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

[mrreality68]

Taxes sucks paying them

But many people would be happy to have them problem of making the money to have to deal with the tax question.

[sb1]

Unfortunately a "loss" cannot be used on "collectibles" for tax purposes....

The moral of the story is that you probably need to be identified as a business OR as an investor(which is somewhat of a new area and largely untested water). From reading the info I posted below, identifying oneself as an investor is fairly straightforward and largely subjective.

[sb1]

Here's a very good page for reading

https://www.thetaxadviser.com/issues...lectibles.html

[Leon]

Originally Posted by sb1

Unfortunately a "loss" cannot be used on "collectibles" for tax purposes....

I lost 5k on a card approximatly 15 yrs ago. I reported the loss and got audited by the IRS. I showed my cost basis and sales price. It flew past the audit with no problem. I honestly missed a 1099 that year and had to pay around a $100 penalty plus the tax.
.

[sb1]

The loss is probably is taken and passes far more than one would think. I imagine it has to do how it was listed on the return. And. as vague as the codes are many agents probably don't know the correct answer as well.

[Touch'EmAll]

Business vs. Collector vs. Investor - big question. I go with "investor" and Schedule D on my tax return.

By the nature of my acquisitions I feel I can prove investor. I do not collect sets with all the commons, I only collect the most biggest of names and relatively highly graded at that. I do not have an IRA and money for retirement goes into higher end cards, and for the most part stays there. My intent is investment for profit - capital gains.

Keep track of cost basis, and sales price. Declare all sales transactions. Should be good to go.

[ullmandds]

calling ones self an "investor" seems to be the smarter play for tax purposes...what a ruse. enjoy a passion filled hobby to fill the time and enjoy with others and get punished for it! Claim your "collection" is a portfolio for the sole purpose of making money and u are rewarded...cuz this is Merica!

[Exhibitman]

The secret of America is...money, Pete. Everything is money.

https://youtu.be/qHDBDTlrp0o