How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

If a stamp collection is valued at 75000.00 and I sell at

Customer Question

If a stamp collection is valued at 75000.00 and I sell at 37000.00 can I claim the loss?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

Capital gain (and loss) are calculated using the sales price and your basis (investment in the collection).

...

Sales price MINUS basis = gain (loss)

...

Basis is your investment IN the collection

Expert:  Lane replied 1 year ago.

If you acquired the stamps years ago, and can't prove when they were purchased, establishing the cost basis can take some work ...

If you purchased all at once, AS a collection, that certainly makes things easier

Expert:  Lane replied 1 year ago.

Anopther piece on this is that you must establish that this was help for investment purposes. Note that you don't have to PROVE, when reporting, investment use when filing your return.

...

BUT I would make a log or get an appraisal of the collection before selling, it can be used to document your investment.

...

If you are a dealer, then the stamps would not be capital assets, and your profit/loss would be ordinary, rather than capital.

...

Finally back to your investment IN the collection, (your tax basis) if you built the collection over a long period of time, IRS does allow for retroactive creation of basis. Typically, that process begins with looking at a history of stamp prices ... a dealer who has a research library may be able to help with this.

...

Expert:  Lane replied 1 year ago.

Let me know if you have questions

...

Lane

...

If this HAS helped, and you If you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.
...

Expert:  Lane replied 1 year ago.

Hi,

….

I'm just checking back in to see how things are going.

….

Did my answer help?

….

Let me know…

….

Lane

...