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Quote:

Originally Posted by Kco (Post 2460134)

1. if you have good record keeping you will pay only on profit which is pocketed.
2. Did you sell other items for a loss at any point to offset any profit gain?
3. If used to trade up or into something bigger you can get around capital gains altogrether if you don't take an outright cash out, depending on how you complete the transaction.

For example if you consign it to an AH, and utilize the final amount it sells for as a credit towards another purchase on that auction, you will not have to pay taxex on the sale.

I thought a collector is not supposed to offset losses.

Quote:

Originally Posted by Peter_Spaeth (Post 2460136)

I thought a collector is not supposed to offset losses.

Anyone can offset a loss, so long as you have proper and legitimate record-keeping.

For example, let's say you bought 3 items at $1,000 each. Let's say a year later two of those items are now worth $500 a piece, and the otber is worth $2,000. If you sell all 3, you've now made back your original investment, you haven't gained a single dollar. This is super simplified obviously, and you'd need record keeping and an ability to show what you bought and sold for, but capital gains is done on a total level in any given year.

If the taxpayer was holding the collectible for personal purposes, the loss realized on a sale of the collectible is a nondeductible personal loss.

Also
https://www.barrons.com/articles/the...es-01624303281

But the tax law banned deductible expenses and like-kind exchanges on collectibles. Investors can only deduct losses. Hobbyists have no tax benefits.

Quote:

Originally Posted by Kco (Post 2460134)

3. If used to trade up or into something bigger you can get around capital gains altogrether if you don't take an outright cash out, depending on how you complete the transaction.

For example if you consign it to an AH, and utilize the final amount it sells for as a credit towards another purchase on that auction, you will not have to pay taxex on the sale.

As Peter notes, this used to be true, but is no longer true. 1031 exchanges, also known as like kind exchanges used to be applicable to all sorts of assets, including cardboard. Beginning with the 2017 tax reform, only real estate qualifies for 1031 exchanges.

So you can no longer trade up by using sales proceeds to buy something else, and avoid tax on the gain.

I mean, I guess you can. I'm not your mother, and no one is going to stop you from doing it. You're just breaking the law, because you have tax due that you're not paying, and if they catch you then it will not be fun when you get to pay the back tax, plus interest, plus penalties.

Honus Wagner portraits still going remarkably strong in eBay auction ended today. E90-2 SGC 1 price almost at same level as SGC 2 and much more than the SGC 1.5 from a year ago. Tip Top PSA Authentic reasonably less than PSA 1 from last month. Comparables in HA.