Card Tax Reporter

Yes. The IRS classifies sports cards and other collectibles as capital assets. When you sell a card for more than you paid, the profit is a capital gain subject to tax. Collectibles held over one year are taxed at a maximum rate of 28% (the collectibles rate), while cards held under one year are taxed as ordinary income at your marginal tax rate. Even if you sell on eBay, at card shows, or through Facebook groups, these sales are taxable events.

Short-term capital gains apply to cards held for one year or less and are taxed at your ordinary income tax rate (10-37% depending on your bracket). Long-term capital gains apply to cards held for more than one year and are taxed at the collectibles rate of 28% maximum. This means high-income flippers may actually benefit from holding cards longer than one year, while lower-income collectors may see little difference.

Yes, capital losses from card sales can offset capital gains. If your total losses exceed your gains, you can deduct up to $3,000 per year against ordinary income, with excess losses carrying forward to future years. This means a bad year of flipping can reduce your tax bill. Keep detailed records of all purchases and sales, including shipping costs and fees, as these increase your cost basis.

Your cost basis includes the original purchase price plus: shipping costs to receive the card, eBay/platform fees on the purchase side, grading fees (PSA/BGS/CGC/SGC), insurance costs, and sales tax paid. On the selling side, platform fees, shipping costs, and packing materials reduce your net proceeds. The more expenses you track, the lower your taxable gain.

No. This tool provides estimates and educational information about collectibles taxation. Tax law is complex and varies by state. Consult a tax professional for advice specific to your situation, especially if your card selling income exceeds $600/year (the 1099-K threshold for online platforms) or if you operate as a card dealer/business rather than a hobbyist.