Investment potential- which cards will do best?

[William Todd]

Frank is spot on. Invest in investments for future income and growth. The best cards will be in demand but at a price that can vary greatly. Look at coins. I collected for 25 years and sold many graded cards in 2009 as I thought prices were kind of high. Pre War quality will probably hold demand the best, but demographics of the population should be considered. The baby boomers, a large buying population are retiring and need income. Holding your collection doesnt pay any income. I recently was lucky to have a client show me an original family T206 collection that was collected by her uncle. These types of original cards will gain in value as many graded/trimmed/altered cards see more scrutiny... Just my opinion. And I still
hold many cards and love T207's and T206's.

[FrankWakefield]

Thank you, William and Oklahawg...


If you buy a slabbed card for $1000, and sell it for $3000, you have $2000 of ordinary income.

If you buy $1000 of mutual funds and sell that for $2500, you have $1500 that is subject to capital gains tax.

There's a right smart difference. Collect collectables; invest in investments.

[Delray Vintage]

Long term gains on cards are not taxed at ordinary income, they have a max of 28%. While not at the favorable 15% at least not at highest rate.

[FrankWakefield]

Bob, you get an IRS agent to agree with that, then email me the agent's name, please Sir.

[joeadcock]

E107's would be on my list.

[sox1903wschamp]

Originally Posted by joeadcock

E107's would be on my list.

Yeah, me too!

[Delray Vintage]

The policy reasons for taxing collectibles at 28% versus 15% for stocks or other business investments is that the latter are seen as investments in growing the economy. The policy makers in Congress do not believe art, baseball cards, coins deserve the best rate because they do not grow or multiply economic activity.

[Tsaiko]

Originally Posted by FrankWakefield

If you buy a slabbed card for $1000, and sell it for $3000, you have $2000 of ordinary income.

It's my understanding that the IRS looks at the $2000 as capital gains, just like a stock that appreciated that much. I'd love to learn why that isn't the case, please educate me.
Thanks,

[William Todd]

Cards are treated as collectibles...28%...End of story...