Trading Cards/Schedule C

Forum|Forum|1 year ago
February 7, 2025
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In 2024, i began purchasing and selling trading cards on eBay. Like many, i received a 1099 for the first time for the 2024 tax year. My question is, (not real numbers) I made $7000 on my 1099, i have done my deductions for things like shipping, ebay fees, envelopes etc

However, i purchased a few large collections this year. I am curious, how do i enter the purchases i made this year ? For example, i bought a $1000 worth of collections. I want to report these as a purchase for the year and not as inventory. Where/how would i do this, am i going about it the right way ?

Vanessa A

If you made purchases in 2025, they are NOT entered on your 2024 tax return. Only income and expenses that occurred in 2024 would go on the 2024 return. You would have had to make the purchase on or before Dec 31, 2024 as a cash basis tax payer.

When you file your 2025 return you can choose to enter the cost of the cards as supply expenses if you do not want to include them as inventory. The choice is up to you, so either way is fine. To do this, as you walk through the business expense section, after entering your income, you will simply select supplies and enter he $1,000.