Quote:
Originally Posted by Stupe the Second Sacker
Yes...First, thank you to all who responded constructively. This has been very helpful I'm sure to many people.
I want to be sure I understand the section above because I was thinking I could net sales out and as long as the result was not a loss, I was good. But it sounds like you're saying this:
Example using small numbers for simplicity...If I sell 10 items and seven of them sell for $1000 each (plus $7000) and the other 3 I lose $1000 each (-$3000), I pay taxes on $7000 and not the net result $4000. Correct?
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All depends on whether you are:
1) a dealer
2) an investor, or
3) a personal collector.
I realize that term #2 carries a lot of baggage around here, so people are loathe to suggest that they are an investor. But you might find that the tax outcomes are a lot better as an investor! Just don’t tell anyone on this board about your tax filing position.
This article might help a bit as well, in terms of understanding some of the differences:
https://frblaw.com/2022/01/04/tax-co...s-card-market/