How will Gamestop Power Packs income be reported on taxes?

JoshuaZ
JoshuaZ Member Posts: 1 Newcomer
in Filing my taxes

I have been buying packs online for Pokemon cards. When you buy a pack you get a random card that could be worth either less, equal, or more of what you paid. Once the card has been revealed you can either hold the card in your PSA vault, ship the card or sell it back with the instant buyback option. I have been using the instant buyback option to buy more packs. Some have been for a loss and some have made money. Would it be considered gambling income and losses or capital income and losses?

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,002 image
    Hi,

    This is a really good question. The cards are classified as "collectibles," and trading and selling them follows specific tax rules. Since you are actually buying a collectible, the profits and losses are treated as capital income and losses.

    Report the income and losses in the Investments and Saving section by reporting the purchase/sale as an investment.

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