Why Collectors Avoid Self-Employment Tax on Capital Gains

Avoiding self employment tax on sports card profits

When it comes to sports card sales, how you report them matters. Hobbyists and investors may not be subject to the same self employment tax rules as business owners. Here’s what you need to know.

🔹 Schedule D capital gains from collectibles are not subject to self employment tax
🔹 Self employment tax of 15.3% applies only to Schedule C business income
🔹 Schedule C includes operating expenses that reduce taxable profit
🔹 Hobbyists often avoid self employment tax but must follow IRS classification rules
🔹 Properly separating funds helps establish whether you’re a business or hobby

Watch the whole version here: https://youtu.be/ntSyL22UW3o

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Видео Why Collectors Avoid Self-Employment Tax on Capital Gains канала Sports Card Tax Guy