Investment potential- which cards will do best?

[E93]

Originally Posted by Bicem

Cards that I felt were under-valued or should be worth more.

Profound insights from Jeff P. Thanks Jeff.
JimB

[Bicem]

thanks Jim, the Dalai has nothing on me!

[E93]

I prostrate at your feet.... three times.
JimB

[Tsaiko]

Right, all I'm saying is, it is capital gains.

And, as I understand it, if your income tax bracket is below 28 percent, you'll pay at your income tax rate rather than a higher capital gains rate.

To the OP: Collect because you love the hobby, invest if you want to turn a profit. Psychologically, at least to me, it's two different worlds. That's not to say that collectibles can't be a part of a total portfolio, but I would think a smaller part than stocks, bonds and real estate.

If you do "invest" in cards long term, don't forget possible deductibles, like grading, insurance, building that display case, discussing collectibles with your CPA or tax attorney, etc.

Personally, I won't pay a penny of tax on collectibles, since they will be TOD to my heirs, who can sell them for their value at my death, also without paying taxes. Death, the best way to beat the IRS

[FrankWakefield]

Alright, I think that 28% or your tax rate if less deal is correct. It is for collectables. IRS won't accept cards as an investment. So I think what I had about ordinary income is incorrect and overstated.

It reminds me of Tulipmania.

[ChiefBenderForever]

Jackie Robinson and Pete Rose will only go up, ESP Pete Rose.