The trend in Wagner cards

[Peter_Spaeth]

Originally Posted by Kco

1. if you have good record keeping you will pay only on profit which is pocketed.
2. Did you sell other items for a loss at any point to offset any profit gain?
3. If used to trade up or into something bigger you can get around capital gains altogrether if you don't take an outright cash out, depending on how you complete the transaction.

For example if you consign it to an AH, and utilize the final amount it sells for as a credit towards another purchase on that auction, you will not have to pay taxex on the sale.

I thought a collector is not supposed to offset losses.

[Kco]

Originally Posted by Peter_Spaeth

I thought a collector is not supposed to offset losses.

Anyone can offset a loss, so long as you have proper and legitimate record-keeping.

For example, let's say you bought 3 items at $1,000 each. Let's say a year later two of those items are now worth $500 a piece, and the otber is worth $2,000. If you sell all 3, you've now made back your original investment, you haven't gained a single dollar. This is super simplified obviously, and you'd need record keeping and an ability to show what you bought and sold for, but capital gains is done on a total level in any given year.

[Peter_Spaeth]

If the taxpayer was holding the collectible for personal purposes, the loss realized on a sale of the collectible is a nondeductible personal loss.

Also
https://www.barrons.com/articles/the...es-01624303281

But the tax law banned deductible expenses and like-kind exchanges on collectibles. Investors can only deduct losses. Hobbyists have no tax benefits.