[Eric72]

The hypothetical below is the way I understand things. If I'm wrong, someone please let me know.

Costs associated with the disposition of an asset should also be taken into account. To keep things simple, I'll use very small numbers.

Let's say you bought 1,000 Joe Shlabotnik cards a few years ago. they've doubled in price, so you sell them off.

You paid $10 each. You sold them at $20 each.

However, you also paid $4 in postage and supplies (bubble mailer, soft sleeve, top loader) for each one you shipped out.

Your total profit is $6 each after all is said and done. You would owe tax on the $6,000 profit.