Sports Card Sales

[1986Mike]

I collect sports cards that I have purchased off Ebay. Sometimes I purchase raw cards which are ungraded and send them to one of the grading agencies which adds value to the card and pay a fee per card for the grading service. Other cards are already graded. Periodically, I will send these cards to a storage vault or consignment service where I can store the cards and sell them. I am aware in 2022 that I will probably receive a 1099 for any sales but how will these sales be treated from a tax perspective. I am not a business and entered collecting for the fun. Am I able to deduct the original cost of the card off Ebay which included shipping and sales tax, any storage fees, grading costs, and fees incurred when I sell the card through the vault or consignment company? In some cases, when all these are added up along with a reduction in value in the card market this year the sales price may not recover the original cost of the card and would actually result in a loss. What forms will capture the cost side to offset the income reported.

Thanks

[Bsch4477]

Sounds like you are engaged in a hobby as opposed to a business. In that case you have to report any income but unfortunately cannot deduct any expenses.