How to Track Card Sales for Taxes: A Guide for Hobbyists and Dealers
Whether you are flipping sports cards, selling Magic or Pokémon singles at local shows, or running a value box on eBay, understanding how to track your purchases and sales is essential, not just for your own sanity, but for staying compliant with the IRS.
We work with collectors and side-hustlers who’ve turned their passion into profit. Here’s a practical breakdown of how to keep your records clean and your taxes accurate.
Why Tracking Matters
If you sell trading cards- even casually, you may be required to report that income on your tax return. With platforms like eBay and PayPal now issuing Form 1099-K once you exceed $5,000 in 2024. $2,500 in 2025. $600 in 2026 and after.
Keeping good records helps you:
Accurately calculate your profit
Deduct legitimate business expenses
Defend yourself in case of an audit
Avoid paying more tax than you need to
Tracking Purchases (Cost Basis)
This is where many people get stuck—especially with value boxes or bulk buys. You have two main options:
1. Itemized Tracking (Best for Higher-Value Cards)
Track each card’s purchase date, cost, and source. You can use:
Excel or Google Sheets
Inventory tools like Notion, Airtable, or CollX
Accounting software if you are running a formal business
2. Average Cost Method (Ideal for Value Boxes)
If you buy 1,000 cards for $200, you can treat the cost as $0.20 per card. Every time you sell a card from that lot, your cost basis is $0.20. This is a reasonable method if detailed tracking isn't feasible.
Tracking Sales
Sales should be logged with:
Date of sale
Platform (e.g., eBay, shows, Instagram, etc.)
Selling price
Associated fees (eBay, payment processors, etc.)
For in-person sales, you can use apps like Square or keep a manual sales log. Spreadsheets work well when you are starting out.
Don’t Forget Your Expenses
As a hobbyist-turned-seller, many overlook deductible business expenses. These may include:
Table fees at card shows
Shipping materials
Storage supplies
Software subscriptions (eBay store, inventory tools)
Mileage and travel costs
Internet or phone expenses (proportionate to business use)
If you are filing as a business (Schedule C), these expenses reduce your taxable income.
Hobby vs. Business: Which Are You?
If you sell occasionally and mostly for fun, you may be considered a hobbyist—you must report income, but you can’t deduct expenses or claim losses.
If you sell regularly with an intention to profit, you may qualify as a sole proprietor—in which case, you can deduct legitimate business expenses. You will report this on Schedule C.
If you are unsure, we can help you make the right classification to stay compliant and minimize your tax burden.
Tools to Simplify the Process
Google Sheets or Excel – Free and customizable
QuickBooks Self-Employed – Great for tracking expenses and mileage
CollX, Bindr, or Cardbase – For card-specific inventory
Zapier or automation tools – To streamline online sales data into spreadsheets
Final Thoughts
You don’t need a perfect system to get started—but having a consistent and reasonable way to track your card activity can save you money and stress at tax time.
If you are looking to level up your side hustle or want help preparing your taxes from someone who understands cards, collectibles, and creator-style businesses we are here for you. Contact us today for a personalized consultation.
Disclaimer: This blog provides general information and is not a substitute for personalized tax advice.
