Cost basis - Warning tax related topic

Stupe the Second Sacker · #1 09-02-2022, 11:36 AM

Quote:

Originally Posted by raulus

In terms of proving what came in the lot, you probably have a receipt from the auction or purchase. If you were extra paranoid about the details not being spelled out, you could always sit down and document it when you acquired the lot.

In theory, you should be using relative current market values to allocate the purchase price between the items acquired.

Is it a nightmare for a casual seller? I'm guessing that a casual seller doesn't sell a lot, or at least not in high dollar amounts. And if I had to guess, they probably don't worry about attempting to report it on their taxes. Not that I would ever encourage such scofflaw behavior!

For items purchased at an auction house or ebay, yes there are receipts. But shows? Responding to ads in the paper? No receipts.

I don't follow the "relative current market values" comment. If I bought a Pete Rose card at a show 15 years ago and don't remember what I paid...what is the cost basis? Not talking about a lot here...individual cards.

I think there are plenty of casual sellers that sell over $600 in a year. That's not difficult to do, especially these days.

raulus · #2 09-02-2022, 11:41 AM

Quote:

Originally Posted by Stupe the Second Sacker

For items purchased at an auction house or ebay, yes there are receipts. But shows? Responding to ads in the paper? No receipts.

I don't follow the "relative current market values" comment. If I bought a Pete Rose card at a show 15 years ago and don't remember what I paid...what is the cost basis? Not talking about a lot here...individual cards.

I think there are plenty of casual sellers that sell over $600 in a year. That's not difficult to do, especially these days.

Allow me to update my comment about "current market value". I was referring to current market value at the date of acquisition, not as of today's date. If I purchased 100 cards in a large lot 15 years ago, then I would use the relative market values at the date of acquisition to allocate the cost between those 100 cards.

If you can't remember what you paid for a card from 15 years ago, then it sounds like your basis is probably zero. I would be tempted to dig deep into my memory to come up with a ballpark, although doing so could be dangerous.

In terms of getting over $600 per year in sales, you're right that the new rules require reporting once you hit that level. However, I wouldn't be surprised if those rules get modified. The reporting burden seems like it could be significant, and I expect that there will be an outcry to raise that limit.

insidethewrapper · #3 09-02-2022, 01:35 PM

I have a set of baseball cards from 1962 ( 62 Topps) which was given to me as a birthday present in 1962. If I sell now , is my basis $ 0 ??? I never paid anything for them and they probably cost less than $20 back then.

raulus · #4 09-02-2022, 02:29 PM

Quote:

Originally Posted by insidethewrapper

I have a set of baseball cards from 1962 ( 62 Topps) which was given to me as a birthday present in 1962. If I sell now , is my basis $ 0 ??? I never paid anything for them and they probably cost less than $20 back then.

Gifts use carryover basis.

So whoever gave them to you probably had purchased them once upon a time. Their basis then transfers to you when they give you the gift.

Therefore, you're probably right that the basis is probably very low, because it's hard to imagine that the person who gave them to you spent very much on the items to begin with.

ALR-bishop · #5 09-02-2022, 04:50 PM

I can almost hear BobC approaching like a big T Rex crashing through the jungle

frankbmd · #6 09-02-2022, 05:16 PM

Quote:

Originally Posted by ALR-bishop

I can almost hear BobC approaching like a big T Rex crashing through the jungle

His fingers just got out of the gym, so they should be ready to begin a significant post.

Leon · #7 09-03-2022, 03:32 PM

Quote:

Originally Posted by ALR-bishop

I can almost hear BobC approaching like a big T Rex crashing through the jungle

I know. Has anyone seen BobC lately?
I use my landed-cost basis for my cost and my net proceeds for my sale. It's not always a positive

And if I don't know the cost then 0 cost basis...doesn't happen often.
.

Stupe the Second Sacker · #8 09-03-2022, 04:47 PM

Quote:

Originally Posted by Leon

I know. Has anyone seen BobC lately?
I use my landed-cost basis for my cost and my net proceeds for my sale. It's not always a positive

And if I don't know the cost then 0 cost basis...doesn't happen often.
.

You know your cost basis and can prove it? Don't see how that's possible unless you've only bought from auction houses.

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