Ryan has some good points to consider. I'm no CPA so please consult one before you do anything, I do however qualify people based on their tax returns everyday. If you form an LLC you are telling the government I am in the business of buying and selling cards, it could be anything but lets stick to cards. As a business you are allowed to write off expenses against profits. Basic schedule C stuff on your 1040's. To be clear you are buying and selling cards as an investment in that scenario. Also be aware as a business the IRS requires you make a profit at some point, usually 2 of the first 5 years.
In the collectibles as an asset category you should consult an estate planning attorney. Think of a painting that you bought and hung on the wall for 30 years, that would not be an investment. Its value may go up, it may go down. As an asset of your estate the cost basis on things like real estate and other assets increase to current market value at time of death when your heirs inherit the assets.
Again, this stuff is complicated and can vary from state to state. Consult a professional before you do anything.
Last edited by Casey2296; 11-23-2020 at 09:49 PM.
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