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

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37000.00 can I claim the...
If a stamp collection is valued at 75000.00 and I sell at 37000.00 can I claim the loss?
Submitted: 2 years ago.Category: Tax
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10/21/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,281
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

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

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years 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

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years 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.

...

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years 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.
...

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Hi,

….

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

….

Did my answer help?

….

Let me know…

….

Lane

...

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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
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