Quote:
Originally Posted by Exhibitman
I'm tempted to sell some of my cards too, Peter, but when I factor in the cost of sale and the taxes that temptation fades away. Between 10%-20% of market to the auctioneer, 28% of the profit (and a sale of a highly appreciated asset would be nearly all profit) to the IRS if a capital gain or my marginal Federal tax rate if via a business, and my marginal tax rate to the state, a $50K profit becomes a $25K-$30K profit. Nice, but annoying. Hold until after I retire, and the picture changes. Hold until I die and my kid gets a stepped-up to FMV basis and she can sell it and pay nothing in taxes.
If I want to buy one again, the picture is even worse. I need a 50% drop in value to get back in at no extra cost. How often has that been the case over the last 40 years? Now, i guess I could invest the profit but making up a 50% hit like that is a very ambitious plan.
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Taxes suck no question. But your reasoning leads to a Yogi-like result, does it not? I can't afford to sell that card, it's gone up too much in value.
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My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at
https://www.jamesspaethartwork.com/
He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt.