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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12654
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hi. I was off earlier this year, and Im still job hunting.

Resolved Question:

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?

Thanks!
Submitted: 10 months ago.
Category: Tax
Expert:  Megan C replied 10 months ago.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

To track your profits, you would keep track of what you sold each card for,

Megan C :

and then subtract what you paid for the card from that amount

Megan C :

For your comic book collection this is a personal asset and you do not deduct losses of personal use assets

Megan C :

How you figure what you paid is you take the entire purchase price and divide by the number of estimated cards you have

Megan C :

so there is no reporting requirement, unless you sell one for a couple hundred bucks each, then you would report the sale of that one on schedule D

Megan C :

You can deduct the losses of the cards because they are an investment.

Customer:

Thank you very much! You've been a big help!

Megan C :

Okay you can try again

Megan C :

Sorry I had a setting off

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12654
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 5 other Tax Specialists are ready to help you
Expert:  Megan C replied 10 months ago.
Thanks for your positive rating and generous bonus. Please come back and see me if you need anything additional. It was a pleasure working with you today.

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