$202,000 Jeter Card

[ValKehl]

David, thanks for the clarification.

[Dpeck100]

Originally Posted by ValKehl

David, thanks for the clarification.

Sure thing.

The top estate tax bracket used to be in the 55% range and then with the exemption you would net about 50%. Obviously many have used fancy estate planning techniques and altered this some but the point is the same. If you are mega rich a huge chunk is being confiscated when you die. If Bieber died tomorrow his estate would owe 101.44 million using the 265 estimate. Might as well blow some of the dough on whatever you want. On items like this the higher the price goes the more exciting it becomes so it is a win win. If it goes up in value great. If it goes down no big deal.

[Throttlesteer]

A bit off-topic, but I dont understand people paying hundreds of dollars for no-name mirror blues and golds in this set. You can get PSA 10 mirror golds of top NHL players for $100-200. Yes, smaller market but you could buy every Gretzky mirror gold in PSA 10 and have most of your money left over from that Jeter. Oh well, its not my money.

[Bored5000]

Originally Posted by Throttlesteer

A bit off-topic, but I dont understand people paying hundreds of dollars for no-name mirror blues and golds in this set. You can get PSA 10 mirror golds of top NHL players for $100-200. Yes, smaller market but you could buy every Gretzky mirror gold in PSA 10 and have most of your money left over from that Jeter. Oh well, its not my money.

Don't take this as me being snarky, but I don't get how the cost of a Wayne Gretzky card would help out someone who is a Jeter/Yankees collector.

Someone dropping $200K on a single card is probably not looking at how far they can stretch $100-200.

[steve B]

Originally Posted by Dpeck100

Sure thing.

The top estate tax bracket used to be in the 55% range and then with the exemption you would net about 50%. Obviously many have used fancy estate planning techniques and altered this some but the point is the same. If you are mega rich a huge chunk is being confiscated when you die. If Bieber died tomorrow his estate would owe 101.44 million using the 265 estimate. Might as well blow some of the dough on whatever you want. On items like this the higher the price goes the more exciting it becomes so it is a win win. If it goes up in value great. If it goes down no big deal.

I wonder how it would work out if someone claimed a card sale like this under capital gains.

[Dpeck100]

Originally Posted by steve B

I wonder how it would work out if someone claimed a card sale like this under capital gains.

Capital gains tax on collectibles is 28%

[Exhibitman]

Originally Posted by steve B

I wonder how it would work out if someone claimed a card sale like this under capital gains.

You'd have to run the numbers to see what works best. I believe the capital gains tax for collectibles is 28%. You could set up a card business and file a schedule C, and see whether that works better than using a capital gain when the costs of starting and operating a business are considered. You could also set up an LLC or S corporation, capitalize it with cards, sell the Jeter, and take the section 199A deduction, which deducts the first 20% in pass-through income from the business, then you pay regular income taxes on the rest. There are limits tied to income levels and certain activities, however, so you need a good tax planner to work you through it all.

But don't take my word for it...I don't give tax advice and when I do I usually get it wrong. The only advice I will stand by is "pay the taxes"; if I have a tremendous windfall because I busted a pack of cards 20 years ago, I am going to enjoy it and not get all bunged up about the taxes.