How Do You Deal With It?

Zero becuse it is gifted. Also as long as you are pursuing a hobby and not a busuness then you have no liability

[DaveH]

I was under the impression that profits made on "sports collectibles" were taxable and not at the 15% capital gains rate either but at the 25% rate. And it doesn't matter if you just considered it a hobby.

dh

[calvindog]

Originally Posted by Pup6913

Zero becuse it is gifted. Also as long as you are pursuing a hobby and not a busuness then you have no liability

Ummm...unless one of you guys stayed in a Holiday Inn Express last night I might suggest speaking with a T & E attorney first.

[ChiefBenderForever]

If it's a hobby and under $10,000.00 then no taxes from what I understand.

[Jim VB]

Tsaiko,

This is the wrong place to get GOOD advice on a tax issue. Follow Jeff's suggestion and consult a professional.

[Tsaiko]

Originally Posted by Jim VB

Tsaiko,

This is the wrong place to get GOOD advice on a tax issue. Follow Jeff's suggestion and consult a professional.

Thanks Jim, good advice, I've talked to two already (casually though). GOOD may be the operative word here
Still like to hear any personal experiences though.

[Jacklitsch]

It seems to me, notwithstanding Calvin's comment, that if you "inherit something you inherit it with a valuation as of the date of death or six months thereafter. This is called a "stepped-up basis"

Then if you sell it, assuming you sell for the value so determined above, you incur no taxable event.

I could be wrong but then I've never stayed at a Holiday Inn Express.

[Jim VB]

Originally Posted by Jacklitsch

It seems to me, notwithstanding Calvin's comment, that if you "inherit something you inherit it with a valuation as of the date of death or six months thereafter. This is called a "stepped-up basis"

Then if you sell it, assuming you sell for the value so determined above, you incur no taxable event.

I could be wrong but then I've never stayed at a Holiday Inn Express.

Steve,

I "think" your statement is correct (I'm not a tax guy either, however.) But your scenario brings in another point to consider. I would guess that most people don't officially "inherit" baseball card collections. I bet most go through from generation to generation, without the close scrutiny of any kind of probate. I realize it's rare (non-existant in 2010) but there may be a liability due even at that point. Since they aren't officially valued as part of an estate, assigning a value after the fact is dicey.

[Tsaiko]

Originally Posted by Pup6913

Zero becuse it is gifted. Also as long as you are pursuing a hobby and not a busuness then you have no liability

It's my understanding that a auction house will issue a tax form (1099?), so if one omits that form from their taxes they will have some splaining to do.
I'd imagine that no one wants to go face to face with the government.

[Leon]

As Jeff said you guys really, really, really need to speak to a CPA licensed in your state. Anytime you make over $600, from a source, they have to report it to the IRS. I don't think auction houses have to report as there is no cost basis, but you still would. Anytime you make a profit you need to report it. Follow those few things and you are probably close to being correct.....

[Jim VB]

Even this advice I would take with a grain of salt. Rates, income levels, etc., seem to change annually.

http://www.sportscollectorsdaily.com...ould-know.html

[barrysloate]

I once auctioned a tobacco card collection that was inherited by the consignor. At the end of the auction, instead of writing a check made out to him, I made it out "to the estate of..." In this way, the heirs did not have to pay tax on it.

But I am not an accountant, I'm just passing along how this was handled.