Quote:
Originally Posted by Smarti5051
BobC. Thanks for the very thorough analysis. I should note that my question was a hypothetical, as sadly I do not have a Cracker Jack set. I very much WANT that set, but I do not presently own it. If I had it, I am pretty sure I would die with it (or at least the HOFers in the set), so my heirs would get the stepped up basis. LOL I was just curious how that would work (and similarly how it might work when a collector or dealer acquires a collection). I can honestly say my LEAST enjoyable part of running my business is pulling all of the numbers together for taxes. I have to imagine it is a bit of a nightmare for a card broker that does things by the book.
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No problem, and you're welcome. I figured yours was a question that would ultimately be of interest to some other people on here as well. So I tried to cover a few different scenarios. Hey, if nothing else, now you have a good idea of what you want/need to do if you ever did find yourself in one these situations. And even if you did acquire and then plan on leaving a set like that to your heirs, don't just assume you needn't worry about the set's tax basis. There's already been talk of doing away or otherwise modifying the Stepped-Up Basis rules regarding federal estate taxes. So remember, nothing is permanent!
And good luck getting your tax info together.