PayPal Friends and Family etc....

[Michael B]

Originally Posted by BobC

Exactly what are you saying, that I have personally said things that are dangerous? Or are you making a general statement that I should realize that a lot of people on here make comments and statements about things they don't really know about all the time, and are probably never going to stop?

Comments about who's best, what values we think something has, or impressions and opinions and the like are not dangerous in that they are discussions and debate as to how people may think or feel about something. I always try to let it be known if something I'm saying is an opinion, or that I've heard or gotten it from rumors or other sources I've come across or seen, and therefore can't always guarantee are 100% true or accurate.

However, when someone asks a specific question, for which there is a specific, correct, legal answer, it seems a lot different than responding to questions which are more general and do not have specific answers, at least to me. See how I did that, so you know that is my thinking and opinion, and that what I'm saying is not necessarily a hard and irrefutable fact.

Oftentimes people may make responses on here that are in reality just their opinions, but the manner in which they state or make them doesn't always convey that, and appear to be made as absolutely true and correct statements. And when they aren't necessarily true and accurate, someone else reading them may think they're supposed to be true and accurate based on the way, manner, or in the context the author presented them, and as result make a mistake or do something they shouldn't.

I know my posting and asking people to maybe not be answering tax questions that they really don't know a lot about is probably a stupid waste of time on my part, but if as a result at least one person going forwards adds things like "I think" or "IMHO" to statements they make, it would maybe help others to know that isn't necessarily a definitive and correct answer.

Bob,

The comment was not directed at you. My apologies if you misinterpreted my comment. You are absolutely correct in what you have said. I was commenting on the others that you have taken to task. We have been in agreement in several other threads that broach similar subjects. Tax law is your expertise and is not something I would comment on. My knowledge is property law.

[swarmee]

Thanks for the clarification.

[Leon]

Originally Posted by swarmee

Thanks for the clarification.

+1. I had known about the FF not counting but some of the other stuff was new to me. (and I changed the title, you're welcome)
.

[BobC]

Originally Posted by Leon

+1. I had known about the FF not counting but some of the other stuff was new to me. (and I changed the title, you're welcome)
.

Okay Leon, now I'm curious, so what did you learn?

I'll add a little bit of estate planning for you in regards to gifting as well. If you don't ever plan to sell all of your collection, you'll end up leaving it to your family in most likely one of two ways, either as a gift while still alive, or inheritance after you pass.

The advantage to gifting it to someone is that it is then out of your future estate, and any future appreciation belongs to whomever you gave it to. However, on the downside, when you gift your collection to someone while you're still kicking, your original tax basis gets carried over to the person you gifted the collection to. So if you had a card in your collection that you pulled from a pack say 50-60 years ago, a portion of that original pack cost is the basis used by the person you gifted the card to that they use to determine how much they made/lost should they subsequently sell the card. So as a result, it would potentially make everyone's life easier if when gifting your collection to someone, you also give them your tax basis so they have it going forward. When you then go to determine if you have to report the gift for gift tax purposes, you don't use your basis though. You have to use the current FMV of the collection to determine if you exceeded the annual gift exemption amount, and if so, then file a gift tax return. The FMV is also used to determine if you then currently owe any gift tax on the gift. (And if you do currently end up owing any gift tax, that gets added onto the tax basis of the collection you just gifted to someone.)

If you wait to leave your collection to your family as part of your estate, you now use the FMV of the collection as of your date of death to figure if there is any inheritance tax due. But for whoever inherited the collection, they get a stepped-up basis in the collection also equal to its FMV at your DOD, not your carryover basis they would have gotten had you gifted it while still alive instead. So theoretically, if whoever inherits your collection goes to sell it right away, the stepped- up basis they inherited from you should be about what it sells for, so there should be little or no gain to pay tax on. However, if you gifted it, the person selling uses your old tax basis, and not the FMV at the time of your gift, to determine how much they made on the subsequent sale, and are more likely to end up with significant income, and as a result, tax due.

Now this is basically how it works under current tax law, but can always change, so one needs to keep that in mind. And you also have to consider the lifetime estate and gift exemption amount in your planning as well. As I previously mentioned in an earlier post, that lifetime exemption amount is already scheduled to get cut in half in 2026, when a lot of other things passed as part of Trump's tax law changes from back in 2018 are also going to go away.

So there you go, some simple Estate/Gift Planning 101 for everyone. Very, very basic stuff though. So would still advise to seek more help regarding everyone's own particular unique situation and circumstances.

[BobC]

Originally Posted by swarmee

Thanks for the clarification.

John,

Once again, not picking on you at all. But could see you may have heard or been misinformed about some things, and just wanted to set the record straight for everyone's benefit.

Hang in there, hope this is helpful to you and others.

[benge610]

A thank you to all contributors on this thread. I am a small fish who wants to continue to fly, "under the radar"; cuz there are a few flying fish left in this hobby.
Ben

"I love baseball history backstory; especially when it involves cards."

[BobC]

Originally Posted by Michael B

Bob,

The comment was not directed at you. My apologies if you misinterpreted my comment. You are absolutely correct in what you have said. I was commenting on the others that you have taken to task. We have been in agreement in several other threads that broach similar subjects. Tax law is your expertise and is not something I would comment on. My knowledge is property law.

Thanks Michael,

I didn't think you were talking about or directing that at me, but wanted to apologize up front in case you were. LOL

I figure pretty much everybody on here is going to eventually have some type of tax impact from their collections. So I figure if I can assist and get everyone straight on how it is supposed to work and what they are supposed to do, they are better able to make a decision for themselves on how they want to handle things for tax purposes. I am not trying to tell people what to do, just give them better info to make their own decisions. Trust me, income and other taxes are a pain in the you-know-what. I do not know that much in reality, but do know when some research is needed, and usually where to go.

Property law is no easy area at all. Worked for a real estate developer/management company for 15 years and saw more leases and property deals than you can imagine. I tip my hat to you for your expertise.