Capital Gains Tax on Collectibles

pootshwan · Jan 25, 2013

How many people here pay this tax after flipping cards for a profit? If you don't, you're breaking the law. This must really cut into your profit if you're a prospector or flipper. Anything held for over 1 year is taxed at 28%, anything under a year is your normal income tax rate.

"If you invest in art, gold, silver, coins, stamps, wine, books, or virtually anything else that can be labeled a collectible, then the special collectible capital gains taxes probably apply to you. These rates are higher than regular capital gains taxes."

Capital Gains Tax Rates on Collectibles

cmnkb8 · Jan 25, 2013

If you're making a profit on flipping cards, you really should think about establishing yourself as a business. Disclaimer: Consult a CPA or tax attorney to see what's best for you

.

pootshwan · Jan 25, 2013

cmnkb8 said:
If you're making a profit on flipping cards, you really should think about establishing yourself as a business. Disclaimer: Consult a CPA or tax attorney to see what's best for you.

A lot of guys here are "prospectors" or "flippers" you would have to assume some of them are making a profit (as that is the main objective).

I don't think many people prospect for the "I told ya so" aspect.

Derek2011 · Jan 25, 2013

pootshwan said:
A lot of guys here are "prospectors" or "flippers" you would have to assume some of them are making a profit (as that is the main objective).

I don't think many people prospect for the "I told ya so" aspect.

Bad assumption as there isn't a prospector out there who HASN'T come across their "Mitch Einertson"

tonsofcommons · Jan 25, 2013

Everyone who buys/sells on a regular basis should be claiming everything on their taxes, along with all the applicable deductions.

cmnkb8 · Jan 25, 2013

Derek2011 said:
Bad assumption as there isn't a prospector out there who HASN'T come across their "Mitch Einertson"

Why would it be a bad assumption? It's fairly safe to assume some have made profit. Just because one might've come across a Mitch Einertson doesn't mean you can't turn around and find a Mike Trout.

uniquebaseballcards · Jan 26, 2013

Since there's a capital gains tax on collectibles, has anyone been able to use cards as collateral on a secured loan?

Pine Tar · Jan 26, 2013

Having Redemptions in products is breaking the law. Selling something and saying your getting something thus not actually producing the card, or even taking to long to produce it is not right. So if I buy a card and flip it, for more money I'm not reporting it. And I never will as long our Federal Government allows Topps to drive sales on the premise that I can get a card from a product, to only find out it is by Redemption since they could not secure said card in time of release, and then not produce said card, and or send me a replacement for less the the original value, of said card.

pootshwan · Jan 26, 2013

Derek2011 said:
Bad assumption as there isn't a prospector out there who HASN'T come across their "Mitch Einertson"

It's fairly naive of you to think no one is profiting from prospecting or flipping cards.

shayscards79 · Jan 26, 2013

Well, until I get a 1099K from paypal... notasingleXXXXwasgiven.jpg

pootshwan · Jan 26, 2013

Pine Tar said:
Having Redemptions in products is breaking the law. Selling something and saying your getting something thus not actually producing the card, or even taking to long to produce it is not right. So if I buy a card and flip it, for more money I'm not reporting it. And I never will as long our Federal Government allows Topps to drive sales on the premise that I can get a card from a product, to only find out it is by Redemption since they could not secure said card in time of release, and then not produce said card, and or send me a replacement for less the the original value, of said card.

You don't think Topps or any other Manufacturer for that matter have done their due diligence and covered their ass on this front? I'm sure they had their lawyers look into the legality of inserting redemptions into packs before releasing the product. They're a multi-million dollar company. I'm no legal guru but it's not like they're hiding anything from the buyer, you know before buying the product there are redemptions inserted. They're not disclosing that information. I would think that simple fact right there relieves them of any liability.

I appreciate your enthusiasm but believe me, it's not against the law to insert redemptions into baseball card packs.

200lbhockeyplayer · Jan 26, 2013

uniquebaseballcards said:
Since there's a capital gains tax on collectibles, has anyone been able to use cards as collateral on a secured loan?

Touche!

And a very interesting point.

Posted by witchcraft, voodoo and technological kung fu.

jcmint · Jan 26, 2013

LOL I guess we dont already pay enough tax in every other area in every day life.

mjbuchanan80 · Jan 26, 2013

Anyone who is making a substantial profit on flipping...yeah go ahead and set up a business and pay business taxes. If your making a couple grand a year doing it from a few dozen sales, your a fool to report that. The # of things that are taxed in this country is insane. Screw the federal government and there attempt to nickel and dime us into oblivion.

-steps off my Libertarian soapbox.

Sent from my LG-P999 using Freedom Card Board mobile app

shayscards79 · Jan 26, 2013

mjbuchanan80 said:
Anyone who is making a substantial profit on flipping...yeah go ahead and set up a business and pay business taxes. If your making a couple grand a year doing it from a few dozen sales, your a fool to report that. The # of things that are taxed in this country is insane. Screw the federal government and there attempt to nickel and dime us into oblivion.

-steps off my Libertarian soapbox.

Sent from my LG-P999 using Freedom Card Board mobile app

I voted for Gary Johnson. Good to see a fellow libertarian around here.

Agree with what you said. I pay enough in taxes, esp living in Chicago.

Derek2011 · Jan 26, 2013

pootshwan said:
It's fairly naive of you to think no one is profiting from prospecting or flipping cards.

And even more naive of you to assume that I meant that NO ONE is profiting from prospecting.

pootshwan · Jan 27, 2013

pootshwan said:
A lot of guys here are "prospectors" or "flippers" you would have to assume some of them are making a profit (as that is the main objective).

I don't think many people prospect for the "I told ya so" aspect.

Derek2011 said:
Bad assumption as there isn't a prospector out there who HASN'T come across their "Mitch Einertson"

pootshwan said:
It's fairly naive of you to think no one is profiting from prospecting or flipping cards.

Derek2011 said:
And even more naive of you to assume that I meant that NO ONE is profiting from prospecting.

Really? Do you suffer from short term memory loss? Or is selective memory that helped you forget what you wrote? It's ok, I'll remind you.

PujolsCollector · Jan 27, 2013

Where is that annoying lawyer (that we all love....errrr love to hate)? Im sure he has something to say about this

nborton · Jan 27, 2013

After eBay's huge take these days is there any profit left anyway?

jrinne · Jan 27, 2013

The notorious thread about taxes. I'm better than you because I do this and you don't.

Welcome to our community

Be apart of something great, join today!

Capital Gains Tax on Collectibles

Member

New member

Member

New member

Active member

New member

New member

Active member

Member

New member

Member

Active member

Super Moderator

Member

New member

New member

Member

Active member

Active member

New member

Similar threads

Log in