Cashing in a Starting All Over

[Rhotchkiss]

Pete, I am sorry, but I believe gains on all collectibles are taxed at 28% regardless of income level or tax bracket. Thus, you will receive no tax break from being retired and/or having no other material income source

[ullmandds]

Originally Posted by Rhotchkiss

Pete, I am sorry, but I believe gains on all collectibles are taxed at 28% regardless of income level or tax bracket. Thus, you will receive no tax break from being retired and/or having no other material income source

bugga!!!!!

[tkd]

Pete,
Still not a bad idea. I've looked at it that way too.

[Exhibitman]

Originally Posted by Rhotchkiss

Pete, I am sorry, but I believe gains on all collectibles are taxed at 28% regardless of income level or tax bracket. Thus, you will receive no tax break from being retired and/or having no other material income source

That's if you sell them as capital gains investment property. If you actually start a business you can either use a Schedule C or form a pass-through entity and file accordingly as ordinary income with expenses deducted. If the section 199 deduction for pass-through entities instituted in 2017 is still around it may make sense to form an S corp or LLC to take advantage of that exclusion of 20% of the income from taxation. That's what I would do if I sell highly appreciated cards in sufficient quantity. You just have to run the numbers a few ways to analyze it.

Way too far into the weeds for a baseball card chat board, I know.