If this is the wrong sub for this i apologize. I'll try and keep this simple.I live in Washington state.
I have a mtg card that has gone up in price astronomically from when i bought/traded for it (5~ years ago). I will probably be selling it online for around 50k. I intend on using that money to buy more cards. I've talked to a few people who i know that deal with high end cards but they have not been able to give me much help since they all have store fronts as a way to write off spending. One suggested i sell and buy with crypto since it's hard to track but coinbase reports to the irs after a certain amount as does paypal/venmo. I'd like to avoid getting audited
I am not a store front, i do not have a business license and i am not treating this as a business expenditure.
So my questions are:
Do i have to pay taxes on the sale even if i use the money to buy more cards?
what would i file under/ what form would i use since i'm not a business? Should i buy a business license to write off the sale/expense?
would this count as capital gains? I have no proof of purchase when i picked the card up (was partly trade for less than a tenth of the price it is now) ?
how much money will the IRS be after and how would i minimize my losses?
Is there a way to treat it like i'm reinvesting the money to not get taxed on it? I've heard that if you sell stocks to buy more stocks you dont get taxed as much
How does trades work into it? When i picked up the card about half the value was done with other cards. Or how does selling cards that i got from trades factor in for taxes?
It does get to a point that if i am losing a lot it is no longer worth it to sell the card since the price difference between what i would be using the money on and what i'm selling the card for is not very large. The only ideas i've really been able to come up with is try to pay someone to do the sale and purchases for me as a trade or to use cash.
Submitted June 05, 2021 at 01:25AM by Dontspeakbroke https://ift.tt/2THMnLw
