Quote:
Originally Posted by bnorth
Thanks guys. I don't swim in the deep end of the pool so I didn't know. Maybe i should have read one of Bob's epic posts on taxes. 
I do feel it is important to know about selling a card that is expensive to the buyer even if they don't plan on selling. |
Ben, just to be clear, the other post you quote is not entirely accurate. While there is no state or federal income tax consequence on a purchase, Most people must pay state sales tax when they buy a card, which should be added to cost/basis for determining gain or loss.
I live in Maryland and the sales tax is 6%. I factor this into every bid I place. On a $30k card, the sales tax is $1800!! Ouch
Steve is 100% correct that Federal tax liability may accrue when you sell a card, but only if you sell for a gain.