Selling a card you inherited - Income tax

[Fred]

Originally Posted by Rhotchkiss

No tax. At death, the basis becomes fair market value. If you then sell it for fair market value, no tax. But make sure you can prove that at death it was worth what you sold it for

So, this is kind of like stock. The price of the stock is set to the value when the person dies and the person that inherits it has to claim gains based on that amount. Is that right?

[swarmee]

Originally Posted by Fred

So, this is kind of like stock. The price of the stock is set to the value when the person dies and the person that inherits it has to claim gains based on that amount. Is that right?

This is correct. For any additional details, there are six walls of text above that clarify.

[insidethewrapper]

I'm sure most are sending their collections in to auction houses and no tax reporting is necessary. I really believe that is why there are so many current auctions ( daily ). Easy tax free money.

[Exhibitman]

Originally Posted by insidethewrapper

I'm sure most are sending their collections in to auction houses and no tax reporting is necessary. I really believe that is why there are so many current auctions ( daily ). Easy tax free money.

Not quite accurate. The AHs are not required (yet) to act as narcs and 1099 consignors (eBay is) BUT under existing law, the consignors are required to declare the income they receive from sales. If someone is receiving big consignment checks and declares nothing, and if that person is subsequently audited and the facts emerge, not only will there be a hefty penalty, there is a real chance of a criminal referral for tax evasion, and that is one of the most successful Federal prosecution categories. A person indicted for tax fraud is basically toast. The IRS reported a 91.2% conviction rate in 2019. Tax evasion isn't worth the risk.

[Hirbonzig]

Originally Posted by Exhibitman

Not quite accurate. The AHs are not required (yet) to act as narcs and 1099 consignors (eBay is) BUT under existing law, the consignors are required to declare the income they receive from sales. If someone is receiving big consignment checks and declares nothing, and if that person is subsequently audited and the facts emerge, not only will there be a hefty penalty, there is a real chance of a criminal referral for tax evasion, and that is one of the most successful Federal prosecution categories. A person indicted for tax fraud is basically toast. The IRS reported a 91.2% conviction rate in 2019. Tax evasion isn't worth the risk.

The IRS is about to hire up to 87,000 new agents, they’ll be poking their noses into a tax return near you. No time for playing games.

[Peter_Spaeth]

Originally Posted by Exhibitman

Not quite accurate. The AHs are not required (yet) to act as narcs and 1099 consignors (eBay is) BUT under existing law, the consignors are required to declare the income they receive from sales. If someone is receiving big consignment checks and declares nothing, and if that person is subsequently audited and the facts emerge, not only will there be a hefty penalty, there is a real chance of a criminal referral for tax evasion, and that is one of the most successful Federal prosecution categories. A person indicted for tax fraud is basically toast. The IRS reported a 91.2% conviction rate in 2019. Tax evasion isn't worth the risk.

Agree completely, the issue is your income, not what happens to get reported independently.