Sale of items through StockX

Gabrielsgrosso · ‎August 31, 2022

During the last year I began selling my sneaker collection through 3rd party websites like StockX. Some items were sold for profit over retail price and some at a loss less than the retail price. Since these were items were purchased over a period of years will the sale of the items be looked (and taxed) as income?

John-H2021 · ‎August 31, 2022

Hello Gabriel,

The income you receive would need to be reported on your tax return and taxed

There are 2 ways to report the income.

1. If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken

2. If it is a business then it would be reported on a schedule C (self-employed income). You would report the 1099 as income and then deduct the expenses you have against making that income.

Here are a few helpful links

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

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Gabrielsgrosso · ‎August 31, 2022

Thank you for your response. One last question, would the original purchase price of the items be considered an “expense” under option 2?

Sale of items through StockX

Self employed

Self employed