Tax Write Offs? 1 1

[LordSherman]

I am considered a self employed contractor as well as I run a few small businesses so I am always looking to reap whatever I can write off wise.  I am by no means a "card seller" however some of my recent grading submissions I made are fully intended to be sold as I do not want to place them in my collection. Would grading fees be something I should consider writing off?  Does anyone else that may deal more specifically in cards and grading possibly for a living do this?  I can see it as a viable business expenses but am curious what others think.

[namisgr]

I don't think you can write off expenses unrelated to your business.  When you sell a graded collectible for a profit, however, you can adjust your gain for the expenses you put into it.

[revat]

1 hour ago, namisgr said:

I don't think you can write off expenses unrelated to your business.  When you sell a graded collectible for a profit, however, you can adjust your gain for the expenses you put into it.

This sounds close enough to correct, of course consult your LOCAL licensed CPA for the best possible answer

You can can kind of think about it like a capital gain that you don't get a lower tax rate on.  Of course keep all your records.  But the IRS does have a 'hobby' section for individual taxes you can look up reasonably easily (make sure you get the year right).

BUT if it makes sense for your personal situation, there may be benefits of creating a separate comic selling company, and you can do a bit of tax planning of major expenditures or sales to 'even things out' with your other businesses (losses in this company one year, gains in this company a different year, etc) such that losses of a given year in a given business may balance out profits in another given business in the same year.  Now I'm not sure that's doable or if you can make the math work (gotta get a business license, spend more administrative and planning time, keep better records, fill out more tax returns, etc).  There MIGHT even be some opportunities for carryforward of losses.

[topcat54]

yep it's right here.

https://www.irs.gov/newsroom/five-things-to-remember-about-hobby-income-and-expenses#:~:text=A taxpayer must report income,taxpayers can claim for hobbies.

[SunilMatu]

Hi guys, I know that this thread is a little old, but I thought you could help me to find an experienced accountant to make a tax plan for me. Ty!