (except they were losses )

ps...I have had the same CPA for about 25 yrs...worth his weight in gold.

Originally Posted by raulus

Even if you're a hobbyist, your basis in the cards is properly included in the calculation of your gain. That's not technically a deduction.

But if you have a loss on the sale of a card, then you can't take that loss. So for example, you have 10 cards that you sell for a gain, you have to pick up those gains. If you have another 10 cards that you sell for a loss, those losses cannot be used to offset your gains.

And when it comes to other hobby expenses, like traveling to shows, your PSA membership, Net54 dues, home office deduction, tax preparation fees, etc., none of those are deductible.

[Snapolit1]

Missing a 1099 is a huge reason many people get audited.

Originally Posted by Leon

I have been writing off my Net54 dues for around 20+ yrs now. So far it hasn't been a big tax savings.
The one time I have ever been audited, I had a loss of a few k on a few cards. I counted the losses and showed the cost and sale price. They passed the audit with no issue.
Now, I did have an errant 1099 that I missed and owed taxes on. But my card losses were fine.... (except they were losses )

ps...I have had the same CPA for about 25 yrs...worth his weight in gold.

[jchcollins]

Originally Posted by Snapolit1

Missing a 1099 is a huge reason many people get audited.

I don't think they drag it out that far anymore. If you get a 1099 that you ignore, and the IRS computers match that up - they'll just send you a bill.