How do you navigate the tax burden of selling expensive cards?

[BobC]

Originally Posted by Collectorsince62

I hope to remain in the situation where I never need to liquidate my collection. I would love to pass it on to my children who can do whatever they want with it. My two sons know what I have and also know the options available for selling. I believe their cost basis is the market value at the time of inheritance regardless of my cost basis. Someone please confirm. If they sell at that basis, what is their tax liability? Thanks.

You're correct, under current inheritance tax law, your sons would get a stepped-up tax basis equal to the FMV of each card/item you leave them on the day you pass. Always keep in mind that this can change in the future.

As for what their tax liability would be, that depends on what they may sell items from your collection for, and what else they are reporting on their respective tax returns in the year(s) of such sales.