October 17, 2025 • 30 mins
Frank/Sports Card CPA returns for Part II of our great conversation. I think you'll enjoy it as much as I did.
Talking points on this episode may include:
*Why Autographs?
*When did he decide to try to get every Hall of Famer.
*Stories of acquisitions.
*Advice to avoid fakes.
*CPA Hobby advice
*Common tax mistakes.
*What can be written off.
*Claiming losses.
Follow us on Social Media:
Website:
https://www.sportscardnationpo....com
https://linktr.ee/Sportscardna...
Merch shop:
https://sports-card-nation.pri...
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Talking points on this episode may include:
*Why Autographs?
*When did he decide to try to get every Hall of Famer.
*Stories of acquisitions.
*Advice to avoid fakes.
*CPA Hobby advice
*Common tax mistakes.
*What can be written off.
*Claiming losses.
Follow us on Social Media:
Website:
https://www.sportscardnationpo....com
https://linktr.ee/Sportscardna...
Merch shop:
https://sports-card-nation.pri...
To eliminate pre & post-roll ads
https://www.spreaker.com/podca...
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Sports Guardination hobby is the people Wheely News and Interviews.
It's your number one song. Sports Garnation Hobby is the people.
Speaker 2 (00:17):
Sports Guarnation.
Speaker 3 (00:20):
What is up, everybody?
Speaker 4 (00:21):
Welcome to episode three fifty eight Sports Cardination Frank sports
Card CPA. He's back part two of our conversation from
last week. This gentleman probably has the greatest Hall of
Fame Baseball autograph collection, as over three hundred of the
three hundred and fifty inductees we're gonna but like his
(00:45):
name and tale CPA right, he's a certified public accountant.
A lot of today's combo, not all of it, but
a good percentage of today's combo is going to pertain
to taxes and things you can do as a seller
and buyer. Even so you don't have This isn't just
(01:06):
for dealers, but we're gonna cover a lot of the
you know, what you can write off, what you can claim, tips, tricks,
stuff to keep you out of hopefully trouble, and that
sort of thing. And regardless of whether you're seller or not,
I think you'll find a conversation interesting. Nonetheless, So with
(01:29):
that being said, let's get the show started. Here is
the conclusion of our great conversation with Frank these sports
cards CPA, and on this we're gonna start out here
talking about some tax stuff and tips and tricks, and
it doesn't matter whether you have a sales tax number
(01:50):
or whatnot. We're gonna just kind of carve up a
little bit about what you can and can't do legally.
Very informative and uh and I've been doing doing it
for a long time and I learned a few things
as much as I thought I knew, So I think
you'll find it very interesting.
Speaker 3 (02:09):
So here we go.
Speaker 4 (02:10):
You call yourself, you know, sports card CPA. Obviously you're
not just the CPA on the sports side of the things,
but but you do you do do that. How different
is it, you know, being in a certified public accountant
just in general, How different it is when you're doing
like something for a dealer, whether it's someone who does
(02:30):
it full time as their livelihood or even a weekend
warrior like myself that just does it as you know,
a supplementary And.
Speaker 2 (02:40):
Well, I mean, I don't want to get I don't
get too lost in the weeds with viewers, So it
depends a little bit different. These full time dealers that
do it, they can establish themselves as a company and
if the file separate company tax return. Whereas John people
like yourself as a week in Warrior, you're probably a
sole proprietor. I'm not getting tuned. Like I said the Weeds.
(03:00):
You private to file your information on a schedule C.
But if I can back up just a few years
to twenty twenty, I'll give you a quick background. Mike
moynihan and Ty Wilson up chasing cardboard in twenty twenty.
Obviously we had the sports card boom, and so all
these collectors turned into dealers. Whereas they would buy sports
(03:21):
cards and they were flipping them very quickly, and all
of a sudden they got something called the ten ninety
nine and they didn't know what to do, and so
they brought me on their channel and at the just
to talk about like what to do with these ten
ninety nines. And we call this the hobby, the hobby,
the hobby. But the truth is, and this is not
a bad thing. I understand this. And there's like even
(03:42):
little kids now, who are some of my clients. If
you're selling more than six hundred dollars a year, really
you're selling anything for that matter, it's a business. It's
no longer a hobby. Even if you're taking something, if
you're opening or breaking cards and packs, pulling stuff out
for yourself, as long as you're turning around and reselling
your opera a business. And of course the government wants
(04:02):
I mean, they're gonna get, but they want some of
the taxes on your profit.
Speaker 3 (04:06):
Yeah, no doubt.
Speaker 4 (04:07):
And and you know, I know, like I have dealer
friends of mine who do their own taxes. I use
a guy that I've used. Uh, he's not he doesn't
he doesn't specialize in sports cards. But he's done my
taxes here locally for thirty plus years. I say mine,
but my wife's and we filed jointly and then like
you said, the schedules. See, so he's done it for
(04:29):
for a long time. I'm comfortable with him. And and
you know, to my dealer friends who do it themselves,
I'm like, man, you know, it's so like you don't
know all the rules. You could be you know, and
that's a two way street. I think you'll agree with
me too. They may not be writing something off that
they could, or they may be writing something off that
(04:51):
they can't and get themselves in trouble. So I always
tell them, like buck up and just have someone who
this is what they do for for a living and
knows the landscape and the rules which can change every year.
And usually do I mean, would you agree with that
that advice?
Speaker 2 (05:10):
I mean, without getting too political, usually the tax laws
change whenever there's a new administration in office. Well, and
I'll leave it at that. So Biden being the exception.
Let's say he wasn't in that long and there was COVID,
but like when Trump came into office. Originally this is
not pro anti Trump. I'm just staying facts here. The
tax laws changed tremendously, especially for individuals like yourself, the
(05:35):
Weeken warriors at file schedules in terms of what became deductible,
what's not deductible, and what blows my mind every year,
let's say, come January February. I'm sure we all read
the blowout forums. There's like a CPA like Tax Advice
Blowout Form, and everyone's an armchair accountant and they think
they know the answer to everything, and everyone has different
(05:57):
opinions of what you can deduct, what you can't deduct.
And I would tell everyone John, yourself, full time dealers,
anyone that plans on finally, a tax return related to
the sports card industry. Buying, I mean, buying is kind
of tough for like if you're a hobbyist like me,
but if you sold anything, like we're in October now,
even though the weather says differently, this is the time
(06:18):
to start planning for year end because once the book's closed,
once January first arrives, your numbers are pretty much locked
in stone. You have the opportunity right now to work
with your accountant. And again, we've had a good year
in the sports card industry. I pay attention, even though
I don't collect sports card as much anymore, I pay
attention to the hobby tremendously to help my clients. And
(06:40):
so this year was a pretty good year, I mean.
And so now is the time the tax plan for
the end of the year, because the goal is to
give Uncle Sam obviously nothing.
Speaker 4 (06:50):
Yeah, that's that is the goal, is the goal. I
appreciate you saying that because sometimes we don't talk about it, right.
And remember, if you work in too like you know
you're paying, you're.
Speaker 3 (07:02):
Paying the taxes.
Speaker 4 (07:03):
You want to either not get anything back because if
you get it back when usually I do so, I'm
sort of a hypocrite sorder here, you've let the government
hold your money sort of interest free for that time
period till you get it back. A couple of questions here.
We're talking about whether something's a tax right off or not.
(07:25):
I have this debate with my dealer friends.
Speaker 3 (07:27):
Yeah.
Speaker 4 (07:28):
Like, so I'll go to dinner with some dealer friends
after the show. We'll talk about the show, maybe what
we bought or sold, and I keep the receipt. It's
they're not crazy, you know me. Yeah, me and my buddy,
I have a debate about this. He's like, no, there
was no we didn't make a business transaction.
Speaker 3 (07:48):
That's not a write off.
Speaker 2 (07:50):
Absolutely not true, Absolutely not true. I mean that's like
saying when you go to a show, if you don't
make any money at the show, you can't write off
your expense. So as long as business is being conducted,
you're talking business, you're educating. For example, I could go
to a conference tomorrow. I'm not making any money at
the conference. I'm not networking at this conference, but I'm
(08:10):
learning talking business one hundred percent. Watch it, Okay, that's deductible.
There are limits to meals and entertainment like fifty percent
and really entertainment. Again with the Trump administration, it's come
much more of a gray area, but meals fifty percent deductible.
I remember watching a real sports I've talked about this before,
and this is right during the boom, and there were
(08:32):
dealers going on private planes to the national Those private
planes were one hundred percent deductible because it's a travel expense.
Because of COVID, was fully deductible. Now granted, if they
only made forty thousand, they paid fifty thousand for the flight.
I mean, doesn't mean they're going to get money back necessarily,
but definitely was.
Speaker 3 (08:48):
The Alright, next time I talked to you, pay job.
Speaker 2 (08:51):
If you don't pay, you can't deduct it. Okay, you
can't have someone else pay that you take the.
Speaker 4 (08:55):
Yeah, yeah, yeah, I'm paying for my ownkay.
Speaker 2 (09:00):
Duck that meal fifty percent? Yes, you deduct that meal?
Speaker 3 (09:03):
All right, thank you.
Speaker 4 (09:04):
I'm the next time I talked to him, I'm gonna say, uh,
you lost, because he's claiming zero.
Speaker 3 (09:10):
He's like you, he went.
Speaker 4 (09:11):
He even jokes it'd be like, yeah, when you go
to prison, uh for text for I'll come visit you.
Speaker 2 (09:17):
No, no, no, when you have money on your pocket
to pay for the next meal, because you got your
deductions back and he doesn't, you can brag to him.
Speaker 4 (09:23):
Yeah, So here's here's another question you mentioned, Like you know,
you learn the hard way about buying through a cut auto.
Let's say, and I don't, I will use someone else,
not you. Someone else buys an autograph for ten thousand
dollars yep, and then it turned out to be a figazi. Yes, Like,
let's and let me ask you that this way. They're
(09:44):
a deal they're a full time dealer. So this is
what they do for their livelihood. They buy this item
and whatever could be an autograph a card, it turned
out to be uh fake, And it's.
Speaker 2 (09:57):
Ten practical John. For a second, Let's say you go
into its time thousand dollars breaking, you get nothing. You
get a ten cent card, so which is almost the
same thing as long as you're basically disposing that ten
cent card, the whole ten thousand dollars break, the whole
ten thousand dollars fake autograph, all of that. So when
you're in the business, you're not a collector like myself
(10:18):
and not turning around is deductible. Now, it's not one
for one in the sense that if I buy a
ten thousand dollars break, I get a ten thousand dollars
art that's fake. I get to deduct ten thousand dollars.
So it doesn't work one for one like that, but
one hundred percent it's deductible. In the year you love
those of it.
Speaker 3 (10:37):
It's a loss off.
Speaker 2 (10:38):
It is a loss one hundred percent. And so that's
how I deal with more breakers that you probably can
imagine a lot of them you probably heard of and
do their tax returns, and like, this is why they
go into these huge breaks. It's kind of like gamble.
What kind of it is like gamble? Let's be honest,
I'm surprised. I'm almost surprised that the government hasn't gotten
(10:59):
more regulated on these breaks.
Speaker 4 (11:01):
Do you think do you take that somewhere coming down
the turnpike potentially, or do you think that bigger fish
to fry or.
Speaker 2 (11:09):
I think I mean, as a CPA, I think they're
leaving money on the table. I remember a couple of
years ago they changed the ten ninety nine rules. They
said they were going to lower from twenty thousand down
to six hundred dollars. So, in other words, if you
sold more than twenty it used to be if you
sold more than twenty thousand dollars and two hundred transactions,
you got a ten ninety nine. Then COVID came, they
(11:30):
gave money out like water. They said, we got to
get some of this money back, So instead of giving
twenty thousand dollars, we're going to lower that twenty thousand
dollars threshold to six hundred dollars. And I would get
I would literally call the auction houses like, okay, someone
sells from you, you pay them a twenty thousand dollars check
are you going to ten ninety nine number? And some
would say yes, someone say no, And that would literally
(11:50):
determine whether or not you're gonna because that's let's say
a one third. So if you made twenty thousand dollars,
you're paying a third of that to the government versus
paying nothing. That's a lot, and that's all in the
auction house's I shouldn't say it. Telling you if you
got money every penny you receive is theoretically deductive, but
people will claim, oh, I never got a tenninety nine
and I didn't know and play stupid. But again back
to my point, the government recently just increased that six
(12:12):
hundred dollars this year back to twenty thousand dollars, which
obviously will decrease the amount of taxes theories. So when
it comes back to breaking boxes, to me, it's almost
no different than gambling. So if you win something market
value and more than a certain amount of money, I
think it should be taxed. This is me as the CPA.
So I think it will happen. I mean, no, I'm
(12:34):
sure you read about the IRS just had a huge,
like let go of a tremendous amount of people. I
mean in our industry, we're joking. There's no one left
at the IRS except for computers in AI, So I
mean it would be tough to enforce. I think Facebook Live,
whatnot and all these other apps is still kind of
the wild West. So do I think it should be taxed? Absolutely?
(12:55):
Do I think it'll happen in the next It won't
happen at least. While Trump's President's Republicans said maybe there's
a change in office, that's maybe one thing on there.
Because they're leaving millions and millions of dollars on it
I'll put you well.
Speaker 4 (13:06):
Yeah, i'll put you a little bit on on the
on the hot seat.
Speaker 2 (13:11):
I love it for you're gonna get my honest here.
I don't sugarcoat anything.
Speaker 4 (13:15):
As someone who does taxes for for like dealers. What's
the number one mistake hobby dealers make when it comes
to filing taxes or is it? Is it as simple
as not keeping receipts?
Speaker 2 (13:29):
No, I'll tell you what. It's simple. Ass It's as
simple as like your friends that say I can do
this on my and don't keep accurate inventory. They think
there's a misconception in the hobby and I see this
all the time. That's okay. Whenever I spend a dollar,
I can deduct a dollar in the year I spend it,
not in the year I sell it, if that makes
(13:51):
any sense at all. So if you buy inventory, let's
say in twenty twenty five, but you don't sell it
into twenty twenty six, they think you can deduct that
inventory rate in the year you sell it. We call
that cash basis. And the irs put out some very
very specific le saying no, they're only under some very
unique circumstances. Can like baseball card dealers and stuff like that. Ever,
(14:14):
deduct those expenses in the year in which you buy
and not you sell it.
Speaker 3 (14:19):
Yeah, yeah, and I knew that, I know firsthand and personally.
Speaker 2 (14:23):
But everyone I'm blowing forums things otherwise. I's want to
make it clear that, yeah, I.
Speaker 5 (14:28):
Get you are listening to the sportscard Nation podcast. We'll
be right back after this break. For nearly fifty years,
Sports Collectors Digest has been the voice of the hobby,
bringing you comprehensive coverage of the sports collectible industry from
industry news, auction results, market analysis, and in depth stories
(14:49):
about collectors and their collections. Sports Collectors Digest has everything
you need to know about the hobby. SCD is also
your leading source for listings of or it's collectible dealers,
card shops, card shows, and the latest from the industry's
top companies. To check out all the latest news or
to subscribe to the hobby's oldest magazine, visit Sports Collectors
(15:12):
Digest dot com or call one eight hundred eight two
nine fifty five sixty one.
Speaker 1 (15:22):
We back.
Speaker 4 (15:26):
Now you see all these videos, I'm sure you've seen
them too, Frank. Where people you know contact creators who
are also dealers, they set up the camera at their table,
and you see.
Speaker 3 (15:36):
Them buying love.
Speaker 4 (15:37):
I'm buying a five figure deal from just someone comes
up to their table with a zion case, and again
I'm not there. I'm not there. All you know in
person necessary to see the deal. But in transactions, may
they spend ten or twelve grand? They get who knows
how many cards or cards, and you don't see any
(15:57):
sort of other than the cash itself. You don't see
any sort of uh. And if it's a cash deal,
there's really no there's it's not traceable. How can if
that person is doing taxes, how can that be a
business suspense without sort of a receipt? Anytime? Let me
you just use myself for an example. Anytime I've bought
(16:18):
something high three figures or four figures from somebody, I
always have them signed, even like a piece of paper.
You know the day pretty much that I bought so
much so many cards for the amount of and they
sign it with their with their name and they print
their name. Is that the right way to do it?
(16:40):
When a deal happens at a show like that?
Speaker 3 (16:43):
Uh? For for tax purposes? What should a dealer be doing?
Amy Steller for that matter, let's get technical.
Speaker 2 (16:50):
I'm using air cotes case you're listening to. Technically, any
time you cash trades hands, the buyer is supposed to
give the seller a receipt, like going to the gas station,
you buy gas, you get a retex. I remember going
back to the twenty twenty one National, the first national
after COVID, this is one that's six hundred dollars supposed
(17:11):
to come in and everywhere cash or shading hats. I
wanted to buy a thousand dollars autograph from an old
time dealer, and I was gonna pay a credit card.
I will not take your credit card. I will only
take cash. And the reason is cash is so hard
to be honest, So the receipts are not taking place now. Theoretically, John,
anytime you sell a card, any dollar, every single dollar
(17:33):
per the irs is taxable, every single time you sell
a card. Now you're keeping track of that. I don't
know the odds of you getting audited just without any background,
assuming you're not a zillionaire, is about point oh twer cent.
And when they do audit you, they're not gonna audit
your entire ten forty eleven to twenty whatever form they're
gonna audit a single line item in there. So if
(17:55):
push came to the shove, you filed your grocer receipt schedule,
seat total groceries and they would say, okay, prove to
me you made twenty thousand dollars and you had them
sign something. That may suffice, But the odds of that happening,
I gotta be honest, are closer zero. There's better odds,
honestly of let's say the Tigers would themself right now
be being a Tiger fan.
Speaker 4 (18:16):
Well, let's again make it a sports show.
Speaker 3 (18:19):
Aj Hinch is one heck of manager.
Speaker 2 (18:22):
So that's to get the most at times. So so,
like I would say, so, theoretically, every time you sell
a car, you get a dollar, you should be taxed
on that dollar.
Speaker 4 (18:33):
Yeah, what about the scenario that I meant, like, you know,
I buy, someone comes up to my table and I
give them I buy something or or most the.
Speaker 3 (18:43):
Person you sold and I give them eighteen hundred dollars.
Speaker 2 (18:46):
So theoretically the onus is on the person that got
the cash to report the cash. Now, again let's very tough,
but again theoretically it's on them, not on me.
Speaker 4 (18:57):
But can I claim And when I say claik, can
I say that eighteen hundred dollars is a business expense
without the receipt, without them signings.
Speaker 2 (19:06):
Well, absolutely, because it is a business expense. I mean,
the receipt proves it. But regardless, your inventory went up,
assuming the cars were worth eighteen hundred dollars.
Speaker 4 (19:14):
Let's say, you know, well, chances is probably more if
I paid eighteen hundred dollars.
Speaker 2 (19:19):
Yeah, whatever, So whatever I mean, I won't get to
cost basis right now, but really it's eighteen hundred dollars.
If you bought one card for eighteen hundred dollars, your
inventory will go up eighteen hundred dollars. And let's say
you sell that card down the line for two thousand.
Again was picking numbers. You're gonna have a gain of
two hundred dollars, so you're gonna have a gross proceeds
two thousand dollars. You're gonna have cost a good sold
(19:39):
of eighteen hundred dollars. You're gonna have a profit of
two hundred dollars before all the convention expenses and everything
else like that.
Speaker 4 (19:46):
Yeah, And and the fact that I didn't get a
receipt from the seller I'm still okay, Like, yeah, your
government can't say, hey, how do we know how do
we know you're not just saying you spent that?
Speaker 2 (19:58):
I mean if theoretically they can be really, I mean
you can get that that I sold this for you
for eighteen hundred dollars. I mean that's great proof. It's
more than let's say, ninety nine percent of my clients.
But I mean it doesn't hurt. I mean, not only
that you. The other thing is to keep in mind
is your inventory. John, And I don't know how you
(20:19):
keep track of your selling inventory, but you will need
records for yourself. Forget the irs.
Speaker 3 (20:23):
I'm sure I need records even for insurance.
Speaker 2 (20:26):
Yeah. Sure, that's a great point. Also for insurance. Yeah,
you want to know how much you spent on the card.
Speaker 3 (20:32):
Yeah.
Speaker 4 (20:32):
I always try just to just me speaking for myself,
but I always try especially have a significant deal. I
always try to have the seller. Hey, I have like
a legal pad that's in my backpack, and I just
that I bought these legitimately. Here's how much. Sometimes you know,
most people are pretty good. Yeah, I'll do that for you.
(20:53):
Every once in a while, you get someone who probably
doesn't want to necessary claiming on their run too, Like
I don't really want to sign that.
Speaker 2 (21:01):
I'm you know, I'm not gonna mention names. But I
had one person that comes to me as a client
and they're like, listen, this is I want you to do
my tax returns. I don't want to pay anything. But
you made like thirty five thousand dollars. I mean, like,
this is how taxes work. Like, congratulations, you made money.
You're gonna pay taxes. Except I don't want to pay taxes.
My friends don't pay taxes. This is why I'm paying
(21:22):
you so I don't have to pay taxes. I mean,
I'm happy to bend the envelope. Get creative. There's so
many deductions out there that individuals don't realize. I'm real
big proponent of not leaving money on it, but I mean,
at the end of the day, it's very tough to
make five figures and then claim nothing to the irs.
(21:44):
And again, I just put a video out and like
you said, you're a full time dealer, but there's a
lot of people probably listening to this that go, you
know what, I sell a few cards a year, not significantly.
It's not I'm not a weekend warrior. I don't know
if this is really a business, and there are rules
to determine is this really a business or a hobby?
So that's really important to pay attention to alls. And
(22:05):
I would say the number one rule, if I had
to say one rule over all others, it's this is
the money you are receiving from your sales. Are you
reinvesting that back into your inmity, back into sports cards?
Are you taking that money pocketing that? I don't think
going on vacation. There's other rules also, but that's probably
the number one rule if it's a business or a hobby.
Speaker 4 (22:27):
Yeah, and I do a little of both. But again
I'm pretty good. We're keeping good paperwork and good records.
Speaker 1 (22:34):
You know.
Speaker 4 (22:34):
I have a buddy of mine who, like, you know,
like he's in the teaching profession like I am, but
he's also a week in worry.
Speaker 3 (22:42):
Like I am.
Speaker 4 (22:43):
And he he's always almost spending if not what he
made or even more so. And there's times I've even
I do that sometimes. I guess it depends, you know,
what presents itself a different opportunity to buy some stuff.
But yeah, it makes sense, right, But I like the
guy that made the five figures and says, hey, I
(23:04):
don't want to pay taxes.
Speaker 2 (23:05):
Yeah, I mean, I mean, isn't that more American than
anything else?
Speaker 4 (23:10):
The anything I say to my guy and I'm sure
you're here this, Hey do your magic right work. You
do every every rite off I can get, And he's
good like that. And he asked me a lot of questions,
did you do any donations the goodwill close?
Speaker 2 (23:25):
Yeah? So so like yeah, so when I'll be honest,
this is how worse my clients and I know where
we're getting close to the end here. So I have
an email address, uh Frank at Sportscards dot cp a
plural Sportscards dot CPA. I answer any and every question
sents me pretty much pretty much for free. I don't
(23:46):
charge a penny. I'll give you my personal advice, not
my full company advice, but my personal advice. Just doing
this for twenty five plus on what to do a
lot of times people say, you know what, I want
to avoid pay money to avoid aggravate. I don't want
to think about it. So that's when we come on.
Me and my partner associated we sit down, we analyze,
(24:08):
and a lot of times they've doing this for a
couple of years and they're old accountant who's I'm sure
a very good accountant knows this. Taxes. But the sports
cards industry, god, I don't say I'm young, but it's
a fairly young person game, especially since twenty twenty in COVID,
so and like they're not really paying attention to all
the deductions that are sitting out there. For the people
(24:28):
like John, I'm'm assuming you're you're deducting your house, your utilities,
your cell phone, your electricity, like all that is deductible. Well, travel,
I will literally do a zoom call included. It's a
flat fee. I zoom with you, and I need an
hour of your time. And this is when I could
(24:49):
sit down and go everything because I find it hard
when I send clients a sheet. They're not thinking everything
they see the sheet. They see okay, rent, I don't
have an office. I don't pay rent. But do you
have a mortgage. Yeah, you're paying rent. You're paying rent
to yourself, but you're paying rent. So like I find
that one hour with the client very beneficial, and that's
why I can really learn the business. And every individual
(25:11):
is breaking versus a full time seller, which is a
week in Warrior like yourself, and uh, I've gotten such
an I have stories. I can't even share it, to
be honest, it's so interesting. In the last five years
since COVID, I've seen the guts of the industry and
the collectors and what they're doing and how they're making money.
It's just fascinating, fascinating. And now Kevin O'Leary getting in
(25:34):
on it. I think it's great from like, if you're
a collector, I mean, we're bringing in big time players.
Speaker 4 (25:40):
And have you ever you know again, no, you don't
have to mention names. And then this will be my
last question for you. Have you ever you know someone
wants you to do their taxes. They're in the hobby,
whether it be full time or not full time, and
you just have a sense like they're they're really I
don't know if shady's the right.
Speaker 3 (25:57):
Word, but they're not being truthful.
Speaker 4 (25:59):
I know, like you can do things legally, but they're
just not giving you the right information where you like,
you're leary yourself, like I'm putting my name on this,
where you've turned them away and say I'm.
Speaker 2 (26:11):
Not going to Yeah, I've never turned out even the
person that said I don't want to pay tax as
I was able to talk to this person and convince
them that you got to pay something. I'm not the IRS.
I don't work for the IRS. I work against the IR.
I don't audit you. John, If you were coming to
me as a client and you gave me numbers, as
long as they appear reasonable, I am not here to
(26:32):
second guess you. That is not my job, and that's
the IRS's job. So I sit down with my clients
and we work with them, not with the IRS, not
with the government. See, okay, this is the most reasonably
thing possible. And usually when I sit down and I
explain to them what we're doing and why we're doing it,
(26:52):
they're pretty reasonable. So if someone came to me said,
for example, that he said, I have no inventories, I
sold it all this even though I looked at his
website and there's inventory up the was zoo. I go, listen,
I'm not the I r S. But if the I
R S were to look at your website here, they'll say,
they're gonna say, so, let's sit back, let's re evaluate.
(27:15):
And so I'm a pretty relatable guy, I like to think,
so i'd like to work with the clients. I've never
said no to a client. I imagine I could turn
them away, but I've never turned away a client. I
have very good relationships with my clients, and I'm very
proud of that.
Speaker 4 (27:28):
Yeah, that's cool and good to hear. I just wondered
how you know that, dynamics.
Speaker 2 (27:34):
I don't want you to pay taxes. I'm not here
to work for the government to get paid, but my
goal is to pay you.
Speaker 4 (27:39):
Oh you could work for if you could work for
an I R S. If you wanted to be on
that side of that.
Speaker 2 (27:43):
Yeah, yeah, I'd be worried about my joby No, So
with dog.
Speaker 4 (27:49):
Well, Frank, thank you for for you know, giving your
time and being so uh forthright and and a lot
of a lot of a lot of great information all
right there. And uh you know, like you said, you
answer questions from pro.
Speaker 2 (28:04):
Bono absolutely absolutely, I have cop of them. Do my
taxes for me? And I'm not going to pay you
that I won't answer. Yeah, simple task question, I'm happy
to do it. I literally, during COVID got probably a thousand,
easily one thousand year. Every single one was responded to.
Speaker 3 (28:19):
Yeah, well that's that's that tells you what kind of
person you are.
Speaker 2 (28:23):
And thank you.
Speaker 3 (28:24):
Really really, I'm.
Speaker 2 (28:25):
Sure to help the hobby, the business, the collector or whatever,
the whole thing.
Speaker 3 (28:28):
Yeah, yeah, no, we appreciate it. Thank you. Before I
let you go.
Speaker 4 (28:34):
As always, the guest gets the final word put out there,
say that email again.
Speaker 2 (28:39):
Website, YouTube Frank at Sportscards dot c p A. I
have a YouTube channel as well. I used to be
Baseball Hall of Fame Autographs. Now it's sports Cards PA.
I talk about the latest tax issues. And I also
love talking autographs, love talking autographs. I do love the hobby.
For me, it's a hobby I don't yeah.
Speaker 4 (29:00):
Yeah, And if you think you have something that one
of those fifty or so that Frank needs, you know.
Speaker 2 (29:09):
Laying around, please contact me. I'll do your taxes for free.
Speaker 3 (29:13):
There you go. It can't beat that deal. You can't
be free.
Speaker 4 (29:16):
Is the best deal you can get. So well, Frank,
I appreciate man. This was a blast. I had a
we'll have to do it again.
Speaker 2 (29:23):
We don't have to chapefully all right.
Speaker 4 (29:27):
Yeah sounds good, Thanks Frank, take care great having Frank
on and h I spoke to him afterwards. We're going
to have him back on. There's so much stuff that
we didn't even get to and and I'm not even
talking just tax stuff, but collecting and and all sorts
of other stuff, so, uh, autograph and meeting people in person.
(29:49):
So we'll have them back and tackle uh some of
the stuff that we didn't get to on these two episodes.
Speaker 3 (29:57):
So again, that was part two.
Speaker 1 (29:59):
Uh.
Speaker 4 (29:59):
If you enjoyed yeah, but didn't hear part one, go
back a week episode three point fifty seven and catch
that episode. So with that being said, we're gonna hear
from our hobby is the People Announcer of the Week,
and then wrap up to this week's episode.
Speaker 1 (30:16):
Time for our hobby is the People Announcer of the Week.
Speaker 2 (30:23):
Hey, it's Chris Carlin formerly from Upper Deck now with Collectors.
Remember the hobby is the People.
Speaker 1 (30:29):
If you'd like to be the hobby is the People
Announcer of the Week, to a one four MP three
file and send it to Sportscard Nation PC at gmail
dot com.
Sports Guardination hobby is the people Wheely News and Interviews.
It's your number one song. Sports Garnation Hobby is the people.
Speaker 2 (00:17):
Sports Guarnation.
Speaker 3 (00:20):
What is up, everybody?
Speaker 4 (00:21):
Welcome to episode three fifty eight Sports Cardination Frank sports
Card CPA. He's back part two of our conversation from
last week. This gentleman probably has the greatest Hall of
Fame Baseball autograph collection, as over three hundred of the
three hundred and fifty inductees we're gonna but like his
(00:45):
name and tale CPA right, he's a certified public accountant.
A lot of today's combo, not all of it, but
a good percentage of today's combo is going to pertain
to taxes and things you can do as a seller
and buyer. Even so you don't have This isn't just
(01:06):
for dealers, but we're gonna cover a lot of the
you know, what you can write off, what you can claim, tips, tricks,
stuff to keep you out of hopefully trouble, and that
sort of thing. And regardless of whether you're seller or not,
I think you'll find a conversation interesting. Nonetheless, So with
(01:29):
that being said, let's get the show started. Here is
the conclusion of our great conversation with Frank these sports
cards CPA, and on this we're gonna start out here
talking about some tax stuff and tips and tricks, and
it doesn't matter whether you have a sales tax number
(01:50):
or whatnot. We're gonna just kind of carve up a
little bit about what you can and can't do legally.
Very informative and uh and I've been doing doing it
for a long time and I learned a few things
as much as I thought I knew, So I think
you'll find it very interesting.
Speaker 3 (02:09):
So here we go.
Speaker 4 (02:10):
You call yourself, you know, sports card CPA. Obviously you're
not just the CPA on the sports side of the things,
but but you do you do do that. How different
is it, you know, being in a certified public accountant
just in general, How different it is when you're doing
like something for a dealer, whether it's someone who does
(02:30):
it full time as their livelihood or even a weekend
warrior like myself that just does it as you know,
a supplementary And.
Speaker 2 (02:40):
Well, I mean, I don't want to get I don't
get too lost in the weeds with viewers, So it
depends a little bit different. These full time dealers that
do it, they can establish themselves as a company and
if the file separate company tax return. Whereas John people
like yourself as a week in Warrior, you're probably a
sole proprietor. I'm not getting tuned. Like I said the Weeds.
(03:00):
You private to file your information on a schedule C.
But if I can back up just a few years
to twenty twenty, I'll give you a quick background. Mike
moynihan and Ty Wilson up chasing cardboard in twenty twenty.
Obviously we had the sports card boom, and so all
these collectors turned into dealers. Whereas they would buy sports
(03:21):
cards and they were flipping them very quickly, and all
of a sudden they got something called the ten ninety
nine and they didn't know what to do, and so
they brought me on their channel and at the just
to talk about like what to do with these ten
ninety nines. And we call this the hobby, the hobby,
the hobby. But the truth is, and this is not
a bad thing. I understand this. And there's like even
(03:42):
little kids now, who are some of my clients. If
you're selling more than six hundred dollars a year, really
you're selling anything for that matter, it's a business. It's
no longer a hobby. Even if you're taking something, if
you're opening or breaking cards and packs, pulling stuff out
for yourself, as long as you're turning around and reselling
your opera a business. And of course the government wants
(04:02):
I mean, they're gonna get, but they want some of
the taxes on your profit.
Speaker 3 (04:06):
Yeah, no doubt.
Speaker 4 (04:07):
And and you know, I know, like I have dealer
friends of mine who do their own taxes. I use
a guy that I've used. Uh, he's not he doesn't
he doesn't specialize in sports cards. But he's done my
taxes here locally for thirty plus years. I say mine,
but my wife's and we filed jointly and then like
you said, the schedules. See, so he's done it for
(04:29):
for a long time. I'm comfortable with him. And and
you know, to my dealer friends who do it themselves,
I'm like, man, you know, it's so like you don't
know all the rules. You could be you know, and
that's a two way street. I think you'll agree with
me too. They may not be writing something off that
they could, or they may be writing something off that
(04:51):
they can't and get themselves in trouble. So I always
tell them, like buck up and just have someone who
this is what they do for for a living and
knows the landscape and the rules which can change every year.
And usually do I mean, would you agree with that
that advice?
Speaker 2 (05:10):
I mean, without getting too political, usually the tax laws
change whenever there's a new administration in office. Well, and
I'll leave it at that. So Biden being the exception.
Let's say he wasn't in that long and there was COVID,
but like when Trump came into office. Originally this is
not pro anti Trump. I'm just staying facts here. The
tax laws changed tremendously, especially for individuals like yourself, the
(05:35):
Weeken warriors at file schedules in terms of what became deductible,
what's not deductible, and what blows my mind every year,
let's say, come January February. I'm sure we all read
the blowout forums. There's like a CPA like Tax Advice
Blowout Form, and everyone's an armchair accountant and they think
they know the answer to everything, and everyone has different
(05:57):
opinions of what you can deduct, what you can't deduct.
And I would tell everyone John, yourself, full time dealers,
anyone that plans on finally, a tax return related to
the sports card industry. Buying, I mean, buying is kind
of tough for like if you're a hobbyist like me,
but if you sold anything, like we're in October now,
even though the weather says differently, this is the time
(06:18):
to start planning for year end because once the book's closed,
once January first arrives, your numbers are pretty much locked
in stone. You have the opportunity right now to work
with your accountant. And again, we've had a good year
in the sports card industry. I pay attention, even though
I don't collect sports card as much anymore, I pay
attention to the hobby tremendously to help my clients. And
(06:40):
so this year was a pretty good year, I mean.
And so now is the time the tax plan for
the end of the year, because the goal is to
give Uncle Sam obviously nothing.
Speaker 4 (06:50):
Yeah, that's that is the goal, is the goal. I
appreciate you saying that because sometimes we don't talk about it, right.
And remember, if you work in too like you know
you're paying, you're.
Speaker 3 (07:02):
Paying the taxes.
Speaker 4 (07:03):
You want to either not get anything back because if
you get it back when usually I do so, I'm
sort of a hypocrite sorder here, you've let the government
hold your money sort of interest free for that time
period till you get it back. A couple of questions here.
We're talking about whether something's a tax right off or not.
(07:25):
I have this debate with my dealer friends.
Speaker 3 (07:27):
Yeah.
Speaker 4 (07:28):
Like, so I'll go to dinner with some dealer friends
after the show. We'll talk about the show, maybe what
we bought or sold, and I keep the receipt. It's
they're not crazy, you know me. Yeah, me and my buddy,
I have a debate about this. He's like, no, there
was no we didn't make a business transaction.
Speaker 3 (07:48):
That's not a write off.
Speaker 2 (07:50):
Absolutely not true, Absolutely not true. I mean that's like
saying when you go to a show, if you don't
make any money at the show, you can't write off
your expense. So as long as business is being conducted,
you're talking business, you're educating. For example, I could go
to a conference tomorrow. I'm not making any money at
the conference. I'm not networking at this conference, but I'm
(08:10):
learning talking business one hundred percent. Watch it, Okay, that's deductible.
There are limits to meals and entertainment like fifty percent
and really entertainment. Again with the Trump administration, it's come
much more of a gray area, but meals fifty percent deductible.
I remember watching a real sports I've talked about this before,
and this is right during the boom, and there were
(08:32):
dealers going on private planes to the national Those private
planes were one hundred percent deductible because it's a travel expense.
Because of COVID, was fully deductible. Now granted, if they
only made forty thousand, they paid fifty thousand for the flight.
I mean, doesn't mean they're going to get money back necessarily,
but definitely was.
Speaker 3 (08:48):
The Alright, next time I talked to you, pay job.
Speaker 2 (08:51):
If you don't pay, you can't deduct it. Okay, you
can't have someone else pay that you take the.
Speaker 4 (08:55):
Yeah, yeah, yeah, I'm paying for my ownkay.
Speaker 2 (09:00):
Duck that meal fifty percent? Yes, you deduct that meal?
Speaker 3 (09:03):
All right, thank you.
Speaker 4 (09:04):
I'm the next time I talked to him, I'm gonna say, uh,
you lost, because he's claiming zero.
Speaker 3 (09:10):
He's like you, he went.
Speaker 4 (09:11):
He even jokes it'd be like, yeah, when you go
to prison, uh for text for I'll come visit you.
Speaker 2 (09:17):
No, no, no, when you have money on your pocket
to pay for the next meal, because you got your
deductions back and he doesn't, you can brag to him.
Speaker 4 (09:23):
Yeah, So here's here's another question you mentioned, Like you know,
you learn the hard way about buying through a cut auto.
Let's say, and I don't, I will use someone else,
not you. Someone else buys an autograph for ten thousand
dollars yep, and then it turned out to be a figazi. Yes, Like,
let's and let me ask you that this way. They're
(09:44):
a deal they're a full time dealer. So this is
what they do for their livelihood. They buy this item
and whatever could be an autograph a card, it turned
out to be uh fake, And it's.
Speaker 2 (09:57):
Ten practical John. For a second, Let's say you go
into its time thousand dollars breaking, you get nothing. You
get a ten cent card, so which is almost the
same thing as long as you're basically disposing that ten
cent card, the whole ten thousand dollars break, the whole
ten thousand dollars fake autograph, all of that. So when
you're in the business, you're not a collector like myself
(10:18):
and not turning around is deductible. Now, it's not one
for one in the sense that if I buy a
ten thousand dollars break, I get a ten thousand dollars
art that's fake. I get to deduct ten thousand dollars.
So it doesn't work one for one like that, but
one hundred percent it's deductible. In the year you love
those of it.
Speaker 3 (10:37):
It's a loss off.
Speaker 2 (10:38):
It is a loss one hundred percent. And so that's
how I deal with more breakers that you probably can
imagine a lot of them you probably heard of and
do their tax returns, and like, this is why they
go into these huge breaks. It's kind of like gamble.
What kind of it is like gamble? Let's be honest,
I'm surprised. I'm almost surprised that the government hasn't gotten
(10:59):
more regulated on these breaks.
Speaker 4 (11:01):
Do you think do you take that somewhere coming down
the turnpike potentially, or do you think that bigger fish
to fry or.
Speaker 2 (11:09):
I think I mean, as a CPA, I think they're
leaving money on the table. I remember a couple of
years ago they changed the ten ninety nine rules. They
said they were going to lower from twenty thousand down
to six hundred dollars. So, in other words, if you
sold more than twenty it used to be if you
sold more than twenty thousand dollars and two hundred transactions,
you got a ten ninety nine. Then COVID came, they
(11:30):
gave money out like water. They said, we got to
get some of this money back, So instead of giving
twenty thousand dollars, we're going to lower that twenty thousand
dollars threshold to six hundred dollars. And I would get
I would literally call the auction houses like, okay, someone
sells from you, you pay them a twenty thousand dollars check
are you going to ten ninety nine number? And some
would say yes, someone say no, And that would literally
(11:50):
determine whether or not you're gonna because that's let's say
a one third. So if you made twenty thousand dollars,
you're paying a third of that to the government versus
paying nothing. That's a lot, and that's all in the
auction house's I shouldn't say it. Telling you if you
got money every penny you receive is theoretically deductive, but
people will claim, oh, I never got a tenninety nine
and I didn't know and play stupid. But again back
to my point, the government recently just increased that six
(12:12):
hundred dollars this year back to twenty thousand dollars, which
obviously will decrease the amount of taxes theories. So when
it comes back to breaking boxes, to me, it's almost
no different than gambling. So if you win something market
value and more than a certain amount of money, I
think it should be taxed. This is me as the CPA.
So I think it will happen. I mean, no, I'm
(12:34):
sure you read about the IRS just had a huge,
like let go of a tremendous amount of people. I
mean in our industry, we're joking. There's no one left
at the IRS except for computers in AI, So I
mean it would be tough to enforce. I think Facebook Live,
whatnot and all these other apps is still kind of
the wild West. So do I think it should be taxed? Absolutely?
(12:55):
Do I think it'll happen in the next It won't
happen at least. While Trump's President's Republicans said maybe there's
a change in office, that's maybe one thing on there.
Because they're leaving millions and millions of dollars on it
I'll put you well.
Speaker 4 (13:06):
Yeah, i'll put you a little bit on on the
on the hot seat.
Speaker 2 (13:11):
I love it for you're gonna get my honest here.
I don't sugarcoat anything.
Speaker 4 (13:15):
As someone who does taxes for for like dealers. What's
the number one mistake hobby dealers make when it comes
to filing taxes or is it? Is it as simple
as not keeping receipts?
Speaker 2 (13:29):
No, I'll tell you what. It's simple. Ass It's as
simple as like your friends that say I can do
this on my and don't keep accurate inventory. They think
there's a misconception in the hobby and I see this
all the time. That's okay. Whenever I spend a dollar,
I can deduct a dollar in the year I spend it,
not in the year I sell it, if that makes
(13:51):
any sense at all. So if you buy inventory, let's
say in twenty twenty five, but you don't sell it
into twenty twenty six, they think you can deduct that
inventory rate in the year you sell it. We call
that cash basis. And the irs put out some very
very specific le saying no, they're only under some very
unique circumstances. Can like baseball card dealers and stuff like that. Ever,
(14:14):
deduct those expenses in the year in which you buy
and not you sell it.
Speaker 3 (14:19):
Yeah, yeah, and I knew that, I know firsthand and personally.
Speaker 2 (14:23):
But everyone I'm blowing forums things otherwise. I's want to
make it clear that, yeah, I.
Speaker 5 (14:28):
Get you are listening to the sportscard Nation podcast. We'll
be right back after this break. For nearly fifty years,
Sports Collectors Digest has been the voice of the hobby,
bringing you comprehensive coverage of the sports collectible industry from
industry news, auction results, market analysis, and in depth stories
(14:49):
about collectors and their collections. Sports Collectors Digest has everything
you need to know about the hobby. SCD is also
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(15:12):
Digest dot com or call one eight hundred eight two
nine fifty five sixty one.
Speaker 1 (15:22):
We back.
Speaker 4 (15:26):
Now you see all these videos, I'm sure you've seen
them too, Frank. Where people you know contact creators who
are also dealers, they set up the camera at their table,
and you see.
Speaker 3 (15:36):
Them buying love.
Speaker 4 (15:37):
I'm buying a five figure deal from just someone comes
up to their table with a zion case, and again
I'm not there. I'm not there. All you know in
person necessary to see the deal. But in transactions, may
they spend ten or twelve grand? They get who knows
how many cards or cards, and you don't see any
(15:57):
sort of other than the cash itself. You don't see
any sort of uh. And if it's a cash deal,
there's really no there's it's not traceable. How can if
that person is doing taxes, how can that be a
business suspense without sort of a receipt? Anytime? Let me
you just use myself for an example. Anytime I've bought
(16:18):
something high three figures or four figures from somebody, I
always have them signed, even like a piece of paper.
You know the day pretty much that I bought so
much so many cards for the amount of and they
sign it with their with their name and they print
their name. Is that the right way to do it?
(16:40):
When a deal happens at a show like that?
Speaker 3 (16:43):
Uh? For for tax purposes? What should a dealer be doing?
Amy Steller for that matter, let's get technical.
Speaker 2 (16:50):
I'm using air cotes case you're listening to. Technically, any
time you cash trades hands, the buyer is supposed to
give the seller a receipt, like going to the gas station,
you buy gas, you get a retex. I remember going
back to the twenty twenty one National, the first national
after COVID, this is one that's six hundred dollars supposed
(17:11):
to come in and everywhere cash or shading hats. I
wanted to buy a thousand dollars autograph from an old
time dealer, and I was gonna pay a credit card.
I will not take your credit card. I will only
take cash. And the reason is cash is so hard
to be honest, So the receipts are not taking place now. Theoretically, John,
anytime you sell a card, any dollar, every single dollar
(17:33):
per the irs is taxable, every single time you sell
a card. Now you're keeping track of that. I don't
know the odds of you getting audited just without any background,
assuming you're not a zillionaire, is about point oh twer cent.
And when they do audit you, they're not gonna audit
your entire ten forty eleven to twenty whatever form they're
gonna audit a single line item in there. So if
(17:55):
push came to the shove, you filed your grocer receipt schedule,
seat total groceries and they would say, okay, prove to
me you made twenty thousand dollars and you had them
sign something. That may suffice, But the odds of that happening,
I gotta be honest, are closer zero. There's better odds,
honestly of let's say the Tigers would themself right now
be being a Tiger fan.
Speaker 4 (18:16):
Well, let's again make it a sports show.
Speaker 3 (18:19):
Aj Hinch is one heck of manager.
Speaker 2 (18:22):
So that's to get the most at times. So so,
like I would say, so, theoretically, every time you sell
a car, you get a dollar, you should be taxed
on that dollar.
Speaker 4 (18:33):
Yeah, what about the scenario that I meant, like, you know,
I buy, someone comes up to my table and I
give them I buy something or or most the.
Speaker 3 (18:43):
Person you sold and I give them eighteen hundred dollars.
Speaker 2 (18:46):
So theoretically the onus is on the person that got
the cash to report the cash. Now, again let's very tough,
but again theoretically it's on them, not on me.
Speaker 4 (18:57):
But can I claim And when I say claik, can
I say that eighteen hundred dollars is a business expense
without the receipt, without them signings.
Speaker 2 (19:06):
Well, absolutely, because it is a business expense. I mean,
the receipt proves it. But regardless, your inventory went up,
assuming the cars were worth eighteen hundred dollars.
Speaker 4 (19:14):
Let's say, you know, well, chances is probably more if
I paid eighteen hundred dollars.
Speaker 2 (19:19):
Yeah, whatever, So whatever I mean, I won't get to
cost basis right now, but really it's eighteen hundred dollars.
If you bought one card for eighteen hundred dollars, your
inventory will go up eighteen hundred dollars. And let's say
you sell that card down the line for two thousand.
Again was picking numbers. You're gonna have a gain of
two hundred dollars, so you're gonna have a gross proceeds
two thousand dollars. You're gonna have cost a good sold
(19:39):
of eighteen hundred dollars. You're gonna have a profit of
two hundred dollars before all the convention expenses and everything
else like that.
Speaker 4 (19:46):
Yeah, And and the fact that I didn't get a
receipt from the seller I'm still okay, Like, yeah, your
government can't say, hey, how do we know how do
we know you're not just saying you spent that?
Speaker 2 (19:58):
I mean if theoretically they can be really, I mean
you can get that that I sold this for you
for eighteen hundred dollars. I mean that's great proof. It's
more than let's say, ninety nine percent of my clients.
But I mean it doesn't hurt. I mean, not only
that you. The other thing is to keep in mind
is your inventory. John, And I don't know how you
(20:19):
keep track of your selling inventory, but you will need
records for yourself. Forget the irs.
Speaker 3 (20:23):
I'm sure I need records even for insurance.
Speaker 2 (20:26):
Yeah. Sure, that's a great point. Also for insurance. Yeah,
you want to know how much you spent on the card.
Speaker 3 (20:32):
Yeah.
Speaker 4 (20:32):
I always try just to just me speaking for myself,
but I always try especially have a significant deal. I
always try to have the seller. Hey, I have like
a legal pad that's in my backpack, and I just
that I bought these legitimately. Here's how much. Sometimes you know,
most people are pretty good. Yeah, I'll do that for you.
(20:53):
Every once in a while, you get someone who probably
doesn't want to necessary claiming on their run too, Like
I don't really want to sign that.
Speaker 2 (21:01):
I'm you know, I'm not gonna mention names. But I
had one person that comes to me as a client
and they're like, listen, this is I want you to do
my tax returns. I don't want to pay anything. But
you made like thirty five thousand dollars. I mean, like,
this is how taxes work. Like, congratulations, you made money.
You're gonna pay taxes. Except I don't want to pay taxes.
My friends don't pay taxes. This is why I'm paying
(21:22):
you so I don't have to pay taxes. I mean,
I'm happy to bend the envelope. Get creative. There's so
many deductions out there that individuals don't realize. I'm real
big proponent of not leaving money on it, but I mean,
at the end of the day, it's very tough to
make five figures and then claim nothing to the irs.
(21:44):
And again, I just put a video out and like
you said, you're a full time dealer, but there's a
lot of people probably listening to this that go, you
know what, I sell a few cards a year, not significantly.
It's not I'm not a weekend warrior. I don't know
if this is really a business, and there are rules
to determine is this really a business or a hobby?
So that's really important to pay attention to alls. And
(22:05):
I would say the number one rule, if I had
to say one rule over all others, it's this is
the money you are receiving from your sales. Are you
reinvesting that back into your inmity, back into sports cards?
Are you taking that money pocketing that? I don't think
going on vacation. There's other rules also, but that's probably
the number one rule if it's a business or a hobby.
Speaker 4 (22:27):
Yeah, and I do a little of both. But again
I'm pretty good. We're keeping good paperwork and good records.
Speaker 1 (22:34):
You know.
Speaker 4 (22:34):
I have a buddy of mine who, like, you know,
like he's in the teaching profession like I am, but
he's also a week in worry.
Speaker 3 (22:42):
Like I am.
Speaker 4 (22:43):
And he he's always almost spending if not what he
made or even more so. And there's times I've even
I do that sometimes. I guess it depends, you know,
what presents itself a different opportunity to buy some stuff.
But yeah, it makes sense, right, But I like the
guy that made the five figures and says, hey, I
(23:04):
don't want to pay taxes.
Speaker 2 (23:05):
Yeah, I mean, I mean, isn't that more American than
anything else?
Speaker 4 (23:10):
The anything I say to my guy and I'm sure
you're here this, Hey do your magic right work. You
do every every rite off I can get, And he's
good like that. And he asked me a lot of questions,
did you do any donations the goodwill close?
Speaker 2 (23:25):
Yeah? So so like yeah, so when I'll be honest,
this is how worse my clients and I know where
we're getting close to the end here. So I have
an email address, uh Frank at Sportscards dot cp a
plural Sportscards dot CPA. I answer any and every question
sents me pretty much pretty much for free. I don't
(23:46):
charge a penny. I'll give you my personal advice, not
my full company advice, but my personal advice. Just doing
this for twenty five plus on what to do a
lot of times people say, you know what, I want
to avoid pay money to avoid aggravate. I don't want
to think about it. So that's when we come on.
Me and my partner associated we sit down, we analyze,
(24:08):
and a lot of times they've doing this for a
couple of years and they're old accountant who's I'm sure
a very good accountant knows this. Taxes. But the sports
cards industry, god, I don't say I'm young, but it's
a fairly young person game, especially since twenty twenty in COVID,
so and like they're not really paying attention to all
the deductions that are sitting out there. For the people
(24:28):
like John, I'm'm assuming you're you're deducting your house, your utilities,
your cell phone, your electricity, like all that is deductible. Well, travel,
I will literally do a zoom call included. It's a
flat fee. I zoom with you, and I need an
hour of your time. And this is when I could
(24:49):
sit down and go everything because I find it hard
when I send clients a sheet. They're not thinking everything
they see the sheet. They see okay, rent, I don't
have an office. I don't pay rent. But do you
have a mortgage. Yeah, you're paying rent. You're paying rent
to yourself, but you're paying rent. So like I find
that one hour with the client very beneficial, and that's
why I can really learn the business. And every individual
(25:11):
is breaking versus a full time seller, which is a
week in Warrior like yourself, and uh, I've gotten such
an I have stories. I can't even share it, to
be honest, it's so interesting. In the last five years
since COVID, I've seen the guts of the industry and
the collectors and what they're doing and how they're making money.
It's just fascinating, fascinating. And now Kevin O'Leary getting in
(25:34):
on it. I think it's great from like, if you're
a collector, I mean, we're bringing in big time players.
Speaker 4 (25:40):
And have you ever you know again, no, you don't
have to mention names. And then this will be my
last question for you. Have you ever you know someone
wants you to do their taxes. They're in the hobby,
whether it be full time or not full time, and
you just have a sense like they're they're really I
don't know if shady's the right.
Speaker 3 (25:57):
Word, but they're not being truthful.
Speaker 4 (25:59):
I know, like you can do things legally, but they're
just not giving you the right information where you like,
you're leary yourself, like I'm putting my name on this,
where you've turned them away and say I'm.
Speaker 2 (26:11):
Not going to Yeah, I've never turned out even the
person that said I don't want to pay tax as
I was able to talk to this person and convince
them that you got to pay something. I'm not the IRS.
I don't work for the IRS. I work against the IR.
I don't audit you. John, If you were coming to
me as a client and you gave me numbers, as
long as they appear reasonable, I am not here to
(26:32):
second guess you. That is not my job, and that's
the IRS's job. So I sit down with my clients
and we work with them, not with the IRS, not
with the government. See, okay, this is the most reasonably
thing possible. And usually when I sit down and I
explain to them what we're doing and why we're doing it,
(26:52):
they're pretty reasonable. So if someone came to me said,
for example, that he said, I have no inventories, I
sold it all this even though I looked at his
website and there's inventory up the was zoo. I go, listen,
I'm not the I r S. But if the I
R S were to look at your website here, they'll say,
they're gonna say, so, let's sit back, let's re evaluate.
(27:15):
And so I'm a pretty relatable guy, I like to think,
so i'd like to work with the clients. I've never
said no to a client. I imagine I could turn
them away, but I've never turned away a client. I
have very good relationships with my clients, and I'm very
proud of that.
Speaker 4 (27:28):
Yeah, that's cool and good to hear. I just wondered
how you know that, dynamics.
Speaker 2 (27:34):
I don't want you to pay taxes. I'm not here
to work for the government to get paid, but my
goal is to pay you.
Speaker 4 (27:39):
Oh you could work for if you could work for
an I R S. If you wanted to be on
that side of that.
Speaker 2 (27:43):
Yeah, yeah, I'd be worried about my joby No, So
with dog.
Speaker 4 (27:49):
Well, Frank, thank you for for you know, giving your
time and being so uh forthright and and a lot
of a lot of a lot of great information all
right there. And uh you know, like you said, you
answer questions from pro.
Speaker 2 (28:04):
Bono absolutely absolutely, I have cop of them. Do my
taxes for me? And I'm not going to pay you
that I won't answer. Yeah, simple task question, I'm happy
to do it. I literally, during COVID got probably a thousand,
easily one thousand year. Every single one was responded to.
Speaker 3 (28:19):
Yeah, well that's that's that tells you what kind of
person you are.
Speaker 2 (28:23):
And thank you.
Speaker 3 (28:24):
Really really, I'm.
Speaker 2 (28:25):
Sure to help the hobby, the business, the collector or whatever,
the whole thing.
Speaker 3 (28:28):
Yeah, yeah, no, we appreciate it. Thank you. Before I
let you go.
Speaker 4 (28:34):
As always, the guest gets the final word put out there,
say that email again.
Speaker 2 (28:39):
Website, YouTube Frank at Sportscards dot c p A. I
have a YouTube channel as well. I used to be
Baseball Hall of Fame Autographs. Now it's sports Cards PA.
I talk about the latest tax issues. And I also
love talking autographs, love talking autographs. I do love the hobby.
For me, it's a hobby I don't yeah.
Speaker 4 (29:00):
Yeah, And if you think you have something that one
of those fifty or so that Frank needs, you know.
Speaker 2 (29:09):
Laying around, please contact me. I'll do your taxes for free.
Speaker 3 (29:13):
There you go. It can't beat that deal. You can't
be free.
Speaker 4 (29:16):
Is the best deal you can get. So well, Frank,
I appreciate man. This was a blast. I had a
we'll have to do it again.
Speaker 2 (29:23):
We don't have to chapefully all right.
Speaker 4 (29:27):
Yeah sounds good, Thanks Frank, take care great having Frank
on and h I spoke to him afterwards. We're going
to have him back on. There's so much stuff that
we didn't even get to and and I'm not even
talking just tax stuff, but collecting and and all sorts
of other stuff, so, uh, autograph and meeting people in person.
(29:49):
So we'll have them back and tackle uh some of
the stuff that we didn't get to on these two episodes.
Speaker 3 (29:57):
So again, that was part two.
Speaker 1 (29:59):
Uh.
Speaker 4 (29:59):
If you enjoyed yeah, but didn't hear part one, go
back a week episode three point fifty seven and catch
that episode. So with that being said, we're gonna hear
from our hobby is the People Announcer of the Week,
and then wrap up to this week's episode.
Speaker 1 (30:16):
Time for our hobby is the People Announcer of the Week.
Speaker 2 (30:23):
Hey, it's Chris Carlin formerly from Upper Deck now with Collectors.
Remember the hobby is the People.
Speaker 1 (30:29):
If you'd like to be the hobby is the People
Announcer of the Week, to a one four MP three
file and send it to Sportscard Nation PC at gmail
dot com.
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