Inherited Cards

[CardboardCollector]

I inherited some cards a while back (5 years ago) and did not think of it at the time to get an estimate for a cost basis for any future sales. I am thinking of selling some of them and am wondering what sources i could use to get historical sales data. I have reached out to VCP to see if they have this historical data on T206s and Topps Baseball cards from the late 50s to early 80s. I have not gotten any word back yet from them. Are there any other sources that would sales data from 5 years back?

Thanks,
Dean

[PolarBear]

I'm no accountant but why would this be any different than inheriting anything else? If I inherit $50,000, I don't have to pay taxes on it, so why would you have to pay taxes on cards?

[bxb]

I think he might owe income tax if he sells the cards. He would be selling an asset and generating income from it.

[jstef]

He would owe income tax on the amount that exceeded his cost basis.

[birdman42]

Originally Posted by jstef

He would owe income tax on the amount that exceeded his cost basis.

Correct. Inherited items have what's called a "stepped-up" basis--meaning that you use the value at the date of death rather than having the original owner's basis passed along. (Unless it's a stack of Joe Charboneau rookie cards.)

PolarBear, you're correct that you wouldn't owe taxes on the $50,000. But if you put the money in the bank you would owe taxes on any interest it earns.

Bill

[ALR-bishop]

The SCD Standard Catalog is issued annually, although they dropped post 80 several years back. While I would not put great stock in their listed values for any particular card or set, they do list a spread of values for each card and set. Not sure if it would be precise enough for tax valuations, but know someone who used it for that purpose in similar situation. But she has not been audited.