Has Anyone Ever Acquired an Entire Inventory from a Baseball Card Store/Stand?

[sbfinley]

There are several experienced collectors that I converse with occasionally who have each, at one point or another, brought up a very interesting point.

They believe that mass-produced 1980's sets will see a revival in about 10-15 years when that generation reaches an age where that feeling of wanting to reconnect with their youth appears. It is a valid point and I can very well see that occurring. Now, they don't believe that a Canseco Donruss RC will hit $75 or a 89 UD Griffey will bring $125 or whatever it used to demand. But instead, sets like 87 Topps that can be had easily for $10 bucks today could command $30-40 in ten years. In hindsight a 200% gain over 10 years wouldn't be a bad return.

Individual stars probably wouldn't witness such an increase but key cards like the Mattingly RC and UD Griffey (cards that the generation coveted but maybe never attained) would see a spiked increase as would complete sets, graded singles, and unopened wax. In my opinion it is a valid point, with the only drawback being the large amount of cards you would have to hoard and store to make the venture worth your while.

And also there is the chance we are just hopelessly optimistic, we drink to much, and such a shift in 80's values will never occur.

[canjond]

I'm certainly not a tax expert (I pay my CPA to be), but couldn't there be some value in a cheap purchase and donation for write-off purposes? I.e., collection has FMV of $10k, although difficult and time consuming to move. The collection is purchased for $100 and then donated to a series of thift store, charity auctions, fund raisers, etc?

[egbeachley]

Originally Posted by canjond

I'm certainly not a tax expert (I pay my CPA to be), but couldn't there be some value in a cheap purchase and donation for write-off purposes? I.e., collection has FMV of $10k, although difficult and time consuming to move. The collection is purchased for $100 and then donated to a series of thift store, charity auctions, fund raisers, etc?

If the collection is purchased for $100, then it has a FMV of $100. You just spent $100 to save $30 on your taxes.

[canjond]

Originally Posted by egbeachley

If the collection is purchased for $100, then it has a FMV of $100. You just spent $100 to save $30 on your taxes.

Again, I may be wrong but I didn't think determining FMV for taxing purposes is so cut and dry. For example, if I walk into a flea market and purchase a 52 Topps Mantle for 25 cents, and subsequently decide to donate it to charity, am I only able to write 25 cents off my taxes, or am I able to write off the FMV (a price someone is willing to pay for the item) - let's say $10k? In other words, I didn't think FMV had to take into consideration a "bargain" purchase price.

Oh well either way.

[BillyCoxDodgers3B]

Originally Posted by canjond

Again, I may be wrong but I didn't think determining FMV for taxing purposes is so cut and dry. For example, if I walk into a flea market and purchase a 52 Topps Mantle for 25 cents, and subsequently decide to donate it to charity, am I only able to write 25 cents off my taxes, or am I able to write off the FMV (a price someone is willing to pay for the item) - let's say $10k? In other words, I didn't think FMV had to take into consideration a "bargain" purchase price.

Oh well either way.

I'm fairly certain you are able to write off such an item at current FMV. I have donated a car to charity in the past. The charity employs an impartial assessor to ascertain FMV and then mails you a tax-deductible receipt for the FMV amount according to the assessor's findings. Perhaps the answer lies within finding the opinion of a recognized/approved appraiser.

[baseballart]

Originally Posted by JBirkholm

I'm fairly certain you are able to write off such an item at current FMV. I have donated a car to charity in the past. The charity employs an impartial assessor to ascertain FMV and then mails you a tax-deductible receipt for the FMV amount according to the assessor's findings. Perhaps the answer lies within finding the opinion of a recognized/approved appraiser.

Jodi

In Canada, there are a number of rules that deal with donations, including a three year rule look-back rule restricting donations to the purchaser's cost, rather than fair market value. These amendments were put into place to prevent what the fisc considered inappropriate donation schemes whereby a taxpayer profited through a donation after taking into account the tax credit. Donations aren't always a simple thing when the donation isn't cash.

Max

[crazysc]

Originally Posted by JBirkholm

I'm fairly certain you are able to write off such an item at current FMV. I have donated a car to charity in the past. The charity employs an impartial assessor to ascertain FMV and then mails you a tax-deductible receipt for the FMV amount according to the assessor's findings. Perhaps the answer lies within finding the opinion of a recognized/approved appraiser.

Legally, you're not supposed to make a "profit" off of charitable donations. Realistically, I don't think you're going to get a huge argument if you're not being a pig about it.

Being in the auto business, I occasionally donate or facilitate donations of worn out cars. Getting a $500 tax donation for a car that sells for $200-300 when it's auctioned is not going to raise eyebrows - and most people have basis in the vehicle anyhow. Buying an old junker for $500 to make a donation and charge off $5000 - that'll get you in some trouble. No different than cards I'm sure.

[egbeachley]

Originally Posted by canjond

Again, I may be wrong but I didn't think determining FMV for taxing purposes is so cut and dry. For example, if I walk into a flea market and purchase a 52 Topps Mantle for 25 cents, and subsequently decide to donate it to charity, am I only able to write 25 cents off my taxes, or am I able to write off the FMV (a price someone is willing to pay for the item) - let's say $10k? In other words, I didn't think FMV had to take into consideration a "bargain" purchase price.

That's easy. You get to deduct the full $10K. Right after you report the $10K income.

[Jim VB]

Originally Posted by egbeachley

That's easy. You get to deduct the full $10K. Right after you report the $10K income.

Really? Is the law different for collectibles than other assets? I know you can donate appreciated stocks without taking the income hit. I'm pretty sure you can do it with real estate. Would this be treated differently?

[egbeachley]

Originally Posted by Jim VB

Really? Is the law different for collectibles than other assets? I know you can donate appreciated stocks without taking the income hit. I'm pretty sure you can do it with real estate. Would this be treated differently?

Same thing really. The income earned and deduction made cancel each other out.

[uffda51]

A couple of friends of mine owned a card store in the early 80s. They had a chance to buy 500,000 1980's Topps commons for $500. The figured they couldn't lose.

They did.

[baseballart]

Originally Posted by canjond

I'm certainly not a tax expert (I pay my CPA to be), but couldn't there be some value in a cheap purchase and donation for write-off purposes? I.e., collection has FMV of $10k, although difficult and time consuming to move. The collection is purchased for $100 and then donated to a series of thift store, charity auctions, fund raisers, etc?

Jon

I can't say what the IRS would do with this, but in Canada, there have been numerous packaged donations that promoters have sold in this manner. They have been universally attacked and attacked successfully by the Canada Revenue Agency.

Max

[insidethewrapper]

You can usually sell your commons in the .002 range ( 1/5 cent each). I don't know the current price. I sold 1 million commons for $ 2000 and kept all the stars and rookies etc. Companies repackage these and sell in department stores. Look thru SCD ads etc. for common buyers and then determine if you can make a profit. Sell 700 cards from a set for $ 1.40 and save the stars. You would have to buy very cheap to make a profit.

[Orioles1954]

We can end our search for alternative energy sources by burning the millions of 1980s-1990s comons out there.

[Rich Klein]

Originally Posted by sbfinley

There are several experienced collectors that I converse with occasionally who have each, at one point or another, brought up a very interesting point.

They believe that mass-produced 1980's sets will see a revival in about 10-15 years when that generation reaches an age where that feeling of wanting to reconnect with their youth appears. It is a valid point and I can very well see that occurring. Now, they don't believe that a Canseco Donruss RC will hit $75 or a 89 UD Griffey will bring $125 or whatever it used to demand. But instead, sets like 87 Topps that can be had easily for $10 bucks today could command $30-40 in ten years. In hindsight a 200% gain over 10 years wouldn't be a bad return.

Individual stars probably wouldn't witness such an increase but key cards like the Mattingly RC and UD Griffey (cards that the generation coveted but maybe never attained) would see a spiked increase as would complete sets, graded singles, and unopened wax. In my opinion it is a valid point, with the only drawback being the large amount of cards you would have to hoard and store to make the venture worth your while.

And also there is the chance we are just hopelessly optimistic, we drink to much, and such a shift in 80's values will never occur.

Is that usually we apply a "20-year" rule to the return of interest in collectibles. We are sailing past that 20 year period of the 1980's and thus we should have already seen the interest. I think this may actually just take another 20 years just to get to a possible point. And then the 40 year rule which is, we start getting rid of stuff, begins. I think this stuff, will be like beanie babies, which is, forever of an era that we will always see the low prices.

Rich

[baseballfan]

the store i used to go to. well the owner passed away and helped the widow liquidate the store. there was a lot of 80-90 stuff. opened for 2 days and sold some stuff cheap. i then bought the rest for $1500, it had some older cards in Vg/ex shape and 6 griffeys (89 UD) when they were actually bringing money. included football, basketball, some hockey, 80's wax. i still have some of it. sold some at local flea market just to get rid of it, 87 boxes $/box, 89 $4-5/box. i have boxes and boxes of commons i would love to move.

i think you would have a hard time (long time) moving some of it, it tough to drop it on ebay because of the shipping costs. if it was stuff that moved the guy would have sold it already.

you could have some fun doing it, if your interested in that. but you have to get it dirt cheap and know it will take you some time.

good luck and let us know what you decide.

[Exhibitman]

Supply is massive, demand is nil, and everything is in top condition. Add into the mix that the players of the era who are HOF caliber are mostly under the taint of steroids and I think you would be better off shredding the cards and selling them as mulch than as cards. I'd spend the same money on a few nice vintage cards.

[ChiefBenderForever]

After struggling with what to do with about 500 thousand cards mostly from 1978-92, I went through them all,kept about 1000 and sent the rest to recycling, if everyone else did the same they might be worth something someday. I think the only stuff that will be popular is unopened material so adults can remember the joy opening wax brought them and then throw 94% in the trash again.

[vintagechris]

Originally Posted by sbfinley

There are several experienced collectors that I converse with occasionally who have each, at one point or another, brought up a very interesting point.

They believe that mass-produced 1980's sets will see a revival in about 10-15 years when that generation reaches an age where that feeling of wanting to reconnect with their youth appears. It is a valid point and I can very well see that occurring. Now, they don't believe that a Canseco Donruss RC will hit $75 or a 89 UD Griffey will bring $125 or whatever it used to demand. But instead, sets like 87 Topps that can be had easily for $10 bucks today could command $30-40 in ten years. In hindsight a 200% gain over 10 years wouldn't be a bad return.

Individual stars probably wouldn't witness such an increase but key cards like the Mattingly RC and UD Griffey (cards that the generation coveted but maybe never attained) would see a spiked increase as would complete sets, graded singles, and unopened wax. In my opinion it is a valid point, with the only drawback being the large amount of cards you would have to hoard and store to make the venture worth your while.

And also there is the chance we are just hopelessly optimistic, we drink to much, and such a shift in 80's values will never occur.

I personally don't think this will happen for the following reasons, First, I think a lot of people who collected in the 80's still have them because they were unable to get rid of them. Secondly most people who bought cards in the 80's and 90's didn't do it for collecting purposes but they thought they were going to retire off of them.

People who collected in the 50's thru 70's had more of a connection to the the cards IMO and collected purely for the enjoyment.

Also, when you talk about these cards being mass produced, they were REALLY mass produced and I just don't see there being enough of an increase in demand ever to catch up with the supply out there.

[teetwoohsix]

I know Chris said in the original post that the cards were mostly from the 80's to present,,,,,,,and I know the cards were over produced in the 80's and 90's-but how much of this lot is from 2000-present?

I wouldn't think there would be much worthwhile in the 80's to 90's cards, but I bought some boxes of cards from a guy who was going out of business and the ones I bought were just about all 98' to around 07', and although I do not sell cards, there are quite a few that would probably sell without a problem (Chrome refractors,serial#'s,etc.)..........

I'd think if at least 50% or more were from 2000 to now it may be worth looking at, but if it's all 80's and 90's I'd pass.

Clayton