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?
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