As someone who's been running a small collectibles business for a few years, I wanted to add one more consideration that might help - make sure you're thinking about the GST/HST implications on BOTH sides of the transaction if you're registered. When you "purchase" those $120 worth of cards from your customer, you might be eligible to claim input tax credits if the person you're buying from is also GST/HST registered (though this is rare with individual collectors). Most of the time you won't get ITCs since you're buying from consumers, but it's worth understanding the rules. Also, I've found it helpful to set up specific inventory categories in my accounting software for "trade-in inventory" vs "purchased inventory" - makes it easier to track your margins and see how profitable your trade programs actually are. Sometimes what feels like a good deal in the moment doesn't look as great when you factor in all the tax obligations! The separate transaction approach that Dylan mentioned is definitely the way to go. Clean books make everything easier when tax season rolls around.

Just wanted to chime in as someone who went through a CRA audit specifically focused on barter transactions at my hobby shop. The most important thing I learned is that consistency in your valuation method is absolutely critical - more important than being perfectly accurate on every single card. During my audit, the CRA agent was primarily interested in whether I had a reasonable, documented system for determining fair market values, not whether I got every price exactly right. I used a combination of TCGPlayer for singles over $5, Beckett guides for vintage cards, and flat rates for commons/bulk. As long as I could show I applied these methods consistently across all trades, they were satisfied. One practical tip that saved me: I started requiring customers to initial a simple trade form acknowledging the values we agreed on for their cards. This eliminated any potential disputes about whether the values I recorded were actually what was agreed to during the transaction. The audit process was actually pretty straightforward once I could demonstrate I was treating trades as proper buy/sell transactions rather than trying to hide revenue through "discounts." Documentation is your best friend here!

Double check ur filing status too. HOH vs single makes a huge difference with kids

The tax system is such a joke fr fr 🤡

I'm dealing with a similar situation right now and this thread has been super helpful! My daycare provider moved out of state suddenly and left no forwarding info - I have her name and the daycare address but that's it. I paid over $6,000 last year through a mix of check and Venmo. Reading everyone's experiences here, I feel much more confident about filing with the "provider refuses to provide information" option. I've been documenting everything - screenshots of my attempts to reach her through old contact info, copies of all my payment records, even saved the Venmo transaction history. One thing I wanted to add for anyone in this boat - make sure you're claiming the right amounts. I initially thought I could claim everything I paid, but then realized some payments were for late pickup fees and field trips that don't count toward the Child and Dependent Care Credit. Only the actual childcare costs qualify, so double-check what you're including in your total. Thanks everyone for sharing your real experiences with this - it's way more helpful than the vague IRS guidance online!

I just went through this exact situation last month and wanted to share what worked for me. My childcare provider also went completely silent when tax time came around - no response to calls, texts, or even showing up at her house. Here's what I did: I filed with the "provider refuses to provide information" box checked and included a brief written statement with my return explaining my attempts to contact her. I attached screenshots of unanswered texts and a timeline of my contact attempts. The IRS processed my return normally - got my refund in 21 days with the full childcare credit included ($1,100 in my case). No delays, no issues. I think the key is showing you made a good faith effort to get the information. I also want to emphasize what others have said about keeping detailed payment records. I had everything - Venmo transactions, photos of cash payments with dates written on sticky notes, bank statements showing check withdrawals. When you're missing the provider's SSN/EIN, your payment documentation becomes even more critical. Don't let an uncooperative provider cost you money you're legally entitled to claim. File with what you have and let the IRS sort it out if they have questions later!

I'm going through something very similar right now with my ex-husband. One thing I learned from my tax preparer is that you should also keep records of any expenses you paid for your daughter throughout the year - things like clothing, school supplies, extracurricular activities, medical copays, etc. The IRS looks at who provided more than half of the child's support, not just where she lived. Since you mentioned you're the one handling all her paperwork and she lives with you 280+ days, you're clearly the custodial parent. But having those expense records helps prove the support test too, especially if your ex tries to argue that his child support payments mean he provided more support. I'd also suggest taking screenshots of any text messages where he acknowledges that she lives with you most of the time, or where he's inconsistent about paying support. That kind of documentation can be really helpful if the IRS needs to investigate. Good luck with your filing!

Based on all the great advice here, I wanted to share a few additional points that might help you and others in similar situations: First, make sure you understand the "tiebreaker rules" - when both parents could potentially claim a child, the IRS generally awards the exemption to whoever had the child live with them for more nights during the year. With 280+ days, you clearly win this test. Second, keep a simple calendar or log showing which nights your daughter stayed with you versus with her father. This doesn't have to be fancy - even a basic notation on a regular calendar works. This can be invaluable documentation if questioned. Third, since you mentioned he's inconsistent with child support payments, consider keeping a simple spreadsheet tracking what he was supposed to pay versus what he actually paid. This helps demonstrate that you're providing the majority of her financial support. Finally, don't let his threats intimidate you. As the custodial parent providing the majority of support, you have the legal right to claim your daughter. File early, keep good records, and don't second-guess yourself. The tax system is designed to support the parent who is actually doing the day-to-day work of raising the child - which is clearly you. You've got this! File with confidence and get those car repairs taken care of.

I've been through this exact situation and learned the hard way that documentation is absolutely critical. Here's what I wish I had known from the start: 1. Keep ALL your original trading records from the year you had the loss - not just the summary amounts. The IRS can ask for details on specific trades even years later during an audit. 2. Create a master file with your original Schedule D showing the $16K loss, and then add each subsequent year's Schedule D showing how you've applied the carryover. This creates a clear paper trail. 3. Don't rely solely on tax software to track carryovers. I use a simple Excel sheet with columns for: year, beginning carryover, current year gains/losses, amount used against ordinary income, and ending carryover balance. 4. The Capital Loss Carryover Worksheet mentioned by Lucas is key - complete it every year even if your software does the calculation. It's your backup documentation. One thing that surprised me: if you have ANY capital gains in future years, those gains must be offset by your carryover loss BEFORE you can take the $3K deduction against ordinary income. Many people miss this and incorrectly calculate their remaining carryover. The IRS doesn't track this for you, so being organized from day one will save you major headaches later!

As someone who works in tax preparation, I want to emphasize something that hasn't been mentioned yet - the importance of keeping consistent records across tax years, especially if you change tax preparers or software. I've seen clients who had their capital loss carryovers calculated differently by different preparers, leading to either missed deductions or incorrect carryover amounts. The IRS doesn't flag these discrepancies automatically, but they become a real problem during audits. My recommendation: regardless of which method you use to track your carryovers (spreadsheet, tax software, or third-party tools), always cross-reference the carryover amount on your current year's Schedule D with your calculations from the previous year. If there's a discrepancy, figure out why before filing. Also, if you're using a tax preparer, bring them your own carryover tracking records. Don't assume they'll correctly pull the numbers from your prior year return - I've seen mistakes happen when preparers miss carryover amounts or miscalculate how gains offset losses. One last tip: if your capital loss carryover is substantial (like your $16K), consider having a tax professional review your first few years of carryover calculations to make sure you're on the right track. It's worth the cost to avoid years of incorrect filings.