Posted By:
Frank WakefieldI put "think" up there because I'm not certain. But I've talked with accountants who were uncomfortable with the capital gains stuff.
I think the way you can do the capital gains thing is if you aren't a collector, but are a dealer. You track inventory; acquisition date and cost; business costs of storage, advertising, transportation, and the like; as well as your sale dates and amounts. I think that's the only way you do any good trying to deduct milage, plane tickets, hotel room, convention fees, and the like.
The IRS does not view a baseball card in the same light in which they view stocks, bonds, or mutual funds. Baseball cards aren't investments.
It makes sense to me that if I'd bought a Mark McGuire rookie card in 1994 for $5, and I sold it in 1998 for $50, that should be a $45 gain in my mind. My understanding is that the IRS doesn't have that opinion.
Frank.