Quote:
Originally Posted by BobC
And unless you're a dealer filing and reporting your card activity as a business, you'll most likely be filing and reporting your card activity as a collector/hobbyist, in which case you don't want to show any losses for items you sold. If you are into cards as a hobby, you have to report and pay tax on any gains you may have had from your sales, but for any sales losses they aren't deductible, and you just end up reporting them as $0 gain/income on your return.
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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?