SPORTS CARDS - 1099K Form and TAXES - WHAT YOU NEED TO KNOW

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In this video, we dive deep into the major changes announced regarding 1099k forms, the 1099k lowering threshold delay, why 1099k forms are not scary, what they are used for, and how you need to be keeping track of your expenses in order to legally lower your taxable income from your sports card business.
**I am not an accountant or CPA. I am a licensed drug dealer. Talk to a professional and don't sue me bro**
****Welcome to my channel SHORTSLABS****
Here my mission is to:
-Catalog the best graded card orders on RU-vid
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-Enjoy this wonderful hobby with the rest of the "clecting" community!
About me:
-Full time pharmacists by day
-25 year hobby veteran by night
-Flipper for the past 20+ years
-eBay veteran for over 20+ years!
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29 сен 2024

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Комментарии : 76

@rathofturkey 5 месяцев назад

Remember when buying, selling and trading cards was supposed to be fun? The IRS sure as hell doesn’t.

@user-xf2tl8ee3c Год назад

Really helpful thank you Tyler 🙏🏼

@fishinwiththebradleys8542 Год назад

So if I sell cards and people pay via Cashapp/ Venmo/ paypal in 2023. I save receipts but I have no LLC/ License, do I just use my receipts as proof for my taxes ?

@BurtRhombus Год назад

Good info. I’m guilty of not keeping the most meticulous records. After hearing this, I think it’s time I do. Keep grinding Sir.

@cravenlevay8761 Год назад

Paying the IRS? You already Fked up... Sold a Ton and the IRS is getting 00000...

@TylerShort Год назад

All I can say is good luck!

@smizu1442 Год назад

We're talking about REAL money here...

@cravenlevay8761 Год назад

@@smizu1442 Hahahah Lil girl I guarantee you are not on my lvl...

@Pejion. Год назад

1099 finna hit like a brick wall brotha 😂

@teecee4459 Год назад

All you have to do is claim you purchased for slightly less than you sold, report it and they'll accept it. Example: you bought a card for $200, then sold it for $1,000. Just claim you paid $950. You're going to pay taxes on $50 instead of $800, but it will be official and in the books and they're not going to audit.

@ZiggyNo Год назад

Any tips for tracking the cost of cards from breaks? If I spend 1000 in breaks and sell the cards raw and done with grading etc I assume I can write off the cost of breaks even the skunk breaks? Do you recommend quicken or commercial software to track your business? I always see you using Spreadsheets

@brianandersen4286 Год назад

Great video!! So as a collector for over 20 years, lets say i want to sell on ebay or wherever. Tax purposes how do i take in account my cards as a value because its stuff i've gotten throughout all my years of collecting? I dont want to just sell a bunch and not have any deductables for the previously owned cards. it seems like i'd be in it for a loss?

@Jumpsh0tz Месяц назад

Ive always reported what ive sold even if i didnt receive a 1099. My question is can i use my cog as a deductible without an llc?

@arizonashane Год назад

Appreciate this. I added up everything and my expenses (cards purchased, grading fees, supplies, etc.) are actually a bit more than my sales for 2022. A bit surprising, but good to learn -- and at least I won't be hit with a bigger tax bill than expected. Thanks for posting this.

@thomasgary1185 Год назад

If you sell a card that is pulled from pack how do accurately determine the your cost for that one card when reporting?

@jacoby8903 Год назад

Price of pack divided by cards in pack would equal price of each card

@tombullard6167 Год назад

Yeah definitely not a bad thing at all if claiming profits thanks to the hobby. Hopefully get my procrastinating act together so I can expect a nice 1099 for 2023 since I held off in 2022 bc of changes & being a horrible procrastinator. Also pretty Funny how most don't usually realize how great excel & spreadsheets are until get older... I would completely dismiss after assigment was completed quickly forgetting what I'd learn. Lookin back it was pretty moronic bc daily adding & editing atleast 1 or 2 of the 50 spreadsheets saved... My next goal is to get my PC stuff listed individually for each sport so dont accidentally buy duplicates.

@immabouttobebannedagain1320 Год назад

Cash and Carry. All others will be met at the door with extreme prejudice.

@Daltonnicolas13 Год назад

Great video tyler. Could you possibly do a video explaining examples of what you can write off? Ie: shipping costs, shipping supplies, card supplies, part of rent as office? Internet? Phone bill? Grading fees? Damaged cards?

@collectthegame2449 Год назад

Please share your excel spreadsheet, please and thank you!

@blackbeardgoatjr2434 Год назад

regarding card shows, what if you trade for a card and then sell the card? I'm guessing you would put the card you traded away cost as the deduction? I hate taxes!

@CommonScentsAintSoCommonNow Год назад

you need a paper trail. meaning you have to keep a record of every transaction and get receipts/invoices whenever possible.

@Kagari123 Год назад

The delay in threshold change is on 2022 earnings and not 2023. The threshold is $600 for 2023 unless amended by Congress or the IRS implements another delay. Until further notice, assume a 1099k is coming from your payment settlement entity at $600.

@TylerShort Год назад

Good correction, I mispoke. 2023 tax filing year for 2022

@buckslayer1210 Год назад

Good information overall however there are tons of specific rules regarding taxes and collectibles. Also things like breaks and card show purchases are a nightmare for tax reporting. If your receipt isn’t itemized, most CPAs will tell you it’s worthless. Take a Walmart receipt for instance, they all simply say “NBA trading cards” and that won’t fly with the tax man.

@gators-rock-tim-t9247 7 месяцев назад

make videos at card shows

@aaronaarcgator_cards2300 Год назад

Really valuable info here. Thanks a lot for covering this topic, Tyler.

@TylerShort Год назад

No problem Aaron! Glad it was helpful!

@thevault2317 Год назад

Damn... I had a 1400 cards that I purchased in the last 2 years the majority of them we're between 20 and $100 each.....I sold 1 a week ago🫤 Aaaand my son ate one👶👀🤷‍♂️

@raymondmartinez3321 Год назад

Might b a dumb question What if you just buy cards boxes hobby boxes open all of them and keep cards in totes as a long term investment can you say that’s a business just like buying land for just say 40k then 5 years from now it’s worth 50k

@Mike_The_Hog_A_Nator Год назад

I have a huge box of beautiful condition Topps and other sets of Cards that I found at a Garage Sell over 20yrs ago. I bought 2 boxes, 1 was misplaced but I still have 1 with many Nolan Ryan & many other Rookie Cards that back then were worth $35ea (from what I seen on eBay) I have no clue what they are worth now. I need to take them to a shop

@andrewtobias4545 11 месяцев назад

Hi, I heard there was also a higher tax rate for collectibles held for longer than a year. But how would this apply to trades? So say you traded a card that you held for >1 year for another card. Would that new card you got then be subject to the collectible tax (28%) or the short term tax based on income (regular income tax)? And would the buy price be the same price as the card you traded for it?

@DerekBecker-b2w Год назад

If you buy into a random team box break, how would you track that on your taxes? Then how would you give each card a "value" for resale to know what your net profit is?

@robertcremeens3166 Год назад

I dont totally object to this being taxed. What I do object to are the classifications of the taxation. I don't think this is truly a business and frankly the hobby classification is too cruel to taxpayers. They need to come up with a more reasonable and acceptable method to tax. I also think you could attempt to classify gains as capital gains and losses. That may or may not help your individual situation. Definitely have to keep good records regardless. Right now I have a feeling Congress & IRS will change the reporting again. My best guess is that they will up the limit from $600 to higher. Just guessing but I think that is coming.

@TylerShort Год назад

I'm right there with you. I didn't want to take this video in the direction of giving my opinion on taxation, but moreseo with the current set of circumstances, what everyone should do to legally lower thair tax liability and this is very surface level stuff. Most people are not tracking/keeping receipts/logging cash purchases at all and it absolutely is opening them up to a huge tax bill if not this year, next year, or the year after. But yes, tax reform, and the fact that the stingy freaking government is inserting their pesky hands into the pockets of everyday americans trying to get ahead is quite annoying. That's where 50% of my audience likely disagrees and it turns into a debate which isn't where I want this discussion to go, but I'm with you

@mc386106 Год назад

Why is the hobby classification too cruel? The only thing that says is you can’t spend $10k on sports cards to build your collection, sell $2k in cards and then claim a “loss” to reduce your income for tax purposes because you’re building a collection for yourself. If it’s truly a hobby, you spend more than you make pretty much every single year and don’t pay taxes on your sales because you’re selling less than you spend, especially if you rip wax. If you’re doing it to make money, then your income should be taxed. I don’t get quite why this is so complicated for so many.

@mc386106 Год назад

I got a response to this that I think made clear my statement confused someone, so I want to clear this up even though the reply was deleted. My statement above is that if you collect cards as a hobby, you don't get to claim losses ever, but you also only get taxes if you have sales above expenses. For example, if all you do to build a collection is rip wax, then that is the cost of your hobby for the year because you can't really apply the cost of the box to individual cards in the box. If you sell $5k in cards and spend $7k ripping wax, you have $5k in income BUT you get to claim $5k in expenses to arrive at a net 0. The only thing you can't do is claim $7k in expenses for a loss of $2k because you aren't running a business. I do think there could be ways to clean things up, like allowing capital gains for cards you pull this year and sell 10 years from now. Otherwise, my point was simply that true collectors and hobby participants will rarely ever pay taxes on sales because they almost always spend more building their hobby and ripping wax than they make via selling. You need to still keep really good records, especially if you buy singles because that gives you a "basis" for the cards. However, for hobby participants, it's more about making sure you track purchases, especially of wax you open, to be able to reduce the income from your sales as much as possible.

@elizaward2092 7 месяцев назад

It looks like they delayed the change again? So does that mean if we are under 20k, we do not need to file?

@jaegerchristensen6106 Год назад

Do you have a link or video showing how you track your inventory/expenses? Would be super helpful. Thanks!

@joeymars6130 Год назад

What if I bought the card on ebay for $500 and went to a card show and traded it with 500 cash on top for a card worth 1k. How would I go about reporting that?

@Rygeezy Год назад

Thanks for the information. Can you post a link to the video you mentioned that goes through your excel spreadsheet and expense tracking process?

@Noah-jr5sh Год назад

Went 9 for 10 on my first order with psa can't complain

@TylerShort Год назад

Heck yeah dude, I think I saw your post in the PSA grading thread. Congrats. Now they have hooked you!

@Noah-jr5sh Год назад

@@TylerShort thank you thats me i've really enjoyed watching your videos - look forward to more!

@livinwithlt Год назад

Thanks for this video, man. Appreciate your work 🤙🏽

@Crocodonk Год назад

Did you make the video about how you do your spreadsheets?

@aduncaroo Год назад

Awesome to hear the clear value tax shoutout. That guy is great

@cornchips4 Год назад

Did you make your own Excel spreadsheet or did you use someone's existing spreadsheet?

@TylerShort Год назад

I made my own and started from scratch. I can do a vid recapping on how to organize. Gonna warn, it is manual. There are a few ways to automate in a couple of different ways...kind of, but this does require some manual oversite and record keeping

@elkshed Год назад

Nice video, and cool hat I live in Helena!

@ZiggyNo Год назад

Great video. Sharing.

@warhammerfaction Год назад

So is someone spent 5k on breaks and only sold 2k worth of cards would you need to report that

@gators-rock-tim-t9247 7 месяцев назад

yes b/c you made 2k of income

@handyadvice Год назад

No one but an irs employee would ever make this type of video. I sell all my cards for a dollar and tax was already paid for ...on the pack.

@seegs1491 Год назад

Do you purchase cards at shows through paypal, or do you pay with cash and ask the seller for a receipt?

@TylerShort Год назад

I always ask to pay with paypal. I've walked away from tables if they only offer cash. Yes, I can carry a receipt book and have them fill it out but honestly the more manual receipts you have, the more complicated taxes become. Having everything together in a paypal summary makes like and tracking so much better so that is my preference. To appease the seller, I always state I will pay the extra 2.9% on top of the price we negotiated to make them feel better. I don't want to do friends and family as too much of that will flag your account (don't need that as I buy a lot). So I pay for convenience, and just factor that into the price I settle on.

@Nightflux_Hobbies Год назад

Thank You!

@brandonmartin9117 Год назад

Hey love your videos just started selling some of my old cards last year sold around 1300 in sales but I wouldn’t say I profited that much considering what it cost for the card and shipping. I haven’t made a spreadsheet on it cause I do it for fun and use the money to bye more card I like I just don’t want the irs saying I owe them a bunch of money at the end of the year what do think I should do?

@TylerShort Год назад

Thanks for checking me out Brandon, I would say to play it safe, with each purchase that you make, whether it be eBay or paypal, or in person, stash away every receipt. If folks want a more in detail process for how I do it, I can go through it but I will use the following: 1) Annual Paypal transaction report - itemized and summary 2) Tax receipts - take picture with your phone 3) PSA graded reports forms 4) Any supplies bought on Amazon or for me, technology and capital expenses like cameras, computers, etc 5) Any trips logged going to shows, set up fees, admission fees, hotels, airfare 6) Because I have a business, also home office deduction so rent fee breakdown, utility breakdown 7) Phone plan bill as a portion of my phone use is business related Keep all of these in a cloud drive like a dropbox. For me at the end of the year, it's super simple to summarize what I sold gross revenue, what my expenses were for the cards that I sold, what my other expenses were on items 2 through 7, and I hand it off to my CPA and they do the rest of it. Even on just $1,000, I would track everything just to be safe, otherwise if the IRS does come knocking and you don't have any proof, 1) you have to hunt down your proof last minute and 2) the proof may not exist as many of these reports disappear after 2-3 years

@brandonmartin9117 Год назад

@@TylerShort thanks for getting back to me so fast and so informative have a great day

@fralanhernandez2994 Год назад

THANK YOU BROTHER 👍 YOUR AWESOME 🔥🔥

@purplerainsportscards8472 Год назад

You’re

@xbling17 Год назад

What if I get a big hit in retail I can only write off 20 dollars for the cost of the box?

@mc386106 Год назад

Yes and no. If you don’t buy any other cards and sell that one, yes. However, if you buy lots of retail and/or hobby boxes and sell enough, then I would suggest you’re selling enough and all the money you spent to get the cards you sold can be written off (at least to reduce your taxable income from sports card sales to zero if sports cards are just a hobby).

@TylerShort Год назад

Mikes correct, this gets grey and depends on how you want to account for it. You can account in aggregate by looking at all sales in a year relative to all expenses in a year (including Cost of Good sold which includes boxes), or you can itemize everything. I prefer to itemize everything so that it makes it easier to transition year to year and carry inventory over year to year with a cost basis

@mc386106 Год назад

@@TylerShort Absolutely. The issue with wax is that there isn’t really a basis in any one card. I’d account for purchases of individual cards, even in lots of say you buy 20 cards for $100, on a card by card basis. In the 20 cards for $100 example, it’s easy to just say $5 each assuming none were clearly bought for more or less. Any retail ripped during the year could just be an expense in that year, and then none of the cards you get that way would have a value to expense when you sell them.

@teecee4459 11 месяцев назад

That's insane that if you report on personal taxes as a hobby, the IRS doesn't acknowledge the cost of goods sold - essentially more than double taxing you on your costs because it's at a 40% rate far less than what you previously paid on those dollars. Probably best to find a buyer who will pay cash and give them a 10% discount on the current going price and not report anything.

@michaelshomo1149 Год назад

I recently started and do all my buying and selling online, so luckily I don't have any cash transactions. I do keep a spreadsheet of every purchase, sale, etc. I'm mostly a collector, but my revenue on eBay will likely meet the threshold by the end of the year. The part that gets tricky is that I buy old sets, wax and lots. I keep what I want and resell the rest in lots. I don't know how to accurately account for the cost of each card, nor the sale of each card, since I'm not buying and selling them individually. I also don't know what to consider "inventory" vs. cards I'm collecting. I'm sort of in between a hobby and business. I know I'll have to speak to an accountant eventually, but do you have any tips on how to assess the value of individual cards if they're bought and sold in lots?

@montana01 Год назад

I’m no expert… but in general it’s good to keep records/receipts on everything, because you never know when you’ll sell, when they’ll adjust the limitations. (IE: 600$ a year). As for Lots, I’ve heard different accountants do it different, but in general, 100 card lot/ 100$ = 1$ per card. Same with packs/boxes. It’s kind of a gray area and can go for or against you.

@teecee4459 11 месяцев назад

Take the total price of the lot, box, etc and divide by the number of cards - there's your average cost per card

@frankmolino1065 Год назад

How do you itemize single cards that was bought in a lot box? Example buy a box of 1000 cards for 50.00 if I sell each card individually how would this be itemized on a sheet?