[Peter_Spaeth]

Originally Posted by Smarti5051

I realize I should read the other thread, but I am not sure how "buy more" actually helps reduce tax burden. My understanding is that you pay tax on the difference between net sale price and your basis in a card. So, if you have 5 cards that you bought for $10,000 and sell them this year for $210,000, you would have a net gain of $200,000, which is subject to income tax. If, during this tax year, you bought an additional card for $200,000 (let's say a Ruth Goudey), but you continue to hold it, you can't reduce your gain with the new inventory purchase. I need BobB to check in on this one, but that is my understanding. Otherwise, a company could perpetually increase their assets by buying new cards to offset gains on old ones without ever paying taxes (which is generally frowned upon by the tax man).

I would love to be wrong on this one, so please let me know if this is inaccurate.

You can't roll over your gain into the purchase of another card and thereby avoid being taxed on it. The only thing I know of you could do to reduce your taxes would be to sell other assets at a loss and offset the loss against the gain.