[ValKehl]

Originally Posted by GeoPoto

The best alternative to a lack of receipts is a "diary" kept contemporaneously. Since you don't have that, you make a plausible guestimate of what you paid (including any related expenses). As long as you don't guess $1 paid for an item you just sold for $1,000, your estimates, assuming they are plausible, will tend to be accepted. The IRS can hardly "prove", or even suggest, you paid $0.

George, I think the IRS would be super happy if you were to "guess $1 paid for an item you just sold for $1,000" because this would maximize their tax revenue.

I have sold many zero cost baseball cards in the last few years, as I have been selling off the cards I got out of 5-cent wax packs in the 1950's when I was a kid. And yes, the taxes I have paid (22% federal and 5.75% Virginia) on these collectibles gains are painful. But, then I realize how fortunate I am that Mom didn't toss my cards out after I left home (she called before tossing them out several years later and asked if I still wanted them).