Taxes and Auction Site Question

lug-nut · #1 02-14-2021, 04:38 PM

Quote:

Originally Posted by joshuanip

Back to topic, make sure you guys document your cards in your wills and include in your estates, that way your decendants would get the step up and not get hit with the appreciation.

Works for your wives too. If I pass, my wife gets to realize the appreciation tax free. I�d be sad, but hey I�m dead so what...

Caveat, each state has different estate tax exemptions and Biden is eyeing the 22m tax exemption that expires in 2025. So not exactly set and forget, you may want to keep up with changes to plan accordingly.

How would the IRS know what cards I have in my wall safe or safe deposit box and wouldn't a living trust cover this issue?

joshuanip · #2 02-14-2021, 04:40 PM

Quote:

Originally Posted by lug-nut

How would the IRS know what cards I have in my wall safe or safe deposit box and wouldn't a living trust cover this issue?

It would be appraised and included as part of your estate return.

BRoberts · #3 02-14-2021, 04:51 PM

Quote:

Originally Posted by lug-nut

How would the IRS know what cards I have in my wall safe or safe deposit box and wouldn't a living trust cover this issue?

Do yourself a favor and stop asking for tax/how-to-commit-fraud advice on a message board. Dig into your wallet and pay a tax professional for an hour consultation. Good Lord.

birdman42 · #4 02-14-2021, 05:25 PM

Well, here's the thing. Our federal tax system is based on voluntary compliance. That means you're expected to do the right thing without any prodding.

As a professional tax guy, I see the occasional person who's trying to evade paying their proper taxes. I send those people packing, for two reasons. First, I don't need the aggravation of dealing with the tax man when the client gets caught (and eventually they will get caught). Second, I don't need people like that in my life--abetting their actions is just bad juju. (Tax avoidance is fine--taking advantage of features of the tax code to reduce taxes.)

I'm with Ryan. I'm not going to answer any of your direct questions ("How much?" "How long?" etc. etc.) Doing that just leads down the path of "how about if I do it this way?" Do it right because it's the right thing to do.

Bill

joshuanip · #5 02-14-2021, 05:30 PM

Quote:

Originally Posted by birdman42

Well, here's the thing. Our federal tax system is based on voluntary compliance. That means you're expected to do the right thing without any prodding.

As a professional tax guy, I see the occasional person who's trying to evade paying their proper taxes. I send those people packing, for two reasons. First, I don't need the aggravation of dealing with the tax man when the client gets caught (and eventually they will get caught). Second, I don't need people like that in my life--abetting their actions is just bad juju. (Tax avoidance is fine--taking advantage of features of the tax code to reduce taxes.)

I'm with Ryan. I'm not going to answer any of your direct questions ("How much?" "How long?" etc. etc.) Doing that just leads down the path of "how about if I do it this way?" Do it right because it's the right thing to do.

Bill

I think there is consensus on this board over doing the right thing and basic ethics, but as a more important matter (to the rest of this board) is education, not advice, that we can do a little planning to legally minimize the bite from IRS. Again for you black and white homies, not advice, but just saying there is a path to look into.

birdman42 · #6 02-14-2021, 05:54 PM

Quote:

Originally Posted by joshuanip

...a little planning to legally minimize the bite from IRS.

Exactly. Tax planning to avoid paying unnecessary amounts is more than fine, it's responsible. But when the amount is necessary, you just have to do it.

jayshum · #7 02-14-2021, 06:34 PM

Just curious, but when you report earnings from a sale, should you use the actual price you paid for the card as the cost basis or the price you told your wife you paid?

Asking for a friend.

Rhotchkiss · #8 02-14-2021, 05:10 PM

Quote:

Originally Posted by lug-nut

How would the IRS know what cards I have in my wall safe or safe deposit box and wouldn't a living trust cover this issue?

I bet $10 you are going to tell us! Man, you are one dumb SOB

Ryan Hotchkiss

lug-nut · #9 02-14-2021, 07:05 PM

Quote:

Originally Posted by Rhotchkiss

I bet $10 you are going to tell us! Man, you are one dumb SOB

Ryan Hotchkiss

really?

conor912 · #10 02-14-2021, 11:41 PM

My friend has a card he got in a pack as a kid, and it now would sell for $20k, so his cost basis is zero. If he sends it to auction, what is the tax implication there? Does the AH send him a 1099? Does he just self-report? He’s willing to pay the taxes on it, he just doesn’t know how it goes down.

swarmee · #11 02-15-2021, 03:59 AM

Quote:

Originally Posted by conor912

My friend has a card he got in a pack as a kid, and it now would sell for $20k, so his cost basis is zero. If he sends it to auction, what is the tax implication there? Does the AH send him a 1099? Does he just self-report? He�s willing to pay the taxes on it, he just doesn�t know how it goes down.

If 1099, then 1099. If no 1099, then self-report.

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