In this conversation, Ron McKeefery interviews Jonny Petrucco, known as the sports card tax guy, discussing the intersection of sports card collecting and business. They explore the importance of understanding tax implications, the benefits of forming an LLC, and the necessity of proper bookkeeping. Jonny shares insights on how to track expenses, the significance of margins in profitability, and the current opportunities in the sports card market. The discussion also touches on Jonny's journey in the sports card space and his innovative approach to providing tax services for collectors.TakeawaysUnderstanding the IRS classification of hobby vs. business is crucial.Forming an LLC can provide legal protection and tax benefits.Tracking costs and expenses is essential for profitability.Using bookkeeping software can simplify financial tracking.Cash purchases require careful documentation to avoid issues with the IRS.Specializing in a niche can lead to better opportunities in the market.Margins are important to understand for successful card flipping.Non-sports cards present a unique opportunity for collectors.Personal financial habits impact business financial habits.Creating content can help establish authority in a niche market.Chapters00:00 Introduction to the Sports Card Tax Guy01:09 Understanding Hobby vs. Business Tax Implications04:33 Tracking Purchases and Cost Basis07:35 Bookkeeping Tips for Card Collectors09:52 Cash Purchases and Audit Concerns13:03 The Journey into Sports Cards and YouTube18:03 Understanding Profit Margins in Card Flipping21:45 Opportunities in the Sports Card Market26:19 Strategies for Building a Profitable Card Business29:29 Engaging with the Community and Final ThoughtsKeywordssports cards, tax implications, bookkeeping, card flipping, LLC, accounting, hobby vs business, financial tracking, sports card market, personal collectionsEbay Store: https://www.ebay.com/str/onethousandtruecardsCollX: Search - 1000 Card Project (@Admin1000CardProject)* Let me know when you join, I want to be your first customer. YouTube: https://www.youtube.com/@1000CardProjectInstagram: @1000CardProject Card Dealer Pro: https://v2-carddealerpro.cello.so/Jjhyy9arVzh* Joining with my code gets you an additional 500 scans and me as well. Mailing Supplies:Penny Sleeves - https://amzn.to/4ktWE63Top Loaders - https://amzn.to/3D8o3cDOr Card Savers - https://amzn.to/3Xj6E86Team Bags - https://amzn.to/4gWRts4Tape - https://amzn.to/4gT16IoTape Dispenser - https://amzn.to/4bgqDdbEnvelopes - https://amzn.to/3EVzRj2