How do you navigate the tax burden of selling expensive cards?

[sb1]

The loss is probably is taken and passes far more than one would think. I imagine it has to do how it was listed on the return. And. as vague as the codes are many agents probably don't know the correct answer as well.

[Touch'EmAll]

Business vs. Collector vs. Investor - big question. I go with "investor" and Schedule D on my tax return.

By the nature of my acquisitions I feel I can prove investor. I do not collect sets with all the commons, I only collect the most biggest of names and relatively highly graded at that. I do not have an IRA and money for retirement goes into higher end cards, and for the most part stays there. My intent is investment for profit - capital gains.

Keep track of cost basis, and sales price. Declare all sales transactions. Should be good to go.

[ullmandds]

calling ones self an "investor" seems to be the smarter play for tax purposes...what a ruse. enjoy a passion filled hobby to fill the time and enjoy with others and get punished for it! Claim your "collection" is a portfolio for the sole purpose of making money and u are rewarded...cuz this is Merica!

[Exhibitman]

The secret of America is...money, Pete. Everything is money.

https://youtu.be/qHDBDTlrp0o

[Jewish-collector]

Remember the Cyndi Lauper song, "Money Changes Everything"
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[Popcorn]

Taxed when you buy and taxed when you sell. Make some dough pay the toll lol

[molenick]

I am unclear how declaring yourself an "investor" or a "collector" on a tax form would change your tax responsibility if you sell a card for profit. I am also not clear where on a tax form this would be noted...there is a place for your occupation, which for most of us would be our 9-5 job. I don't see anything on Schedule D that asks if I am a collector or investor.

Maybe I need a new accountant!

[Edited to add that I just read the link from sb1 which was informative (even if I didn't understand it all). I can see the difference between someone who's job it is to buy and sell collectibles (e.g., a dealer) and someone who is buying them but whose job is something else. The investor/collector difference is still eluding me...unless it is that you can claim your occupation is "investor" and that will make a difference.