I have purchased these collectibles since 2021 and will probably be selling them at some point this year. I have a few questions regarding the sale of these collectibles. I live in Illinois if that matters.
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Will any taxes be based off each individual item or them as a whole?
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Do I have to pay taxes on the sale of these if I do not make a profit?
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Does what year I got some of these matter?
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If I do end up having to pay taxes, what percentage should I set aside for the inevitable tax bill?
Tax implications of selling collectibles?
byu/KingJackson97 inpersonalfinance
Posted by KingJackson97
1 Comment
1. This is basic math.( 2+2)x3% is the same as 2×3% + 2×3%.
2. No. But you have to prove it.
3. No.
4. Your highest income tax bracket you expect to be in this year. They would count as income tax.
What you’re really probably asking is will this get reported to the IRS? Depending on the value, different selling platforms will send you a 1099-MISC for the value that was sold. Then its up to you at the end of the year to prove your cost basis (ie I bought this for $1k and sold for $1k, so I owe nothing on taxes).
Realistically, people sell old things on platforms like ebay and if the dollar figures are low, they never even receive a 1099-MISC. But by the letter of the law, thr IRS requires tou to report all income.