Quote:
Originally Posted by ValKehl
Scott, I would think the IRS would be delighted if the person sold the Ruth and declared a cost basis of $10 on his tax return, thereby paying a significant amount of tax on his profit.
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You are correct. I had it backwards. I shouldn't write responses 3 minutes after waking up. Better example. You sell the 999 1987 commons as a lot for $2 and claim a cost basis of $9990, then bundle that tax loss with other card sales with net gains to reduce income while holding the Ruth in your PC with the remaining cost basis of $10 (until you die and your heirs get the stepped-up basis). This may not end well if you are flagged for the audit.
I am going to stop typing before I give other stupid examples before the caffeine kicks in.