Taxes On Consignments

[joetinkerfan]

My understanding of what most of you are saying is that I would only have to declare to the IRS what I gained from the sale of my cards? For example, if I purchase a card for $100 and sell if for $110 I would only have to declare the $10? Also, when purchasing my cards I never kept record of the purchase price. Would I just guess as to what I purchased them for? I do have a very good idea of what I paid, but I could be off a little. Thank you again for the information.

Mike

[calvindog]

Mike, yes, you'd only have to declare your gain. If you don't know what you paid for the card, you should make a best guess -- but be prepared to defend that guess should you be audited.

[Texxxx]

Originally Posted by joetinkerfan

My understanding of what most of you are saying is that I would only have to declare to the IRS what I gained from the sale of my cards? For example, if I purchase a card for $100 and sell if for $110 I would only have to declare the $10? Also, when purchasing my cards I never kept record of the purchase price. Would I just guess as to what I purchased them for? I do have a very good idea of what I paid, but I could be off a little. Thank you again for the information.

Mike

With out records they could make you declare all of it. They probably want but could. My parents were audited when I was around 16 and I have been audited myself. We came out squeaky clean but I knew to keep perfect records. I have records of the cost of every card I own. Even if it's just an email stating what I am paying for it.

[iwantitiwinit]

It's all going to depend on whether you receive a 1099 from the auction house. If you receive a 1099 the revenue will have been reported to the IRS and you will be obligated to report the income. IF you have not received a 1099 you are still required to report the gain and loss however the IRS will not have received notice of your receipt of funds from a third party.