Quote:
Originally Posted by Exhibitman
For genuinely rare items, there is no need to compromise a price. My general reaction when someone wants a rare item is to set a price and if they haggle, tell them to go find one somewhere else. Nearly always results in capitulation.
But I digress from the OP.
One more reason to take losses is the same one you use in balancing a stock portfolio: offsetting taxable profits.
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You have to be careful though. If you are operating as a dealer in business, then you can offset the losses. If you are a collector/hobbyist though, and not in a formal business as a dealer, you CANNOT offset any losses from a hobby activity against any hobby gains.
Technically, if you are strictly an investor in cards, you could then offset card losses against card gains, but you'd have to convince the IRS that cards they consider as hobby collectibles can be differentiated and shown/proven to be investment assets held by you, like stocks and bonds. If you claimed the card losses as an investor and went to deduct them on your tax return, and the IRS came back at you, you may not be able to get them to agree with your thinking and reasoning that they are actual investments. I've said this before, an investor would more likely keep their cards in a safe deposit box or with one of these Vault operators, a collector/hobbyist would more likely keep and display them on the walls/shelves in their man cave/office.