This is a pretty useful thread! I bought a golden age key years ago and just saw one in the same grade sold in November for 10x my cost, so while I thought I’d never sell, now I wonder (and hence my search in this board for “Capital gains” which led me here).
Since the 2007 stock crash, I’ve had a carry-forward capital loss of about $70k. If I ever had a gain, it would be offset by that loss. I didn’t have that gain until I sold my home last year, so when I do my taxes in the next 2 months, the gain from the house will eat up all of that loss, and I’ll still have a Capital gain for 2021.
So if I sell the comic in 2022, then at least that gain won’t also be added to the 2021 gain, but would it matter? Does a gain push you into a higher tax bracket, and higher AGI, or is it separate? I think it’s separate.
If I sell in 2022, the collectible gain applies (28%?) I’d thought about gifting it to kids to sell, but that seems to have 2 disadvantages: they can’t subtract the initial cost I paid, and it’s still taxed at 28% - the fact that they have no income and are in the lowest tax bracket may have no benefit if the collectibles tax rate is unaffected by your tax bracket
what if I decide not to sell, and it goes to my kids when I’m dead? Would it then be a burden to them? (they may fight over what to do with it, and/or timing of a sale, and when they finally do sell, it would be taxed at 28% of 100% of the sale price, since they have no cost basis)?
Finally: does who you use to sell have any pros/cons? Is a private sale preferable to a HA auction? If expenses aren’t deductible (can’t be subtracted from your gross to lessen the net), then wouldn’t it be better to use an auction house that charges the premium to the buyer (and not a broker who charges me as the seller)?