[puckpaul]

Originally Posted by Smarti5051

I realize I should read the other thread, but I am not sure how "buy more" actually helps reduce tax burden. My understanding is that you pay tax on the difference between net sale price and your basis in a card. So, if you have 5 cards that you bought for $10,000 and sell them this year for $210,000, you would have a net gain of $200,000, which is subject to income tax. If, during this tax year, you bought an additional card for $200,000 (let's say a Ruth Goudey), but you continue to hold it, you can't reduce your gain with the new inventory purchase. I need BobB to check in on this one, but that is my understanding. Otherwise, a company could perpetually increase their assets by buying new cards to offset gains on old ones without ever paying taxes (which is generally frowned upon by the tax man).

I would love to be wrong on this one, so please let me know if this is inaccurate.

I don’t think that was meant to imply you can avoid taxes this way, just that it is inevitable, so don’t sell, just buy….i think it was a joke.