Just Inherited Some Comics from 1940's 5 5

[revat]

1 hour ago, shadroch said:

Out of curiosity, which of the three do you think know would be the quickest to process the books, sell them and cut a check?

I think with such a big book (and other big books), you could pretty much negotiate any terms you wanted to in terms of processing, getting the books in auction, and getting the moneys (probably two months at the shortest, faster if the customers pay quick).  It might not maximize value though, and they (the auction house) would probably argue against the quickest possible turnaround. Advertising matters, timing matters, pressing and/or cleaning might matter, resto checks matter, sometimes other books in the auction matter, etc.

 

And yes, there have been some red flags...if anyone is considering making private offers, get tons of pictures first, meet in person in secure public places, and bring a friend or two.  And for the OP, seriously just fly yourself to florida with these books and deliver them yourself.  its worth it for piece of mind.

[namisgr]

1 hour ago, Bomber-Bob said:

So what you are saying is this was not a wise decision to go on the internet and discuss the fact that this was an inheritance. I have no knowledge about the topic but I immediately thought he should have been stealth about the inheritance part. He could have shown us the comics without disclosing how they were acquired.

If you inherited the collectible, the basis is the fair market value of the item at the time of inheritance. 

Unless these comics appreciated in value since they were inherited beyond the cost of getting them encapsulated and auctioned, there is no net gain beyond the basis to be federally taxed for the person inheriting them, provided the comics are part of an estate with a total value under $5.49 million.

 

Edited July 11, 2018 by namisgr

[revat]

25 minutes ago, namisgr said:

1 hour ago, Bomber-Bob said:

So what you are saying is this was not a wise decision to go on the internet and discuss the fact that this was an inheritance. I have no knowledge about the topic but I immediately thought he should have been stealth about the inheritance part. He could have shown us the comics without disclosing how they were acquired.

If you inherited the collectible, the basis is the fair market value of the item at the time of inheritance. 

Unless these comics appreciated in value since they were inherited beyond the cost of getting them encapsulated and auctioned, there is no net gain beyond the basis to be federally taxed for the person inheriting them, provided the comics are part of an estate with a total value under $5.49 million.

but was there a basis established or noted at the time of the inheritance?  and if so doesn't the grading raise the value significantly (less the cost of grading?)?

for example the pep 22 midgrade raw in 2017 might be $100K in OSPG.  But with a clean and press might sell for $220K in 2019.  Or what if there was no dispute and the comics were all valued out at $10,000 total in the inheritance because no one really cared to check at the time and there were no disputes (or it was like everything in my old house belongs to this dude, should be all worth less than $4m total so who cares)? 

I don't know inheritance law or tax very well, but seems like they should pay to consult someone who does.

[namisgr]

8 minutes ago, revat said:

but was there a basis established or noted at the time of the inheritance? 

I haven't a clue, but was simply describing the basic parameter as to how a federal tax liability on an inherited collectible is determined.

I also haven't a clue what grades all these cool books are and whether any are restored.  Nor does anyone else here.

 

Edited July 11, 2018 by namisgr

[The Lions Den]

7 hours ago, pemart1966 said:

Regardless of how you decide to dispose of the books, you will have to do some "work".  If you decide to sell them as a lot YOU will have to do the research to determine what you think is a "fair price".   Is $10,000 a fair offer?  What about $50,000?  What about $150,000?  Short answer is you cannot/will not know until you yourself have done the work to determine their value.

As you can see, your post has prompted a substantial number of comments, advice and noise.

Take the time to educate yourself as to the value of the books; the condition of the books; previous sales of the same books; the various companies out there that offer auction/selling services etc.  The more information you have, the better positioned you'll be when you make your decision.

The biggest mistake that you can make is to be lazy about the whole thing.  It could end up costing you tens of thousands of dollars or more.

Well said, sir! I salute your intelligence and insight. Test the waters before you swim with these guys...   

[catman76]

My advice is read and enjoy them, that's what I would do. There's tons of great stuff there, don't entomb them in plastic, read em.

[Artboy99]

36 minutes ago, catman76 said:

My advice is read and enjoy them, that's what I would do. There's tons of great stuff there, don't entomb them in plastic, read em.

A great solution for all of us comic guys. Is the OP into comics? I am not sure.

I can honestly say if I inherited a PEP 22 I would be very tempted to keep it.

[NomadCow13]

10 hours ago, The Lions Den said:

Congratulations! If I may, I would like to offer some friendly suggestions regarding this wonderful inheritance. 

1)  Are you a drinking man? Personally, some of the best decisions I've ever made involving large transactions (like buying or selling real estate, or these days, a sport utility vehicle) went much smoother after I sat down and had a couple of beers (or wine, whiskey, moonshine, take your pick). It gives you time to relax and mull it over...and you've certainly got some mulling to do. 

2) Do you have a current copy of the Overstreet Price Guide and/or Grading Guide? These books can be very helpful in determining what you have and how much it's worth. You can usually find them in the hobby section of most well-stocked book outlets---just make sure it's the current copy with current pricing. In this situation, it pays to educate yourself a bit before entering shark-infested waters. 

3) Since you're probably going to get most of these books certified (a wise decision, given the value and variety of this collection) you may as well cut out the middleman. Like any transaction, the more people you deal with, the more likely it is that things will become more confusing, and it always increases the possibility of things going south. I would call CGC and ask to speak to the operations manager, Harshen Patel. He's a busy guy, but with a collection like this I'm sure it would capture his interest. At the very least, he could give you an idea of the costs involved in slabbing these books. Since the Pep #22 is the undisputed champion of this collection, I'd concentrate on that one first. 

4) Are these books bagged and boarded? If not, you may want to think about investing in some good quality mylars and backing boards. This will at least keep the books in great shape until you decide what to do with them. Always keep them out of the sunlight and try to keep them in a cool, dark, climate controlled environment (No basements or attics, please).

5) I keep my most valuable books in a safe deposit box. It's an ideal spot for obvious reasons.

Again, congratulations! I hope you have a great summer, and good luck!  

This was useful information. Thank you Lions Den.

[thehumantorch]

2 hours ago, namisgr said:

I haven't a clue, but was simply describing the basic parameter as to how a federal tax liability on an inherited collectible is determined.

I also haven't a clue what grades all these cool books are and whether any are restored.  Nor does anyone else here.

 

We don't know if they're complete for starters.

[The Lions Den]

4 minutes ago, NomadCow13 said:

This was useful information. Thank you Lions Den.

You're welcome!   

[NomadCow13]

7 hours ago, revat said:

I'd make the call to Comic connect and comic link, but my guess is that I'd still ultimately go with Heritage.  But you should do your own research, and attempt to negotiate terms with each company, then compare for yourself.

One other thing - There have been suggestions of possibly getting a cash advance on future sales, as well as negotiating terms to have the ACTUAL auction in 2019, and neither of those seem like a bad idea.  Seeing as how this could be a significant amount of money, you might want to consider some tax planning as to how much income you want and in what periods, and/or what to do with that money and when (buy some tax free bonds? load up your retirement? make other investments? buy investment property, start a business?).  Additionally, if the comics are still in trust and you have not received them yet there may be a situation where the estate trustee can just ship it all to the auction house and they just cut you a check tax-free at the end, although that may involve more income taxes on the part of the estate.  But they (and you) would have to work out the math to see if that's worth it (or legal).  I'm just saying it might be worth talking to a lawyer, accountant, or financial planner about your plans too.

Thank you revat. I didn't think about the tax part. 

[NomadCow13]

9 minutes ago, thehumantorch said:

We don't know if they're complete for starters.

To be clear... this entire collection just fell in my lap. They have been sitting around untouched for over 40 years. I have been studying, came to this forum, listening to your advice, and have been on the phone with people. I went zero to 60 in four days. 

[1950's war comics]

8 minutes ago, NomadCow13 said:

To be clear... this entire collection just fell in my lap. They have been sitting around untouched for over 40 years. I have been studying, came to this forum, listening to your advice, and have been on the phone with people. I went zero to 60 in four days. 

what a stroke of luck and blessings that you got that one super great comic in that pile 

[NomadCow13]

I appreciate everyone's insights. I have been pretty obsessed with learning about these comics. I'm going to take a couple days break from them and give a couple people a call on Friday. Thank you all.

[thehumantorch]

Just now, NomadCow13 said:

To be clear... this entire collection just fell in my lap. They have been sitting around untouched for over 40 years. I have been studying, came to this forum, listening to your advice, and have been on the phone with people. I went zero to 60 in four days. 

Absolutely understood.  This is a very confusing situation for someone who's never been involved in the hobby. 

What's the grade, are they complete, is there amateur or professional restoration, what's worth what, how and where to sell, how to pack and ship, should they be pressed and cleaned and graded, who can you trust?  Hell, even amongst ourselves we can't agree on where to sell these books and our estimate of value would vary quite a bit.

You made a great first step, coming here and asking questions.  I know that if I didn't know anything about comics and I wasn't emotionally attached to these books I'd consign them to a quality auction house that has the knowledge and experience to maximize what these will sell for.  Comiclink, Comic Connect, and Heritage are what I'd consider the best auction sites and in my limited experience Heritage generally gets the best results for Golden Age comics but they charge the highest fees.

I'd also imagine your message box has filled up with people eager to buy this collection.  Bedrock, Bob Storms, Greg Reece, for example are all trustworthy dealers - I'd even let them date my mother - and they'd probably make you very fair offers but I'd lean to an auction setting for this unknown collection hoping for bidding wars on some of the books.

[skypinkblu]

3 hours ago, NomadCow13 said:

I appreciate everyone's insights. I have been pretty obsessed with learning about these comics. I'm going to take a couple days break from them and give a couple people a call on Friday. Thank you all.

Lon Allen and Ed Jaster are both people I've met in the past, and they were both always stand up people.  Either one could steer you to the proper person. 

There are a lot of wonderful dealers here as well, but an auction would most probably get you the most money and be the easiest for you.

Here is a link to Heritage.

https://www.ha.com/c/about.zx?id=23

[Qua-Brot]

Thats an amazing inheritance - and loads of fun too (if you are enjoying learning about comics and how to sell them etc.) or a huge headache. Either the thrill of a lifetime selling these or you'll be asking why didn't whoever left these just leave money!!!!

Pristine Comics is in your neck of the woods (I think between Tacoma and Seattle). Don't know if I'd sell directly to him as he will pay wholesale and you have the opportunity, through an auction house, to get very close to retail. But either way he can help you with some of the grading, storing, and packaging questions.

I know it was a few days ago, but I agree with those who suggested flying out to Florida to drop off the books. BUT, you should definitely get them pressed, and that may take some time (no walk through for pressing) so flying there to drop them off is the thing to do and have them sent to whomever you decide to sell them to, or back to your parents and then directly into a bank vault if you hold them.

I recently had a similar "find" and though I mailed it to CGC (fully insured) when I found a buyer I flew out to meet him and made the exchange in a lawyers office in person. 

Good luck, keep us all informed how it goes!

[fast eddie]

Yes,,,,,,good luck Nomad,,,,,,,let us know how it works out for you!

[comicquant]

Seeing the Pep Comics 22 I wouldn't take them anywhere on my own.  Have a professional who's knowledgable and prepared for such an endeavor come to you.  If you plan on selling them, maybe start with Heritage.  This is what they do and that book alone would warrant the trip (Especially if its as nice as it appears).  No matter what you do, this is very cool!

[NomadCow13]

16 hours ago, fast eddie said:

Yes,,,,,,good luck Nomad,,,,,,,let us know how it works out for you!

I wish I would have done nothing and just had someone come and see me. I nicked a corner off of Pep22 trying to bag and board. These are old and brittle and too thick for even the golden bags. Live and learn. I got Heritage wanting more pics of Pep22, which I have provided for them, and they are willing to fly out to see them. I wish I did nothing and just had an expert come and see these things.