Collecting baseball cards

[thill824]

Hello, I enjoy collecting baseball cards. I often change what I’m collecting and like to switch my target cards so I sell previous purchases (usually for a slight loss due to fees) if I buy a card in 2021 for $700 and sell it in 2022 for $650, do I have to fill anything extra out for my taxes? 

[Opus 17]

No, but you need to keep accurate records. You have a taxable gain when you sell personal property for more than you paid for it.  Because tangible personal property is considered capital property, this would be a capital gain and would be taxed as a short term or long term capital gains on schedule D depending on how long you owned the property.   When you sell personal property for less than you paid for it, you have a loss, but that loss is not tax-deductible.

You should be keeping accurate records of your transactions including the purchase date, purchase price, selling date, selling price, and a description of the property. Keep these records for at least four years after the sale of the property, in case of audit. 

[TomK100]

You do not report losses on your personal collectibles (art, coins, baseball cards, etc.).

However, you would report any profit from selling a card(s) as a capital gain.

According to the IRS "Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate."  The rate can be less, depending upon your other income and tax bracket.

Entering Collectibles into TurboTax: 

1. Open your return.
2. Search for collectibles in the search box (upper-right corner).
3. Click on Jump to collectibles.
4. Answer the interview questions.