Investment potential- which cards will do best?

[FrankWakefield]

Thank you, William and Oklahawg...


If you buy a slabbed card for $1000, and sell it for $3000, you have $2000 of ordinary income.

If you buy $1000 of mutual funds and sell that for $2500, you have $1500 that is subject to capital gains tax.

There's a right smart difference. Collect collectables; invest in investments.

[Delray Vintage]

Long term gains on cards are not taxed at ordinary income, they have a max of 28%. While not at the favorable 15% at least not at highest rate.

[FrankWakefield]

Bob, you get an IRS agent to agree with that, then email me the agent's name, please Sir.

[joeadcock]

E107's would be on my list.

[sox1903wschamp]

Originally Posted by joeadcock

E107's would be on my list.

Yeah, me too!

[Delray Vintage]

The policy reasons for taxing collectibles at 28% versus 15% for stocks or other business investments is that the latter are seen as investments in growing the economy. The policy makers in Congress do not believe art, baseball cards, coins deserve the best rate because they do not grow or multiply economic activity.

[Tsaiko]

Originally Posted by FrankWakefield

If you buy a slabbed card for $1000, and sell it for $3000, you have $2000 of ordinary income.

It's my understanding that the IRS looks at the $2000 as capital gains, just like a stock that appreciated that much. I'd love to learn why that isn't the case, please educate me.
Thanks,

[William Todd]

Cards are treated as collectibles...28%...End of story...