Hi. I was laid off earlier this year, and I'm still job hunting. I'm looking at selling some of my collectibles in order to make ends meet. So I have some questions on tracking the "profits" from selling off my collectibles.
My first question. About 10 years ago I purchased a couple large sets of collectible cards as a personal investment, with the intent to eventually resell the cards. Overall, I have approximately 80,000 cards, varying in value from less than a penny, up to a couple hundred dollars for each card. I do know the overall total that I paid for all of the cards. The cards were received unsorted, so there's not a simple way to know what I have without organizing the entire collection. The majority of the cards seem to be worth around a couple cents each. If it matters, I live in Maryland, and it is going to take me more than a year to sell that many cards. What would be the proper way to track my profits, so I can correctly report things on my taxes
? I want to make sure I can keep out of any potential trouble with the IRS.
On a similar note, I have a bunch of comic books that I purchased mostly at full price, but when I sell them, I will take a huge loss in general, selling many at 25 cents each. However, some could be worth several hundred dollars. Do I need to report that, since I'm sure the overall value should be negative? And what documentation would I need to support my claim?